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Annual Value (AV) Explained

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The definition

Annual Value (AV) is statutorily defined under the Property Tax Act as the gross annual rent at which the property might reasonably be expected to be let from year to year — exclusive of any furniture or attachments and exclusive of any rent the tenant pays for them. It is what IRAS believes a willing landlord and tenant would agree to pay annually if the property were let on the open market.

AV is not the same as your actual rent. It's also not the property value or capital value. It is purely a rental concept and is reset annually by IRAS based on prevailing market rents.

How IRAS derives AV

  • Comparable rentals — recent transacted rents for similar units in the same building or area.
  • Property attributes — built-in area, layout, floor level, facing, view, age, renovation status.
  • Adjustments — for differences between the subject property and the comparables.

For HDB flats, IRAS uses HDB's own rental transaction database. For private residential, IRAS uses stamped tenancy agreements lodged with IRAS plus URA REALIS data. AV reviews are done at least annually for properties with significant rental movement.

Why your AV may change year to year

  • Market rents in your area went up (or down) materially
  • Comparable units transacted at new rents
  • Your property had renovations completed, changing its rental potential
  • Your property's rental approval status changed (e.g. en-bloc voted)
  • IRAS adjusted its rental-comparable methodology

How to object

  1. Receive Notice of Assessment from IRAS (sent in December).
  2. Object within 30 days via myTax Portal.
  3. Provide evidence — e.g. a recently signed Tenancy Agreement (stamped) for a comparable unit at a lower rent.
  4. IRAS reviews — may revise AV or maintain it.
  5. If still dissatisfied, appeal to Valuation Review Board within 21 days of IRAS' decision.

Property tax continues to be payable in the meantime — pay first, refund later if the objection succeeds.

Related guides

Frequently asked questions

What is Annual Value (AV) in Singapore?▾

Annual Value is IRAS's estimate of the gross annual rent a property could fetch if it were rented out, before any deductions for furniture, furnishings, or maintenance fees. It is the basis for all property tax computations. Even if you live in the property yourself, IRAS imputes an AV — what the property could rent for — to compute your tax.

How does IRAS determine the AV of my property?▾

IRAS uses rental data from similar properties in the area. Comparable factors include: property type and size, location (town, block), floor level, orientation, age and condition. Field inspections may be conducted. For HDB, IRAS uses HDB resale-flat rental data. For private, market rents from sources like URA's REALIS database are used.

Why did my AV go up?▾

AV reflects market rents. When market rents rise (as they did sharply in 2022–2023), AVs are raised correspondingly. AV reviews happen annually. The Budget 2024 widening of owner-occupier AV bands was partly a response to AV increases driving higher tax bills for ordinary households.

Can I object to my AV?▾

Yes. You may file an objection within 30 days of the Notice of Assessment. Provide evidence — typically a comparable rental (stamped TA) of a similar unit at a lower rent. IRAS will review and may revise the AV. If still dissatisfied, you can appeal to the Valuation Review Board.

Is AV the same as the rent I actually receive?▾

No. AV is what IRAS thinks the property could fetch (gross annual rent before furniture / maintenance / management fee). Your actual rent may be higher (premium tenant) or lower (long-term tenant, less competitive lease). Income tax on actual rent is separate from property tax on AV — they are distinct taxes.