Annual Value of Property in Singapore Guide: The Magic Number for Government Support and Property Tax
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Annual Value of Property in Singapore Guide: The Magic Number for Government Support and Property Tax

Joel Koh
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When it comes to property tax and government support in Singapore, there is one common magic number that the Singapore Government looks at.

The Annual Value (AV) of the residential property you are living in.

Generally, the Singapore Government views AV and Assessable Income (AI) as the main indicators to ‘measure’ how well off you are financially.

AV is used instead of flat types as it is a more accurate representation of how much the property is worth and serves as a proxy for the individual or household’s wealth.

These numbers and other eligibility criteria, determine how much government support you’ll get and how much property tax you need to pay.

In principle, these indicators are a form of means-testing that the Singapore Government uses to ensure that the aid is going to those who need it most.

Taylor Switft Mean
Source: Giphy

Government support schemes like the longstanding GST Voucher scheme and the recently announced Self-Employed Person Income Relief Scheme (SIRS) use AV and assessable income as an indicator.

Your annual property tax is calculated using the AV as well.

This is why it’s important that everyone knows the AV of the residential property that you are either living in, renting or owning.

This is to ensure that you know what government support schemes you are eligible for and get a handle on the property tax you need to pay.


Well I’m glad you asked.

Contrary to popular belief, the Annual Value of residential property in Singapore is not based on the actual rental income you personally receive from renting out your home.

Instead, the Inland Revenue Authority of Singapore (IRAS) defines the AV of buildings (inclusive of residential properties) as the ‘estimated gross annual rent of the property if it were to be rented out.’

This amount excludes furniture, furnishings and maintenance fees.

It is determined based on estimated market rentals of similar or comparable properties.

To determine the AV, IRAS evaluates market rentals of similar or comparable properties within your residential property’s area.

IRAS Logo

IRAS will usually update AV prices annually and update owners about any changes made to the property’s AV.

IRAS will also review the property’s AV if there are any physical changes to the property that will affect the property’s rental value.

An important thing to note is that the way AV is determined is the same, regardless of whether the property is occupied by the owner, vacant or rented out.

How to Calculate the Annual Value (AV) of Property in Singapore?

For property owners, the first way is to simply refer to your property tax bill.

IRAS Property Tax Bill Example
Source: IRAS

The property AV can be found on the top lefthand corner.

Property owners can also check the AV of your own residential property for free by logging in to myTax Portal.

Look under Messages > Correspondence & Notices > Property Tax > Letters/Notices.

For non-property owners, you can find the AV of any property registered in Singapore using the Check Annual Value of Property tool.

However, it will cost you $2.50 per request.

Median Annual Value of Homes in Singapore

Otherwise, you can refer to this table with data provided from Data.gov.sg about the Median Annual Value of residential properties for FY2018.

Even though this data is from 2 years ago, it still provides a good indication, as my family home’s annual value was quite close to the numbers found here. Your mileage may vary.

Type of PropertyNumber of HousesMedian Annual Value (SGD)
1 or 2-Room30,391$5,100
3-Room237,734$7,860
4-Room416,389$9,600
5-Room240,537 $10,380
Executive & Others 65,042 $10,680
Non-landed (includes Executive Condominiums)324,556$22,200
Landed75,467$34,200

In other words, most self-employed individuals in HDB flats (even bigger ones) will most likely be eligible for the recently announced Self-Employed Person Income Relief Scheme (SIRS) which excludes individuals whose homes annual value exceed $13,000.

How to Appeal Against the Annual Value (AV) Property Valuation From IRAS?

The AV is not set in stone.

Objection Phoenix Wright
Source: Giphy

If you feel think that IRAS’s valuation of your property’s AV is too damm high, you can file an objection with IRAS.

This can be done anytime if you want to object to your property’s AV in IRAS’ property valuation list.

Otherwise, when your AV is updated and IRAS sends you a Valuation Notice about the AV of your property, you will have to file for an objection within 30 days.

Details about how to file an objection can be found in the link above.

