The HDB Annual Value is the approximated gross yearly hire a property could command if it have been rented out, excluding furniture, furnishings, and maintenance costs. This price, based on the Inland Earnings Authority of Singapore (IRAS), is a crucial factor in calculating the annual house tax and isn't dependant on the flat's market sale cost. IRAS testimonials the Yearly Worth of all Houses on a yearly basis, considering the market read more rentals of similar or comparable Qualities inside the vicinity, together with the residence's dimensions, locale, and ailment. Just how the Once-a-year Benefit is decided stays the exact same irrespective of whether the flat is proprietor-occupied, vacant, or rented out. Home tax is then calculated by multiplying the Annual Value by the prevailing tax rate, that is progressive and varies significantly concerning operator-occupied and non-proprietor-occupied Qualities. For owner-occupied HDB flats, tax rates are significantly decreased to stimulate residence ownership.