The HDB Annual Value could be the believed gross annual lease a residence could command if it were rented out, excluding home furniture, furnishings, and routine maintenance fees. This worth, determined by the Inland Income Authority of Singapore (IRAS), is a vital Think about calculating the once-a-year assets tax and is not according to the flat's market place sale selling price. IRAS reviews the Annual Value of all Qualities each year, bearing in mind the industry rentals of comparable or similar Houses during the vicinity, along with the home's dimension, area, and problem. The best way the Yearly Worth is determined remains the same regardless of whether the flat get more info is operator-occupied, vacant, or rented out. Residence tax is then calculated by multiplying the Yearly Worth through the prevailing tax charge, that's progressive and varies considerably in between owner-occupied and non-operator-occupied Houses. For proprietor-occupied HDB flats, tax prices are substantially lessen to persuade household ownership.