The HDB Annual Value could be the estimated gross annual hire a residence could command if it have been rented out, excluding home furniture, furnishings, and servicing charges. This price, based on the Inland Earnings Authority of Singapore (IRAS), is a crucial factor in calculating the annual house tax and isn't dependant on the flat's marketplace sale value. IRAS opinions the Once-a-year Price of all properties yearly, taking into consideration the marketplace rentals of comparable or similar Houses during the vicinity, more info along with the home's dimension, area, and issue. How the Yearly Price is set stays precisely the same regardless of whether the flat is proprietor-occupied, vacant, or rented out. Home tax is then calculated by multiplying the Annual Value by the prevailing tax rate, that is progressive and varies significantly between operator-occupied and non-operator-occupied Houses. For proprietor-occupied HDB flats, tax charges are substantially lower to encourage dwelling possession.