The rented unit and comparison properties
Mr Tan’s three-bedroom unit at 1 ABC Road is 90 square metres and rents for S$5,000 a month. IRAS considers similar three-bedroom units in the same development. Its hypothetical table contains five examples: storey 10, unit 08, 94 sqm, S$4,600; storey 9, unit 06, 84 sqm, S$4,900; storey 11, unit 14, 90 sqm, S$5,000; storey 6, unit 16, 96 sqm, S$5,100; and storey 12, unit 03, 89 sqm, S$5,300 per month.
Why annual value is below gross rent
After considering the unit’s characteristics and allowing reasonably for furniture, furnishings and maintenance fees, IRAS assesses annual value at S$39,000, equivalent to S$3,250 a month. The source does not present gross rent multiplied by twelve as the annual-value calculation. Its listed rental points are hypothetical and must not be treated as real transactions or direct comparisons for a reader’s own home.
Same annual value, different occupation
Neighbour Mr Chan owns and lives in a similar-sized three-bedroom unit in the same development. Both homes receive annual value S$39,000. Owner occupation does not, in this example, reduce the underlying annual value; the distinction affects the tax treatment used afterward.
The source’s 2025 tax comparison
Mr Chan’s 2025 property tax is S$918 because he benefits from owner-occupier rates and the 2025 owner-occupied residential property rebate. Mr Tan’s rental unit is taxed at non-owner-occupier rates and has tax of S$5,400. The final bill depends on annual value, applicable rates and any rebate. The stated figures are for the example’s 2025 circumstances, not a promise of the same bill in other years.
Official source
This article independently explains the substantive contents of the official PDF, including the relevant conditions, procedures and annexes. The linked document remains the authoritative source for its original wording, and later changes should be checked separately.
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