Every property owner in Singapore receives an annual property tax bill from IRAS. Yet most homeowners pay without fully understanding what drives the number. Annual Value is the engine behind the calculation, and a working knowledge of how AV is set and how tax rates apply to it puts you in a position to verify your bill, identify errors, and appeal where warranted.

This guide covers everything you need to know: what Annual Value is, how IRAS arrives at it, the full 2026 progressive rate schedules for both owner-occupied and non-owner-occupied properties, step-by-step calculation method, and how to challenge an AV you believe is too high.

1. What Is Annual Value?

Annual Value is defined under the Property Tax Act as the gross amount at which a property can reasonably be expected to let from year to year if the tenant pays all maintenance and repair costs and the landlord pays insurance and property tax. In plain terms: it is the estimated annual rent for the property unfurnished, excluding maintenance fees, furniture, and fittings.

Three common misconceptions are worth clearing up:

• AV is not the property’s market value. A $2 million condominium may have an AV of only $38,000 because AV tracks rental value, not sale price.
• AV is not the actual rent you charge. If your actual rent differs from the market norm, IRAS uses market comparables instead.
• AV does not include furniture or service charges. These are stripped out before AV is set.

For HDB flats, AVs are generally modest: a 4-room flat in a mature estate might carry an AV of $12,000 to $20,000. A private condominium in the Core Central Region can carry an AV exceeding $60,000. Landed properties in prime districts can exceed $150,000.

2. How IRAS Determines Your AV

IRAS uses a market-comparables method. Its assessors examine actual rental transactions for properties similar to yours in type, size, location, floor level, age, and condition. For HDB flats, IRAS draws on HDB rental data. For private residential properties, it references URA rental transaction records.

The key steps IRAS follows:

1. Identify comparable rentals. IRAS looks at recent rental contracts for properties closely matching yours in the same estate or neighbourhood.
2. Adjust for differences. If comparables are on a higher floor or are newer, IRAS adjusts the reference rent downward for your property.
3. Strip out non-qualifying components. Furniture, air-conditioning units, and service charges are excluded. Only the bare unfurnished rent counts.
4. Set the AV. The result is expressed as an annual figure and takes effect from 1 January of the relevant year.

IRAS reviews AVs annually. When market rents rise significantly, AV revisions follow. When market rents soften, AVs can be revised downward. You will receive a Revised Notice of Annual Value when IRAS changes your property’s AV.

3. Property Tax Rates 2026

Singapore uses a progressive property tax system with separate rate schedules for owner-occupied (OO) and non-owner-occupied (NOO) residential properties. Industrial, commercial, and non-residential properties are subject to a flat 10% rate, which this guide does not cover.

3a. Owner-Occupied Residential Rates (effective from 1 January 2023)

You qualify for OO rates if the property is your primary residence and you have applied for the owner-occupier tax concession at IRAS. OO rates are significantly lower than NOO rates at all AV levels.

3b. Non-Owner-Occupied Residential Rates (effective from 1 January 2024)

NOO rates apply to all residential properties that are rented out, left vacant, or used as a second home where no OO concession has been applied for. The rates are substantially higher and were raised as part of a broader property cooling package.

4. How to Calculate Your Property Tax

The calculation is progressive: each portion of AV falling within a band is taxed at that band’s rate. Sum the results across all bands to get your total annual tax.

Step 1: Find your AV

Log in to myTax Portal and navigate to “View My Property” to see your current AV. Your annual property tax bill also states the AV used.

Step 2: Determine OO or NOO status

If you live in the property and have applied for the owner-occupier concession (or it was applied automatically for your HDB flat), use OO rates. Otherwise use NOO rates. You can claim OO status for only one residential property.

Step 3: Apply the progressive rates band by band

Start from the lowest band and work upward. The first $8,000 of AV is taxed at 0% (OO), the next slice at 4%, and so on. Each band applies only to the AV that falls within it.

5. Worked Examples

6. AV Review and Appeals

IRAS reviews all property AVs at least annually. When market rents move significantly, your AV may be revised. You have the right to object if you believe the new AV is incorrect.

Grounds for Objection

You should have evidence that the AV is set higher than the market rent for comparable unfurnished properties in your area. The strongest evidence is actual rental comparables: lease agreements or rental transaction data from URA or HDB showing similar units renting for less.

Objection Process

1. File within 30 days of the date on the Revised Notice of Annual Value. Late objections are generally not accepted.
2. Submit via myTax Portal. Log in, navigate to “Object to Annual Value”.
3. Provide comparables. Upload lease agreements, HDB or URA rental transaction records for similar nearby units.
4. IRAS reviews and decides. IRAS will uphold the AV, revise it downward, or request additional information.
5. Escalate to the Valuation Review Board (VRB) if IRAS rejects your objection. You have 30 days from IRAS’s refusal to file with the VRB.

7. How to Reduce Your Property Tax Bill

Claim the Owner-Occupier Concession

If you live in your private property and have not yet applied for the concessionary OO rates, do so via myTax Portal. HDB occupiers are generally applied OO rates automatically, but private property owners must actively apply. You can claim OO status for only one residential property at a time.

Monitor Your AV Annually

When market rents fall, your AV should be revised downward. If you have not received a revised notice but believe rents in your area have dropped materially, write to IRAS to request a review with supporting rental comparables.

Consider Your Rental Arrangements

If you rent out only a room within your owner-occupied HDB flat (permitted under HDB rules subject to quotas), the OO concession still applies to the whole flat. Only when the flat is fully rented out does NOO status apply. Plan accordingly when making rental decisions.

Use GIRO to Spread Payments

Property tax cannot be reduced by payment method, but GIRO instalments spread the cash flow impact across the year without penalty. New GIRO arrangements can be set up on myTax Portal at any time.

8. Frequently Asked Questions