The HDB Annual Worth may be the believed gross annual lease a residence could command if it have been rented out, excluding furniture, furnishings, and upkeep expenses. This benefit, determined by the Inland Revenue Authority of Singapore (IRAS), is a vital Consider calculating the yearly assets tax and isn't according to the flat's market place sale rate. IRAS critiques the Annual Worth of all Homes per year, taking into account website the market rentals of similar or comparable Qualities inside the vicinity, and also the assets's size, location, and situation. The way in which the Annual Value is determined remains the identical regardless of whether the flat is owner-occupied, vacant, or rented out. Property tax is then calculated by multiplying the Annual Benefit via the prevailing tax level, which is progressive and may differ noticeably concerning operator-occupied and non-proprietor-occupied Qualities. For owner-occupied HDB flats, tax rates are significantly decreased to really encourage household ownership.