However, if you are still unhappy with IRAS’ judgement after you filed an objection, you can still appeal to the Ministry of Finance.

How does the Annual Value (AV) affect Government Support?

Generally, government support schemes are based on the Annual Value of your residential property or assessable income.

For those schemes that have AV as one of the assessment criteria, your AV will be based on the place of residence registered to your NRIC.

This means that it applies to you whether you are renting or living with your parents.

For those looking to rent a place, you can take this factor into consideration, as the smaller places of residence enjoy the most government support.

How does the Annual Value (AV) Affect the Property Tax Rate?

The AV of your residential property is a huge factor in determining your property tax rate

This is the case as the property tax you need to pay is based on this simple formula:

zach galifianakis math
Source: tenor

Your Property’s Annual Value x Property Tax Rate = Property Tax Payable

How to Calculate the Residential Property Tax Rate?

There are three types of residential property tax rates in Singapore.

One is for the Owner-occupied Property (OOP) tax rate, the Non-owner-occupier Residential tax rates and the residential property tax exclusion tax rate.

Owner-Occupied Property (OOP) Tax Rate (Residential Properties)

Owner-occupied residential properties may be HDB flats, condominiums and other residential properties where the owner lives in (“occupies”) the property.

They enjoy cheaper rates than Non-owner-occupier resident rates.

The following tax rates apply to non-owner occupied properties except for those in the exclusion list.

Owner-Occupier Tax Rates
Annual Value ($)Effective 1 Jan 2015Property Tax Payable
First $8,000
Next $47,000
0%
4%
$0
$1,880
First $55,000
Next $15,000
-
6%
$1,880
$900
First $70,000
Next $15,000
-
8%
$2,780
$1,200
First $85,000
Next $15,000
-
10%
$3,980
$1,500
First $100,000
Next $15,000
-
12%
$5,480
$1,800
First $115,000
Next $15,000
-
14%
$7,280
$2,100
First $130,000
Above $130,000
-
16%
$9,380

Non-owner-occupier Residential Tax Rates (Residential Properties)

Non-owner occupied residential properties can be HDB flats, condominiums and other residential properties.

The occupant does not live in (“occupy”) the property which exempts them from the cheaper owner-occupier tax rates.

Non-owner-occupier Residential Tax Rates
Annual Value ($)Effective 1 Jan 2015Property Tax Payable
First 30,000
Next $15,000
10%
12%
$3,000
$1,800
First $45,000
Next $15,000
-
14%
$4,800
$2,100
First $60,000
Next $15,000
-
16%
$6,900
$2,400
First $75,000
Next $15,000
-
18%
$9,300
$2,700
First $90,000
Above $90,000
-
20%
$12,000

The following tax rates apply to non-owner occupied properties except for those in the exclusion list.

Residential Property Tax Rates Exclusion List

Residential properties on this list will be taxed at 10%.

  • Accommodation facilities within any sports and recreational club
  • Chalet
  • Child care centre, student care centre, or kindergarten
  • Welfare home
  • Hospital, hospice, or place for rehabilitation, convalescence, nursing care or similar purposes
  • Hotel, backpackers’ hostel, boarding house or guesthouse
  • Serviced apartment
  • Staff quarters that are part of any property exempted from tax under s6(6) of the Property Tax Act
  • Student’s boarding house or hostel
  • Workers’ dormitory

For this 10% tax rate to apply, you must have received planning approval for the above use. No application to IRAS is needed.

Otherwise, you can use IRAS’s interactive calculator for you to calculate your own property tax.


There you have it. All you need to know about the Annual Value of property in Singapore and how it affects the government support you get and the property tax you pay.

If you have any other questions about property, feel free to raise them with our friendly Seedly Community!

About Joel Koh
History student turned writer at Seedly. Before you ask, not a teacher. My time as a history student has equipped me with the skills to evaluate the impact societal development has on financial and nonfinancial events, as well as financial transactions and models.
You can contribute your thoughts like Joel Koh here.

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