Annual Value (AV) is IRAS’s estimate of the gross annual rent a property could fetch if it were rented out, excluding furniture, furnishings and maintenance fees, and it is the base on which property tax is charged.
Key takeaways
- AV is assessed from estimated market rentals of similar or comparable properties, not from the rent actually received.
- Every property has an AV, and property tax is payable on it whether the property is owner-occupied, rented out or vacant.
- The AV of land and development sites is set at 5% of the estimated freehold market value, for both vacant land and land under construction.
- IRAS reviews AVs yearly against market rental data and issues a Valuation Notice when an AV is revised.
- Under owner-occupier rates the first SGD 12,000 of AV is taxed at 0%, so AV determines both the rate band and the tax payable.
See how this applies to your own figures.
Singapore Property Tax Calculator →How IRAS assesses AV
For buildings, the AV is the estimated gross annual rent of the property if it were rented out, excluding furniture, furnishings and maintenance fees. It is derived from estimated market rentals of comparable properties rather than from the actual rental income received, so an owner-occupied home and an identical rented unit next door can carry the same AV. In assessing the AV of a building, IRAS looks at:
- rentals of similar or comparable properties in the vicinity
- the size of the property
- the location of the property
- the condition of the property
- other relevant physical attributes
AV of land and specialised properties
The AV of land and development sites, whether vacant or under construction, is determined at 5% of the estimated freehold market value. Specialised properties that are rarely rented out, such as refineries and power plants, may be assessed under a statutory formula at 5% of the freehold capital value, or by other valuation methods. Hotels and ports are assessed using the Statutory Gross Receipts Method.
How AV is reviewed and checked
IRAS reviews AVs yearly to reflect changes in the market rental values of comparable properties, and revises an AV where the latest rental data no longer supports it. A physical change that materially affects rental value can also trigger a revision from the date of the change. Owners are notified by a Valuation Notice, and the AV for the current year and up to the past four years can be checked through the View Property Summary digital service.
Key Annual Value figures
| Item | Figure |
|---|---|
| Basis for buildings | estimated gross annual market rent |
| AV of land and development sites | 5% of estimated freehold market value |
| AV of specialised properties (statutory formula) | 5% of freehold capital value |
| Owner-occupier nil-rate band (from 1 Jan 2025) | first SGD 12,000 of AV |
| AV history available online | current year plus up to the past four years |
Figures as at 2026. Source: IRAS.
Worked example
If comparable units in a development rent for around SGD 3,000 a month, the AV of a similar unit may be assessed at roughly SGD 36,000 a year. Property tax is then charged on that assessed AV rather than on the rent actually collected. The AV IRAS assesses depends on the rental evidence for the specific property.
Related terms
All Singapore glossary terms →Related calculator
Estimate annual property tax from a property’s Annual Value using the IRAS rate bands.
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.