The Annual Value of your property helps the government decide the wealth of your household. Based on this and other criteria such as assessable income, the government decides how much it should give and take from us folks.
Examples of “give” come as financial support, such as the Assurance Package and Cost-of-Living and GST vouchers. On the other hand, the “take” refers to the property tax we have to pay every year by 31 January. The greater the Annual Value, the higher the taxes that will apply.
While it sounds complex, this article by 99.co will guide you through understanding Annual Value. What is Annual Value? Why is it important? How do I check my property’s Annual Value? Let’s find out!
Table of contents
- What is the Annual Value of a property (AV)?
- Increase in Annual Value (AV) and property taxes
- How can I check the AV of my property and others’?
- What if I disagree with the AV of my property?
- I bought a house. Will the government consider the AV of my new home or my old one?
- Frequently Asked Questions (FAQs)
What is the Annual Value of a property (AV)?
Every property has an Annual Value. The straight-up definition of the Annual Value (AV) of a residential property is the estimated gross annual rent a homeowner can collect if they rent out the property. This excludes furnishings, furniture, and maintenance fees.
The Inland Revenue Authority of Singapore (IRAS), which determines the AV of properties in Singapore, additionally clarifies that AV is determined “based on estimated market rentals of similar properties and not on the actual income received”.
IRAS also updates the AV of properties annually to reflect changes in the rental market and sends owners a Valuation Notice to inform them of any revision to their property’s AV. IRAS additionally considers physical changes—such as a major upgrade of an HDB block—that would affect a property’s Annual Value.
Case study: The logic behind the calculation of Annual Value (AV)
To deepen your understanding of the Annual Value, 99.co has prepared a case study here. Let’s do a breakdown! – Andy owns a three-bedroom condo unit at Tanah Merah with a floor area of 1,200 square feet (sq ft). Originally an owner-occupier, Andy now rents out the whole unit, fully furnished, at S$4,100 a month.
To calculate the Annual Value (AV) of Andy’s property, the IRAS uses the market rentals of similar properties within his development. This includes those of the same unit type, with roughly the same floor area within the same condo.
Let’s say there are five comparable rentals with amounts ranging from S$3,700 to S$4,500. IRAS considers these other rental transactions (not Andy’s) and discounts the cost of furnishing, furniture, and maintenance fees. This reduces the actual value per month to about S$2,300, ultimately giving Andy’s property an Annual Value of S$27,600 (i.e. S$2,300 x 12 months).
Condo for rent in District 16 (Bedok, Upper East Coast)
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2
1
1
1
1
1
1
1
1
1
3
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
4
1
1
1
1
1
1
1
1
1
1
2
1
2
2
2
2
2
2
2
2
2
3
2
3
2
2
2
1
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
1
2
2
2
2
2
3
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
3
3
3
2
3
2
3
3
3
2
3
3
3
2
3
2
3
3
3
3
3
2
3
3
3
3
3
3
3
2
3
3
3
2
3
3
3
2
3
2
3
2
3
2
3
2
3
3
3
3
3
2
3
3
3
3
3
2
3
3
3
3
3
3
3
4
3
2
3
2
4
4
4
4
4
3
4
4
4
3
4
2
4
3
4
3
4
3
4
3
4
4
4
4
4
4
4
3
4
4
4
3
4
3
4
5
4
3
4
2
4
3
6
4
6
4
Whether Andy is an owner-occupier or a landlord, the AV remains the same. The only difference is that it would receive less tax if it were owner-occupied, rather than being rented out or left vacant.
(Note that most government schemes and subsidies also exclude those who own two or more properties. Also, an AV of S$27,600 in this case would make anyone living in that property ineligible for recent schemes such as the Assurance Package cash payouts for seniors — even Andy’s senior citizen father.)
Recommended article: Property tax for homeowners in Singapore: How much to pay + Rebates + Deadline
Increase in Annual Value (AV) and property taxes
Take note that as part of its annual review, IRAS has increased the Annual Value for both HDB and private residential properties. The increase is in line with the increase in market rentals.
From 1 January 2024 onwards, the government will increase the tax rate on the excess for owner-occupied properties with an annual value of more than S$30,000 to 6-32%.
The property tax rate for non-owner-occupied properties (such as investment homes) will be even higher at 12-36% from 1 January 2024.
Meanwhile, the new property tax revisions announced during Budget 2024, which will take effect from January 2025, will help further ease rising costs of home ownership, especially for young households who collected the keys to their new HDB flats in the last few years.
The revisions do not change the tax rates but widen the bands at both tails of AV distributions. At the lowest band, where the property tax rate is 0%, they will raise the threshold from S$8,000 to S$12,000. They will raise the AV for the highest 32% band to over S$140,000, from over S$100,000 currently.
