The HDB Yearly Value is the estimated gross annual rent a house could command if it were rented out, excluding furniture, furnishings, and servicing expenses. This price, based on the Inland Profits Authority of Singapore (IRAS), is a vital Consider calculating the annual house tax and is not based upon the flat's current market sale cost. IRAS evaluations the Annual Price of all Houses every year, considering the industry rentals of comparable or similar properties in the read more vicinity, as well as the assets's measurement, area, and condition. How the Annual Benefit is determined continues to be the exact same regardless of whether the flat is operator-occupied, vacant, or rented out. Residence tax is then calculated by multiplying the Annual Worth through the prevailing tax charge, which can be progressive and may differ substantially concerning owner-occupied and non-proprietor-occupied Attributes. For owner-occupied HDB flats, tax costs are significantly reduce to really encourage house ownership.