The HDB Yearly Price will be the approximated gross once-a-year hire a home could command if it ended up rented out, excluding furniture, 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 annually, considering the marketplace rentals of similar or similar Homes while in the vicinity, and also the assets's sizing, location, and situation. The way in which the Annual Value get more info is decided continues to be a similar 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, which can be progressive and varies considerably between operator-occupied and non-operator-occupied Homes. For owner-occupied HDB flats, tax prices are significantly lessen to really encourage household ownership.