How can I check the AV of my property and others’?
You can check the AV of your property for free using the View Property Dashboard on IRAS’ website. Other than that, you can also check the AV of any other property in Singapore using the Check Annual Value of Property tool, with a fee of S$2.50 per lookup.
You may also want to get an estimate of your property value with the 99 Property Value Tool.
What if I disagree with the AV of my property?
If you want to dispute the AV that the IRAS has assigned to your property, you may go to the Object to Annual Value service on the IRAS tax portal to file your objection. You can do so within 30 days of the Valuation Notice.
Alternatively, you may object to the AV of your property as shown in the Valuation List (VL) at any time of the year, by 31 December of the year of the VL.
Take note that the IRAS does not consider the following as valid grounds for objection:
- Tax rates are too high
- There is no rental income as the property is owner-occupied
- Financial hardship
If you are unsatisfied with the outcome of the appeal, you may choose to further appeal to the Valuation Review Board at the Ministry of Finance within 30 days (although we have yet to hear of someone taking such a big issue with their home AV). The appeal fee is S$50 for owner-occupiers of residential properties, and S$200 for other property types.
I bought a house. Will the government consider the AV of my new home or my old one?
Once you receive the property, the IRAS will automatically update your new address for property tax filing purposes. For receiving government schemes, vouchers, and payouts, the AV is based on your NRIC.
Before transferring the new property to you, your lawyer or HDB officer (for HDB flats) will apportion the current year’s tax between you and the seller. You may need to reimburse the seller a portion of the property tax since they have already paid for the full year.
If there is any outstanding tax amount, your lawyer or HDB officer will help you settle it with the seller.
If your home is a newly completed property, you will incur taxes from the Temporary Occupation Permit (TOP) date. So if you only take possession of it at a later date, you can ask your lawyer to get reimbursement from the developer or the Building Service Centre (BSC) (for HDB flats).
Planning to sell your property soon? Let us help you get connected to a property agent.
If you found this article helpful, 99.co recommends How to estimate your property’s value like a pro with 99.co’s Property Value Tool and Property Valuation — What goes into them and why they’re important.
[Additional reporting by Virginia Tanggono]
Frequently Asked Questions (FAQs)
The Annual Value of a property is the estimated gross annual rent of the property if it were to be rented out, excluding furniture, furnishings, and maintenance fees. It is based on the estimated market rentals or similar properties.
You can get an estimate of the Annual Value based on the property rentals through property portals like 99.co, as well as the 99 Property Value Tool. Alternatively, you can refer to the rentals of HDB flats through the HDB website or the URA website for rentals of private residential properties.
IRAS considers the following factors to determine the Annual Value: rentals of similar properties in the area, the size, location, and condition of the property and other relevant physical attributes.
AV can affect the benefits and grants that homeowners might get from the government. It is also a factor used to assess the financial standing of homeowners and determine how much they might need to pay in income tax or property tax in Singapore.
About 99.co
We are a property search engine with the overarching goal of building a more transparent and efficient property market. We are working towards that future by empowering people with the tools and information needed to find a place to live in the best way possible.
Looking to sell your property?
Whether your HDB apartment is reaching the end of its Minimum Occupation Period (MOP) or your condo has crossed its Seller Stamp Duty (SSD) window, it is always good to know how much you can potentially gain if you were to list and sell your property. Not only that, you’ll also need to know whether your gains would allow you to right-size to the dream home in the neighbourhood you and your family have been eyeing.
One easy way is to send us a request for a credible and trusted property consultant to reach out to you.
Alternatively, you can jump onto 99.co’s Property Value Tool to get an estimate for free.
If you’re looking for your dream home, be it as a first-time or seasoned homebuyer or seller – say, to upgrade or right-size – you will find it on Singapore’s fastest-growing property portal 99.co.
Meanwhile, if you have an interesting property-related story to share with us, drop us a message here — and we’ll review it and get back to you.
Join our social media communities!
Facebook | Instagram | TikTok | Telegram | YouTube | Twitter
How is my AV calculated if I were to own a private property but I do not stay there, and instead I stay in a rented HDB flat or with relatives in their HDB flat. My address is listed as the HDB address.
Dear officer! I received an email asking for re-submission on my SIRS application , main reason is that I didn’t know what to put on AV section as I’m currently staying in a private condo which belongs to my god sister who is kind enough to put me up in her guest room since last year Jun with RENTAL FREE arrangement as I’m in financial difficulties ( I hv been renting other apartment before then) & she will let me stay till I can make enough income to rent another place. At the moment is a transition period for me… & I don’t own any property, so what should I put on the application form? Please advise! Tks!
During the renovation of my landed property (I cannot live there till TOP) do I pay owner occupied tax?