Your search results

Calculating Your Property’s Annual Value in Singapore 2024: A Simple Guide!

Posted by Jayson Ang on December 15, 2024

| 0

TLDR

Understanding your property’s annual value is crucial for determining property taxes in Singapore. The annual value is based on the estimated gross annual rent, excluding furniture and maintenance fees. You can check this value via the IRAS website using SingPass. Property tax rates differ for owner-occupied and non-owner-occupied properties. For owner-occupied homes, rates range from 0% to 32%, depending on the property’s annual value. Non-owner-occupied properties have higher rates, starting at 12%. The annual value also affects eligibility for schemes like the GST Voucher. For property owners, staying informed about these values and tax rates is essential for financial planning.

As a proud property owner, understanding the annual value of your asset is essential. This is because property taxes in Singapore are calculated based on this value. Even if you’re not currently a homeowner, there may come a time when you too will need to pay these taxes.

Therefore, it is crucial to familiarize yourself with the process of determining your property’s annual value. And with the recent Budget 2024 announcement of reduced property tax rates, the news couldn’t be better for all property owners.

In fact, we’re here to guide you through the latest tax rates and how to easily access your property’s annual value in Singapore. And if you’re curious about the current value of your property, our innovative property valuation tool can provide you with an accurate estimate. Stay informed and make the most of your property ownership journey!

Annual Property Value in Singapore: A Comprehensive Guide

What does annual value mean?	It is the estimated gross annual rent that you can rent your property out for (excluding furniture, furnishings, and maintenance fees)
How to check the annual value of a property?	Log in with your SingPass via the IRAS website
How does IRAS calculate property annual value?	IRAS’s five considerations for determining annual value: – Rentals of similar properties in the area – Property size – Property location – Property condition – Other relevant physical attributes
How to calculate the annual value of your property on your own?	You can make an estimate based on the property rentals around your area

Property Annual Value and Its Tax Implications

Many people mistakenly believe that the worth of a property in Singapore is directly linked to its valuation. However, this is far from the truth. In fact, the property’s annual value, as defined by the IRAS, is a completely separate entity. It refers to the estimated annual rent of the property, excluding any additional expenses for furniture, furnishings, and maintenance fees.

While this may seem like a simple concept, the key word here is “estimated”. The government is not concerned with the actual rental income you receive, but rather with the perceived value of the property in the market.

This means that even if you rent out your property at a lower rate than the average market price, your annual value will remain the same as other similar properties. As a result, you will still be subject to the same amount of property tax.

To get a better understanding of the property tax rates, you can refer to this resource. Keep in mind, however, that the rates for non-owner-occupied properties are significantly higher compared to owner-occupied ones. This applies to both HDB flats and private properties alike.

How to Check the Annual Value of Property in Singapore

With the IRAS holding the final say on the annual value of your property, it serves as the ultimate authority to consult. Don’t waste time searching elsewhere; just head over to myTax Portal and use your SingPass to easily access your property’s annual value. Keep track of the current year and the past five years whenever it suits you.

But the benefits don’t end there – annual values can also offer insight into rental rates for a particular area, aiding in your decision-making process for renting or purchasing. And if you’re curious about other properties, the portal allows you to retrieve their annual values for a nominal fee of $2.50 per search.

But fret not, you can still obtain general annual value statistics for free through online resources. And let’s just say, the contrast between private properties and HDB flats is quite eye-opening.

Thankfully, IRAS simplifies things by providing a comprehensive breakdown of property tax based on annual value for owner-occupied residential properties. Whether you reside in an HDB flat, condo, or any other residential property, this applies to you. Let IRAS take the wheel and guide you through the realm of property taxes.

Owner-Occupier Tax Rates in Singapore (2024)

Annual value for owner-occupied residential properties	Property tax rate effective 1 January 2024
First $8,000	0%
Next $22,000	4%
Next $10,000	6%
Next $15,000	10%
Next $15,000	14%
Next $15,000	20%
Next $15,000	26%
Above $100,000	32%

Source: IRAS

“Like a seesaw, the higher your annual value, the heavier the tax burden. But fear not, dear HDB-dwelling Singaporeans, for your average property value keeps you safely on the lower end of the scale.

In the grand unveiling of Budget 2022, a “wealth tax” loomed over the horizon. However, with rental demand and prices soaring to new heights, the annual value of properties in Singapore rose accordingly. This prompted the much-needed revision in Budget 2024, as the weight of property taxes for owner-occupied residences doubled in response to the dramatic increase.”

