Your property’s Annual Value helps the government determine a household’s wealth status. Based on this and other criteria, such as taxable income, the government determines how much to give and take from us. For example, “giving” comes in the form of COVID-19 salary support and GST vouchers, while “taking” refers to the property tax each of us needs to pay annually.
In short, it’s always good to know the Annual Value of a home, especially if you’re about to buy or rent it out.
But what is the definition of Annual Value, and how is it calculated? Let’s find out.
What is the Annual Value (AV) of a house?
Every property has an Annual Value. The actual definition of Annual Value (AV) is the estimated gross annual rent a property could fetch if it were rented out. This excludes any furnishings, furniture, and maintenance fees.
The Inland Revenue Authority of Singapore (IRAS) further clarifies that the Annual Value is “determined based on the estimated market rent of similar or comparable properties, not on the actual rental income received.”
Each year, IRAS also provides updates on the Annual Value to reflect changes in the rental market and sends valuation notices to property owners to inform them of any revisions to their property’s AV. In addition, IRAS considers external changes that might affect a property’s AV—such as a major upgrading of the condominium.
A major upgrade may change your property’s Annual Value.
Case Study on How to Calculate Annual Value for an Individual
Mr. Wang owns a three-bedroom condominium unit in Tanah Merah with a floor area of 1,200 square feet. Mr. Wang was initially an owner-occupier but now rents out the entire fully-furnished unit for $3,800 per month.
To calculate the AV of Mr. Wang’s apartment, IRAS uses the market rent of similar or comparable properties in his residential area. This includes units in the same condominium with roughly the same floor area and layout.
Assuming there are five comparable rentals ranging from $3,400 to $3,700. IRAS will consider these other rental transactions (not Mr. Wang’s) and apply a discount for the cost of furnishings, furniture, and maintenance fees. This effectively reduces the actual monthly rent to about $2,000, ultimately giving Mr. Wang’s property an Annual Value of $24,000 (i.e., $2,000 x 12 months).
The Annual Value is the same whether Mr. Wang is an owner-occupier or a landlord. The only difference is that the property tax is lower if the house is owner-occupied rather than rented out or vacant.
(⚠️Please note: Most government support schemes and subsidies exclude individuals who own two or more properties. Also, in this case, the $24,000 Annual Value would disqualify anyone living in the property from recent schemes like the Self-Employed Person Income Relief Scheme (SIRS)—even Mr. Wang’s adult son—although appeals are allowed.)
How does my home’s Annual Value compare to others?
The Singapore government publishes the median Annual Value for all types of residential properties in Singapore. Below are the median Annual Values for HDB and private properties in 2020. (As of this update, data for 2021 has not yet been released.)
| Property Category | Property Type | Median Annual Value in 2020 |
| HDB | 1-/2-Room | $5,100 |
| 3-Room | $7,860 | |
| 4-Room | $9,600 | |
| 5-Room | $10,380 | |
| Executive & Others | $10,680 | |
| Private Residential | Non-Landed (incl. ECs) | $22,200 |
| Landed | $34,800 |
(⚠️Please note: The significant gap between the Annual Value of HDB flats and private properties. Typically, an AV of $10,000 or less applies to all residents living in 1-, 2-, and 3-room HDB flats, and most 4-room HDB flats. An AV of $10,000 to $15,000 applies to most residents in 5-room HDB flats and lower-value private properties. An AV exceeding $25,000 covers the top 10% of the population living in higher-value private properties.)
Annual Value Increase in 2022
Note that as part of its annual review, IRAS will be revising the Annual Values of both HDB flats and private residential properties upwards in 2022. This means most homeowners can expect to pay higher property tax in 2022.
For HDB flat owners, the increase will be between 4% and 6% from 1 January 2022, in line with the rise in market rents. The last revision of HDB flats’ AVs was in 2017. Here’s a summary of the property tax payable increase:
| HDB Flat Type | Property Tax Payable in 2022 | Increase in Annual Tax Payable from 2021 |
| 1- and 2-Room Flats | $0 | $0 |
| 3-Room Flats | $0 – $32.80 | $8.80 – $14.40 |
| 4-Room Flats | $73.60 – $121.60 | $21.60 |
| 5-Room Flats | $107.20 – $155.20 | $24.00 |
| Executive Flats | $121.60 – $169.60 | $26.40 |
Source: Inland Revenue Authority of Singapore (IRAS)
How to check the Annual Value of a house?
You can check the Annual Value of your own property using the free service on the IRAS website. Additionally, you can use the Check Property Annual Value tool to find out the AV of any other property in Singapore for a fee of $2.50 per search.
What if I disagree with my property’s Annual Value?
If you wish to dispute the Annual Value assigned to your property by IRAS, you can file an objection through the service on the myTax Portal. You can do so within 30 days of the date of the Valuation Notice.
Alternatively, you can object to the Annual Value shown in the Valuation List (VL) at any time during the year, by 31 December of the year of the Valuation List.
Please note that IRAS does not consider the following as valid grounds for objection:
• The tax rate is too high
• There is no rental income as the property is owner-occupied
• Financial hardship
If you are not satisfied with the outcome of the appeal, you can choose to appeal further to the Valuation Review Board (VRB) of the Ministry of Finance within 30 days (though we haven’t heard of anyone who has taken such a great issue with their home’s AV). The appeal fee is $50 for owner-occupiers of residential properties and $200 for other property types.
I bought a new house. Will IRAS consider the Annual Value of my new or old home?
For homebuyers, your new address will be automatically updated with IRAS for property tax filing. The property tax you are required to pay by 31 January each year is based on the properties you held/used to hold in the previous year.
If you sold your old house, your buyer might need to reimburse you for the portion of the property tax you have already paid. Your lawyer or HDB officer (for HDB flats) will assist you in this matter.
If your house is a newly constructed property, the Annual Value will be provided within one year after the Temporary Occupation Permit (TOP) is issued. For the purposes of receiving government support packages, vouchers, and payouts, the Annual Value is based on your NRIC.
Frequently Asked Questions
What is the Annual Value of a house?
The Annual Value of a property is the estimated gross annual rent it could fetch if rented out, excluding furniture, furnishings, and maintenance fees. It is based on the estimated market rents of similar or comparable properties.
How is Annual Value calculated?
You can get assistance from an experienced real estate agent to help you estimate the Annual Value. Alternatively, you can check rental information for HDB flats on the HDB website or for private residential properties on the URA website.
How is Annual Value determined?
IRAS considers the following factors to determine the Annual Value: rents of similar or comparable properties in the area, size, location, condition, and other relevant physical attributes.
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