Property
What is Annual Value (AV)?
IRAS’s estimate of the yearly rent your property could fetch if it were let out, used to work out your property tax. It is not based on what you paid for the home, and applies whether or not you actually rent it.
How the Annual Value is set
IRAS estimates the gross yearly rent your property could fetch if it were let out, based on the rents of comparable nearby properties. It isn’t based on what you paid for the home, and it applies whether or not you actually rent it out. IRAS reviews AVs periodically and notifies you when yours changes.
What it’s used for
Your property tax is the Annual Value multiplied by the applicable tax rate. Owner-occupied homes enjoy lower, progressive rates, while non-owner-occupied (rented out or vacant) homes are taxed at higher rates on the same AV. Annual Value is also used to means-test eligibility for various government schemes and cost-of-living rebates.