Annual Value of Property in Singapore: How to Check and Calculate It
Annual Value of Property is the estimated gross annual rent a property could earn in Singapore, based on comparable market rentals. The Inland Revenue Authority of Singapore (IRAS) uses this value to calculate property tax. If you own an HDB flat, condominium or private residential property, your Annual Value (AV) can affect how much tax you pay. But AV is not the same as your home’s selling price or the rent you actually receive. Here’s how to check your AV, understand the calculation and respond if your assessment seems too high.
TL;DR: Annual Value of Property
- Meaning: Annual Value is the estimated gross yearly rent a property could earn under IRAS valuation rules.
- Calculation: Estimated monthly rental value × 12 gives an illustrative annual rental value.
- Check online: Property owners can view their AV through the IRAS myTax Portal.
- Lookup fee: Checking another property’s AV costs S$2.50 per successful search, including GST.
- Property tax: The applicable tax rate depends on the property type and, for residential properties, its occupancy status.
What Is the Annual Value of Property?
Annual Value (AV) refers to the estimated gross annual rent a property could earn if it were rented out, excluding furniture, furnishings and maintenance fees. IRAS assesses this value for property tax purposes.
For example, an HDB flat in Tampines and a condominium unit in the same general area may have different AVs. Their sizes, layouts, conditions and comparable rental values can differ.
AV is also different from market value. Market value relates to the price a property could sell for, while AV relates to its estimated rental value over a year. Neither the original purchase price nor the owner’s actual rental income automatically determines the AV.
And a property can still have an AV even if the owner lives in it or leaves it vacant. Property tax is based on the property’s assessed value, not simply on rent collected.
How Is Annual Value Calculated in Singapore?
IRAS looks at the market rent of similar or comparable properties in the vicinity. It also considers the property’s size, location, condition and other relevant physical attributes.
For a condominium, comparable rentals may include similar units in the same development or nearby developments. For an HDB flat, rental evidence from comparable flats can be relevant. The assessment may differ from the rent stated in an existing tenancy agreement because that agreement may reflect an earlier market period or specific rental terms.
Annual Value Calculation Example
| Calculation | Illustrative amount |
|---|---|
| Estimated monthly rental value | S$3,000 |
| Multiply by 12 months | × 12 |
| Illustrative annual rental value | S$36,000 |
The arithmetic is straightforward: S$3,000 × 12 = S$36,000. But this is only an illustration, not an official IRAS assessment. IRAS determines the AV using its valuation process and relevant rental evidence.
How to Check Annual Value of Property Online
You can check your own property’s AV through IRAS’s digital services. The steps depend on whether you own the property or want to look up another property.
For property owners:
- Visit the IRAS myTax Portal.
- Sign in using the accepted login method for your account.
- Open the property tax services and view your property summary.
- Check the latest Annual Value and the available past-year records.
For people checking another property: - Open IRAS’s “Check Annual Value of Property” service.
- Enter the property address or property tax reference number as requested.
- Complete the enquiry and review the displayed result.
The public enquiry service does not require Singpass login. Check the current service instructions before submitting a search, as access conditions may change.
Annual Value Lookup Fees
| Lookup type | Fee |
|---|---|
| Owner checking their own property’s AV through myTax Portal | Free |
| Enquiry about another property | S$2.50 per successful search, including GST |
The public service allows searches for the current year and up to the previous five years. Property owners can view their own current AV and available past-year information through the owner services.
Annual Value of HDB Flat vs Condominium
An HDB flat and a condominium are assessed using comparable rental evidence relevant to each property. Their AVs can differ because of location, floor area, condition, layout and other physical features.
For example, two three-bedroom homes may have different estimated rental values even if they are in the same town. Their facilities, surrounding rental market and individual features may not match. It would be misleading to assume that every condominium has a higher AV than every HDB flat.
Annual Value vs Market Value
| Annual Value (AV) | Market value |
|---|---|
| Estimated annual rental value | Estimated selling price |
| Used for property tax assessment | Relevant to buying and selling |
| Based on comparable rental evidence | Influenced by sale prices and market conditions |
| Can differ from actual rent received | Can differ from the original purchase price |
Both values relate to property, but they answer different questions. Check the correct figure for the purpose you have in mind.
