Annual Value (AV) is IRAS's estimate of the gross annual rent a property could command if let out — excluding furniture and maintenance fees — and it is the sole basis on which Singapore property tax is calculated every year. Owner-occupied homes benefit from lower progressive rates, while investment or rented-out properties face higher non-owner-occupier rates. AV is reviewed annually and is also used as an eligibility threshold for several government rebates and housing schemes (as of 2026-06).
Most Singapore homeowners know they pay property tax each year — but far fewer understand exactly what that bill is based on. It is not your purchase price, not your outstanding loan, and not the current market valuation your bank uses. It is a figure called Annual Value (AV), quietly determined by IRAS behind the scenes, and it has a direct, compounding effect on your holding cost every single year you own the property. When the government revised the property tax rate tables in Budget 2022 and again in Budget 2023 (with the higher rates fully phased in by 2024), AV-linked tax bills rose sharply for investors and selectively for high-value owner-occupied homes. Understanding how AV is set, how it maps to your tax band, and what you can do about it is one of the most underrated tasks in property financial planning in Singapore (as of 2026-06).
What Annual Value Actually Means
IRAS defines Annual Value as the estimated gross annual rent the property would fetch if it were rented out on the open market — before deducting expenses such as furniture, furnishing, maintenance fees, and service charges. It is a hypothetical rental figure, not a transacted price, and not the actual rent you collect if you do rent the property out. For a private condominium unit, IRAS derives AV from comparable rental transactions for similar properties in the same area and period. For HDB flats, IRAS similarly references prevailing HDB rental market data. For landed properties, the methodology accounts for land size, location, and lettable area benchmarks.
Why AV Is Not Your Purchase Price or Valuation
Many owners make the mistake of assuming that a higher purchase price automatically means a higher AV, or that AV tracks the resale market. In practice, AV is anchored to rental yields, not capital values. A district where rents have stayed flat despite soaring prices will see a lower AV relative to transaction price than a district where both prices and rents have climbed in tandem. This disconnect matters: it means two properties bought at the same price in different districts can carry very different annual tax bills, purely because of rental market dynamics in that micro-location. Use the rental yield map to compare estimated rental benchmarks across districts — the spread in rental yield is a reasonable proxy for how IRAS would calibrate AV differences across locations.
AV as an Eligibility Threshold
Beyond tax, AV is used as an income/asset proxy for several government housing schemes and rebates. Eligibility for the GST Voucher – U-Save utility rebate, certain HDB housing grants, and property tax rebates during special Budget measures are all gated by AV thresholds. IRAS and HDB periodically announce AV cut-offs (for example, a property with AV not exceeding S$21,000 qualified for certain rebates in recent Budget cycles). Owners of investment properties with higher AVs are typically excluded from these means-tested support measures (as of 2026-06).
What Does It Mean?
Annual Value (AV)
Annual Value (AV) is the estimated gross annual rent a property can reasonably command if it were rented out, as assessed by IRAS. AV is used to determine property tax payable and is reviewed annually.
Property Tax Rate
Property tax rates in Singapore are progressive and vary by occupancy: owner-occupied residential rates range from 0% to 32%, while non-owner-occupied rates range from 12% to 36% of AV.
Current Rates
Owner-Occupied Residential Rates (from 1 Jan 2025):
| AV Band | Rate |
|---|---|
| First $12,000 | 0% |
| Next $28,000 | 4% |
| Next $10,000 | 6% |
| Next ,000 | 10% |
| Next ,000 | 14% |
| Next $15,000 | 20% |
| Next ,000 | 26% |
| Above $140,000 | 32% |
Non-Owner-Occupied Residential Rates:
| AV Band | Rate |
|---|---|
| First $30,000 | 12% |
| Next $15,000 | 20% |
| Next $15,000 | 28% |
| Above $60,000 | 36% |
Worked Example
A condo with AV of $36,000 (estimated annual rent of $3,000/month):
Non-owner-occupied properties pay significantly more property tax. This is a major cost for investment properties.
Why It Matters
Property tax is the single largest recurring cost for investment properties. A non-owner-occupied condo with AV of $36,000 pays about $5,500/year — this directly reduces your net rental yield.
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How Property Tax Is Computed from AV
Property tax is calculated as: Property Tax = AV x applicable tax rate. The rate is not flat — it is progressive, meaning different portions of the AV are taxed at increasing rates, similar in structure to personal income tax. IRAS maintains two separate rate tables: one for owner-occupied residential properties (where you live in the home) and a higher set for non-owner-occupied residential properties (investment, rented out, or vacant). Non-residential properties (commercial, industrial) use a flat rate of 10% on AV (as of 2026-06).
Owner-Occupier Progressive Rates (as of 2026-06)
Under the owner-occupier rate structure, the first S$8,000 of AV is taxed at 0%, meaning most HDB flat owners with modest AVs pay zero or very low property tax. The rates then step up progressively. Based on the IRAS property tax rate table (fully phased in from 2024), the bands are approximately: AV up to S$8,000 at 0%; S$8,001 to S$30,000 at 4%; S$30,001 to S$40,000 at 6%; S$40,001 to S$55,000 at 10%; S$55,001 to S$70,000 at 14%; S$70,001 to S$85,000 at 20%; S$85,001 to S$100,000 at 26%; above S$100,000 at 32%. Always verify current bands directly on the IRAS property tax rates page as these may be updated in subsequent Budgets (as of 2026-06).
