Annual Value (AV) of Property in Singapore
The number that decides how much property tax you pay — and how IRAS calculates it.
Answer: Annual Value (AV) is the estimated annual rent your property could earn. IRAS uses AV to calculate your property tax. For owner-occupied homes, the first $8,000 of AV is tax-free. A condo with AV of $36,000 pays about $1,440/year in property tax (owner-occupied). The same condo rented out (non-owner-occupied) pays about $4,320/year. AV is reviewed annually and may change with the rental market.
What Exactly Is Annual Value?
Think of AV as the answer to: “How much rent could this property earn in a year?” IRAS assesses this based on comparable rental transactions — not what you actually charge, but what the market would pay.
Important distinction: AV is not the property's market value. A $1,500,000 condo might have an AV of $36,000 (roughly $3,000/month rent). AV tracks the rental market, not the sales market.
Typical AV by Property Type
| Property Type | Typical AV Range | Implied Monthly Rent |
|---|---|---|
| 3-room HDB | $9,600–$16,800 | $800–$1,400 |
| 4-room HDB | $14,400–$24,000 | $1,200–$2,000 |
| 5-room HDB | $18,000–$30,000 | $1,500–$2,500 |
| Condo (2-bed) | $30,000–$48,000 | $2,500–$4,000 |
| Condo (3-bed) | $36,000–$66,000 | $3,000–$5,500 |
| Landed (terrace) | $36,000–$72,000 | $3,000–$6,000 |
| Landed (bungalow) | $72,000–$180,000+ | $6,000–$15,000+ |
AV varies significantly by location. Central area properties have higher AV than suburban equivalents.
From AV to Property Tax
Property tax is calculated by applying progressive tax rates to your AV. The rates differ depending on whether the property is owner-occupied or non-owner-occupied (investment/rented out).
Owner-Occupied Tax Rates (2024 onwards)
| AV Bracket | Tax Rate |
|---|---|
| First $8,000 | 0% |
| Next $22,000 ($8,001–$30,000) | 4% |
| Next $10,000 ($30,001–$40,000) | 6% |
| Next $15,000 ($40,001–$55,000) | 10% |
| Next $15,000 ($55,001–$70,000) | 14% |
| Next $15,000 ($70,001–$85,000) | 20% |
| Next $15,000 ($85,001–$100,000) | 26% |
| Above $100,000 | 32% |
Non-Owner-Occupied Tax Rates (2024 onwards)
| AV Bracket | Tax Rate |
|---|---|
| First $30,000 | 12% |
| Next $15,000 ($30,001–$45,000) | 20% |
| Next $15,000 ($45,001–$60,000) | 28% |
| Above $60,000 | 36% |
Property Tax Examples
Example 1: 4-Room HDB (AV $18,000, Owner-Occupied)
| AV Portion | Rate | Tax |
|---|---|---|
| First $8,000 | 0% | $0 |
| Next $10,000 | 4% | $400 |
| Total (AV $18,000) | $400/year |
Example 2: Condo (AV $36,000, Owner-Occupied)
| AV Portion | Rate | Tax |
|---|---|---|
| First $8,000 | 0% | $0 |
| Next $22,000 | 4% | $880 |
| Next $6,000 | 6% | $360 |
| Total (AV $36,000) | $1,240/year |
Example 3: Same Condo (AV $36,000, Rented Out)
| AV Portion | Rate | Tax |
|---|---|---|
| First $30,000 | 12% | $3,600 |
| Next $6,000 | 20% | $1,200 |
| Total (AV $36,000) | $4,800/year |
Same AV, same condo — but renting it out costs $3,560 more per year in property tax. This is a key cost to factor into rental yield calculations.
How to Check Your Property's AV
Factor property tax into your total costs
Property tax is an ongoing annual cost. Include it when calculating your total cost of ownership alongside mortgage, maintenance fees, and insurance.
Affordability CalculatorFAQ
What is Annual Value (AV)?
Annual Value (AV) is the estimated gross annual rent your property could earn if it were rented out, based on comparable rental transactions in the area. IRAS (Inland Revenue Authority of Singapore) determines AV and uses it as the basis for calculating property tax. AV is NOT the market value of your property — it is the annual rental value.
How does IRAS determine the AV of my property?
IRAS assesses AV based on estimated market rent of comparable properties in the vicinity. They consider factors like location, property type, size, condition, and recent rental transactions. IRAS reviews and may revise AV annually. You can check your property’s AV on the IRAS website or your property tax bill.
Can I dispute my property AV?
Yes. If you believe your AV is too high, you can object within 30 days of receiving the Notice of Annual Value. Provide evidence such as: your actual rental income (if rented), comparable rental transactions, or a professional valuation. File the objection through the IRAS myTax Portal. IRAS will review and may adjust the AV.
How often does AV change?
IRAS reviews AV annually and may revise it based on rental market changes. In a rising rental market, your AV (and therefore property tax) will increase. In a falling market, AV may decrease. Major renovations or en bloc potential can also cause AV revisions. You will receive a Notice of Annual Value if your AV changes.
Does AV affect anything besides property tax?
Yes. AV is also used to determine eligibility for certain government schemes. For example, the Service & Conservancy Charges (S&CC) rebate, U-Save utility rebates, and some community assistance schemes use AV as a means test. Higher AV generally means lower rebates. AV also affects the annual licence fee for home-based businesses.
Related
Last updated Feb 2026. Property tax rates effective from 1 Jan 2024 per IRAS. AV ranges are estimates based on market data. This is informational, not tax advice. Check iras.gov.sg for official rates.