The HDB Yearly Worth will be the believed gross once-a-year rent a home could command if it ended up rented out, excluding furnishings, furnishings, and servicing expenses. This benefit, determined by the Inland Revenue Authority of Singapore (IRAS), is a vital 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, taking into consideration the marketplace rentals of similar or similar Homes while in the vicinity, and also the assets's sizing, location, and condition. The way the Annual Benefit is decided continues website to be a similar irrespective of whether the flat is proprietor-occupied, vacant, or rented out. House tax is then calculated by multiplying the Yearly Worth from the prevailing tax price, that is progressive and varies significantly between operator-occupied and non-proprietor-occupied Homes. For owner-occupied HDB flats, tax rates are significantly decreased to really encourage property ownership.