How Does Annual Value Affect Property Tax?
Singapore property tax is calculated by multiplying the property’s AV by the applicable tax rate. Residential properties use progressive tax rates, with different schedules for owner-occupied and non-owner-occupied homes. Other property types are generally taxed at 10% of AV.
An owner-occupied home is a residential property where the owner lives. Eligible owners can receive lower owner-occupier tax rates. A property rented to tenants may be subject to non-owner-occupier residential rates instead.
Property Tax Calculation Example
| Item | Example |
|---|---|
| Annual Value | S$36,000 |
| Applicable tax rate | Depends on property use and current IRAS rates |
| Basic calculation | S$36,000 × applicable rate |
| Final tax payable | Depends on the applicable rate, tax rules and eligible rebates |
This example does not give a final tax bill because the correct rate depends on the property’s circumstances. Check the current IRAS rate schedule and any applicable rebates before estimating what you owe. A higher AV does not automatically mean that the same percentage increase will apply to your final tax bill, since progressive tax rates may apply.
Why Does Annual Value Change?
IRAS may review a property’s AV as market rental conditions change. If comparable properties begin fetching higher or lower rents, the estimated annual rental value may also change. Changes to the property’s size, condition or physical features can be relevant too.
A revised AV does not necessarily mean the property’s selling price has changed by the same percentage. Rental values and sale prices measure different things.
If your AV changes, check your latest IRAS assessment and compare the valuation period with relevant rental evidence. Actual rent can be useful context, but it does not automatically determine the assessed value.
What to Do If Your Annual Value Is Too High
If your assessed AV seems excessive, review the property details and compare them with relevant rental evidence for similar properties. IRAS provides an objection process for owners who dispute an Annual Value assessment.
If you receive a Valuation Notice proposing a new AV, the objection generally needs to be filed within 30 days of the notice date. Check the instructions on your notice and the current IRAS requirements before filing.
Information to Prepare Before Objecting
- The property details and assessment period.
- Comparable rental evidence that supports your position.
- The reason for the objection and the desired AV and effective date, where requested.
- Supporting documents, such as relevant tenancy information or floor plans, if applicable.
A high tax bill or the fact that a property is vacant is not, by itself, a valid reason to object to the AV. An objection needs to address the assessment and be supported by relevant evidence. A successful reduction is not guaranteed.
Frequently Asked Questions
Is Annual Value the Same as Market Value?
No. Annual Value is the estimated gross annual rental value used for property tax assessment. Market value relates to the price a property could sell for. The two figures can differ considerably.
How Can I Check My Property’s Annual Value?
Owners can sign in to the IRAS myTax Portal and view their property summary. The public “Check Annual Value of Property” service can be used to enquire about another property’s AV for a fee.
Does Annual Value Change Every Year?
It can change when rental-market conditions or relevant property characteristics change. IRAS reviews property AVs, but the value does not necessarily increase every year. Check your latest assessment for the current figure.
Can I Check Another Property’s Annual Value?
Yes. IRAS provides a public enquiry service that allows searches using a property address or property tax reference number. Each successful search costs S$2.50, including GST.
Can I Object to a High Annual Value?
Yes, a property owner can object if they believe the assessment is excessive. Review the notice, gather relevant rental evidence and follow IRAS’s filing instructions. A new valuation is not guaranteed.
Conclusion
Annual Value of Property helps determine property tax in Singapore, but it is not the same as a property’s selling price or actual rental income. Check your latest AV through IRAS, review the applicable tax rates and gather relevant rental evidence if the assessment appears excessive.
Global Arena is a Singapore-focused SEO and digital marketing brand with a network of 25+ publisher websites, helping businesses strengthen their online presence through guest posting, link building, content marketing, and digital PR.
For collaborations, publishing opportunities, or business inquiries:
Hamza@globalarena.org | WhatsApp: +971 52 399 4589