The HDB Annual Worth is the approximated gross yearly hire a property could command if it have been rented out, excluding furniture, furnishings, and upkeep costs. This price, based on the Inland Earnings Authority of Singapore (IRAS), is a crucial factor in calculating the annual home tax and is not based upon the flat's market sale cost. IRAS testimonials the Yearly Worth of all Houses on a yearly basis, considering the market rentals of similar or comparable Qualities inside the vicinity, together with the assets's sizing, locale, and ailment. Just how the Once-a-year Benefit is decided stays precisely the same irrespective of whether read more the flat is proprietor-occupied, vacant, or rented out. Home tax is then calculated by multiplying the Annual Value by the prevailing tax rate, which is progressive and may differ noticeably concerning operator-occupied and non-proprietor-occupied Qualities. For owner-occupied HDB flats, tax fees are significantly decreased to stimulate residence ownership.