Annual Value (AV) is IRAS’s estimate of the gross yearly rent a property would fetch if it were let, excluding furniture, furnishings and maintenance fees. It is assessed from the rents of comparable properties, not from the rent actually received, and it is the base on which property tax is charged.
Key takeaways
- The AV of a building is the estimated gross annual rent it would fetch if let, excluding furniture, furnishings and maintenance fees, and is set from the rents of similar or comparable properties rather than from the rent the owner actually receives.
- Every residential property has an AV and property tax is payable on it whether the home is owner-occupied, vacant or rented out.
- The AV of vacant land and land under construction is 5% of the estimated freehold market value; properties that are rarely rented — refineries, petrochemical and power plants — may be assessed by a statutory formula, and hotels and ports by the Statutory Gross Receipts Method.
- IRAS reviews AVs yearly against market rents and revises one where the latest rental data no longer supports it, or from the date of a physical change that materially affects rental value; owners are told by a Valuation Notice.
- An owner can see the current year and the past four years of their own AV free through View Property Summary, check any property for SGD 2.50 a search, and object to an assessment, with a right of appeal if the objection is disallowed.
How IRAS arrives at an Annual Value
AV is a valuation, not a record of what was paid. IRAS looks at what comparable properties actually rent for and applies that evidence to the property being assessed, which is why an owner-occupied home and an identical one next door that is let carry the same AV.
Because AV is the base, it decides both the rate band and the tax: under owner-occupier rates the first SGD 12,000 of AV is charged at 0%, and each band above it is charged only on the slice of AV inside it. AV is also the means test behind several government schemes, including the GST Voucher.
What an AV of SGD 36,000 produces
If comparable units in a development let for about SGD 3,000 a month, a similar unit may be assessed at roughly SGD 36,000 a year. The same AV then produces three different bills depending on use.
| Property | How the AV is set | Evidence used |
|---|---|---|
| A home that is rented out or vacant | estimated gross annual market rent | comparable rents |
| A home the owner lives in | the same — actual rent is irrelevant | comparable rents |
| Vacant land or land under construction | 5% of estimated freehold market value | capital value |
| Refineries, petrochemical and power plants | statutory formula (rarely rented) | capital value |
| Hotels and ports | Statutory Gross Receipts Method | receipts |
Tax on an AV of SGD 36,000
The AV figure here is illustrative — IRAS assesses each property from the rental evidence for that property. The property tax calculator works from whatever AV appears on the bill.
Where the AV decides something
Five things people get wrong
- IRAS — About Annual Value — how AV is determined for buildings, land and specialised property; review and objection
- IRAS — Property Tax Rates — the rates applied to the AV
- IRAS — 2026 Property Tax Bill — the bill the AV produces and when it is due
Official statistics for general information only. Not financial advice.
This page is provided for educational and informational purposes only. It does not constitute financial advice. All figures and worked examples are estimates for illustrative purposes, are subject to change, and do not reflect any individual’s circumstances. Always refer to IRAS and seek independent professional advice before making any financial decisions.