Non-Owner-Occupier Rates (as of 2026-06)
For investment properties — including private condos that are rented out, left vacant, or owned as a second or subsequent property — the non-owner-occupier progressive rates are significantly higher. The first S$30,000 of AV is taxed at 12%; S$30,001 to S$90,000 at 20%; above S$90,000 at 32%. This means a condominium with an AV of S$48,000 (a plausible figure for a two-bedroom unit in a mid-tier district, as of 2026-06) that is rented out would generate an annual property tax of approximately S$9,600, compared to roughly S$1,680 under the owner-occupier schedule. The gap is substantial and must be factored into any buy-to-let cash flow model. Use the total cost of ownership calculator to incorporate annual property tax into your long-run holding cost projection alongside mortgage repayments, maintenance fees, and stamp duty amortisation.
How IRAS Notifies and Reviews AV
IRAS sends out Property Tax Notices — typically in December or January each year — stating your property's AV for the coming year and the resulting tax payable. If your property's AV has been revised upward (because comparable rents have risen), the notice will reflect the new AV. If you believe the AV is excessive, you have the right to file an Objection to the Notice of Annual Value within 30 days of the notice date. You must provide supporting evidence — such as rental comps for similar units in the same development — to substantiate a lower AV. IRAS will consider the evidence before issuing a determination. The full objection procedure is detailed on the IRAS objection to Annual Value page. Successfully lowering AV reduces not only the immediate year's tax but all subsequent years until the next review (as of 2026-06).
AV and Recent Budget Changes
Singapore's government announced a structural revision to property tax rates in Budget 2022, with the new rates phased in over 2023 and 2024. The stated intent was to make the property tax system more progressive — shielding mass-market and HDB homeowners while increasing the tax burden on high-value owner-occupied and investment properties. For investors with multiple properties, the combined effect of rising AVs (tracking rental market increases from 2021–2023) and higher rate bands meant significantly larger annual tax obligations starting from 2024. Budget 2025 did not introduce further rate table changes, but AV reviews continued to reflect prevailing rental data. Rental market softening in certain segments in 2024–2025 may result in AV adjustments downward for some property types at the next review cycle. Always reference the latest IRAS Annual Value guidance page and your most recent tax notice for the figure applicable to your specific property (as of 2026-06).
What Homeowners and Investors Should Do
- Retrieve your current AV immediately. Log in to myTax Portal at mytax.iras.gov.sg and check your property's current AV under the Property Tax section. Knowing the exact figure lets you verify your tax bill arithmetic and identify whether an objection is warranted.
- Verify the correct tax schedule applies. If you live in the property, confirm IRAS has you registered as owner-occupier — incorrect classification results in the higher non-owner-occupier rate being applied. Contact IRAS to update your occupancy status if necessary before the next notice is issued.
- File an AV objection if comparables support a lower figure. Gather recent rental transaction data for comparable units in your development or street (available via URA's rental transaction records on the URA website). If the evidence supports a lower AV, file within 30 days of the notice date. Even a S$5,000 AV reduction on a non-owner-occupied property can save S$600 to S$1,000 per year in tax.
- Factor AV-linked tax into investment yield calculations. Many investors underestimate holding costs by omitting property tax. Use the total cost of ownership calculator to model the annual tax impact across different AV scenarios and check whether a target rental yield still holds after tax.
- Compare rental yield benchmarks across districts before buying. Higher-yielding districts typically have higher AV relative to price, which translates to higher annual property tax. Use the rental yield map to compare yield and AV dynamics across Singapore's districts before committing to a purchase.
- Track AV threshold changes for grant and rebate eligibility. If you own an HDB flat or lower-value private property, your AV may fall within the threshold for government rebates such as U-Save and property tax rebate announcements. Review your AV each year against any Budget-announced thresholds to ensure you claim applicable rebates.
- For inherited or gifted properties, reassess occupancy status. Changing from owner-occupier to non-owner-occupier — even temporarily — triggers the higher tax rate from the date the property is no longer owner-occupied. Notify IRAS promptly to avoid penalty interest on underpaid tax.
Frequently Asked Questions
How is AV determined?
Can I appeal my AV assessment?
Is Annual Value the same as my property's market value or purchase price?
No — Annual Value has no direct relationship to your purchase price or current market value. AV is IRAS's estimate of the gross annual rent the property could command on the open market, excluding furniture, furnishings, and maintenance fees. A property bought for S$2 million may carry a lower AV than one bought for S$1.5 million if it is in an area where comparable rents are lower. AV is a rental-market estimate, not a capital value figure (as of 2026-06).
What is the difference between owner-occupier and non-owner-occupier property tax rates?
Owner-occupier rates are significantly lower and start at 0% on the first S$8,000 of AV, rising progressively to 32% on AV above S$100,000. Non-owner-occupier rates start at 12% on the first S$30,000 of AV and reach 32% above S$90,000. For a typical private condominium with an AV of S$48,000, the annual tax under owner-occupier rates is roughly S$1,680 versus approximately S$9,600 under non-owner-occupier rates — a difference of nearly S$8,000 per year. The distinction therefore has a major impact on investment property cash flow (as of 2026-06).
This glossary article is auto-generated from ShiokNest's financial data and updated periodically. Rates and figures are current as of March 2026. Check official sources for the latest.