Owner-Occupier Tax Rates In Singapore (2025)

Annual value for owner-occupied residential properties	Property tax rate effective 1 January 2024
First $12,000	0%
Next $28,000	4%
Next $10,000	6%
Next $25,000	10%
Next $10,000	14%
Next $15,000	20%
Next $40,000	26%
Above $140,000	32%

Source: IRAS

Non-Owner-Occupier Tax Rates

Annual value for non-owner-occupied residential properties	Property tax rate effective 1 January 2024
First $30,000	12%
Next $15,000	20%
Next $15,000	28%
Above $60,000	36%

Source: IRAS

The property tax rate for unoccupied properties may be subject to slight variations, as seen in the latest Budget 2024 announcements. However, determining the non-owner-occupier tax rates can be a bit of a puzzle. While rental data for similar properties in the vicinity is readily available, the challenge lies in accurately estimating expenses for furniture, furnishings, and maintenance.

For instance, you may consult PropertyGuru’s rental listings and find that comparable units are leasing for $3,000 per month. However, your estimated allowance of $1,000 for furniture, furnishings, and maintenance is deemed unreasonable by the Inland Revenue Authority of Singapore (IRAS). Instead, they inform you that the annual value of your property is $30,000, with an allowance estimate of only $500 per month.

If you disagree with the government’s assessment, fear not. You can easily file an objection through the myTax portal, ensuring to include the Notice Number from your latest property tax notice.

Do keep in mind, however, that while the first objection is free, subsequent appeals to the Valuation Review Board will incur a fee of $50 (for owner-occupied properties) or $200 (for non-owner-occupied properties) each time. Hence, only owners of commercial or industrial properties are likely to pursue such appeals.

Other Uses of Property Annual Value (That Don’t Involve Paying Money)

The annual value of your property may seem like a mere determinant of your property taxes, but as we highlighted earlier, its impact goes beyond that. In fact, the government also takes into consideration this value as a reflection of your financial status, opening up opportunities for various incentives to come your way.

For instance, the esteemed GST Voucher Scheme caters to individuals with assessable incomes up to $34,000 and homes with an annual value not exceeding $25,000, making it a beneficial boost for eligible citizens.

Should You Buy, Sell or Wait?

If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?

It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.

I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.

I can help you by:

Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.

You May Also Like …

All Blog Posts Buying Tips

Learn the Essentials of Renting Property in Singapore as a Foreigner

Jayson Ang – May 26, 2023 –

TLDR Renting in Singapore offers various options for foreigners, such as HDBs, Condos, and even unique properties like heritage homes....

Mandarin Top 5

Top 5 Reasons : Why Investing In Singapore’s Property Market Is Recession-Resistant

Jayson Ang – August 15, 2024 –

Singapore's property market has long been considered a safe haven for investors, even during times of economic uncertainty. The city-state's...

All Buying Tips

It Seems Like Less Folks Living In HDB Flats Are Chasing After The Dream Of Owning A Condo

Jayson Ang – March 21, 2024 –

TLDR The Singapore property market is experiencing a decline in condo purchases by HDB flat owners due to multiple property...

Mandarin Top 5

Top 5 : Singapore’s Most Desirable Properties: A Look at the City’s Most Coveted Real Estate

Jayson Ang – October 5, 2024 –

Singapore, a bustling city-state known for its impressive skyline and thriving economy, is home to some of the most desirable...

All Blog Posts

Calculating Your Property’s Annual Value in Singapore 2024: A Simple Guide!

Jayson Ang – December 15, 2024 –

TLDR Understanding your property's annual value is crucial for determining property taxes in Singapore. The annual value is based on...

All Opinion

Why Can’t More People Own Private Property?

Jayson Ang – April 2, 2024 –

TLDR The blog post discusses the aspirations of individuals like Siti and Mr. Tan regarding property ownership in Singapore. Siti...

All Buying Tips Top List

Tips for Choosing the Home of Your Dreams

Jayson Ang – December 26, 2022 –

TLDR Decoding the Singapore property market can be challenging, but understanding key factors like property size, location, and lease tenure...

All Buying Tips Reports

2024 Residential Property Market Outlook

Jayson Ang – December 22, 2023 –

TLDR The market outlook for 2024 suggests continued uncertainties affecting housing demand and risk appetite due to geopolitical tensions, macroeconomic...