The HDB Yearly Price will be the approximated gross once-a-year rent a home could command if it ended up rented out, excluding furnishings, furnishings, and upkeep expenses. This benefit, based on the Inland Revenue Authority of Singapore (IRAS), is a crucial Consider calculating the yearly residence tax and isn't based on the flat's marketplace sale price tag. IRAS opinions the Once-a-year Price of all Attributes yearly, check here taking into consideration the marketplace rentals of comparable or similar Homes from the vicinity, as well as the property's size, place, and situation. The way in which the Annual Value is determined continues to be the same irrespective of whether the flat is operator-occupied, vacant, or rented out. Residence tax is then calculated by multiplying the Yearly Worth through the prevailing tax charge, that's progressive and varies considerably in between owner-occupied and non-operator-occupied Houses. For proprietor-occupied HDB flats, tax charges are substantially lower to persuade dwelling possession.