What Annual Value Actually Means
Annual Value (AV) is not your purchase price, outstanding mortgage, or market value — it's IRAS's estimate of the yearly rent your property could fetch on the open market, based on comparable rental transactions nearby. You can check your specific property's current AV on the IRAS website; it's reassessed periodically as market rents move.
2025 Owner-Occupier Tax Bands (Current)
| Annual Value | Rate |
|---|---|
| First $12,000 | 0% |
| Next $28,000 (to $40,000) | 4% |
| Next $10,000 (to $50,000) | 6% |
| Next $25,000 (to $75,000) | 10% |
| Next $10,000 (to $85,000) | 14% |
| Next $15,000 (to $100,000) | 20% |
| Next $40,000 (to $140,000) | 26% |
| Above $140,000 | 32% |
These bands took effect from 1 January 2025 — the final step of a multi-year increase that pushed the top owner-occupier rate from 6% (in 2022) to 32% today, aimed squarely at higher-value homes rather than typical HDB flats.
Non-Owner-Occupier Tax Bands
| Annual Value | Rate |
|---|---|
| First $30,000 | 12% |
| Next $15,000 (to $45,000) | 20% |
| Next $15,000 (to $60,000) | 28% |
| Above $60,000 | 36% |
Notice there's no 0% band at all for non-owner-occupied properties — every dollar of AV is taxed, reflecting the policy view that rental/investment properties are wealth-generating assets rather than a primary home.
The One-Off 2026 Rebate
To help cushion rising property tax bills, IRAS is providing a one-off rebate for 2026 on owner-occupied homes only:
- HDB flats: 15% rebate on the property tax payable
- Private residential properties: 10% rebate, capped at S$500
The rebate is applied automatically — no application needed — and appears as a credit directly on the December bill. For most HDB owner-occupiers who already pay $0 (their AV falls entirely within the 0% band), the rebate has no dollar effect since there's no tax to rebate against.
Worked Examples
| Property | AV | Tax Before Rebate | 2026 Rebate | Net Payable |
|---|---|---|---|---|
| HDB 4-room flat | $10,800 | $0 | $0 (no tax to rebate) | $0 |
| Private condo (owner-occ.) | $36,000 | $960 | − $96 | $864 |
| Rented-out condo | $36,000 | $4,800 | Not eligible | $4,800 |
The gap between owner-occupied and rented-out tax on an identical $36,000 AV property is stark — $864 versus $4,800 — illustrating exactly why the owner-occupier concession matters so much if you're eligible for it.
Related Tools & Guides
Frequently Asked Questions
Annual Value is set by IRAS and specific to your property — check your exact AV on the IRAS website or your property tax bill rather than estimating it. Rates and rebates are set by IRAS and can change; verify before relying on this estimate.