diff --git a/av1/encoder/encodeframe.c b/av1/encoder/encodeframe.c
index 28b72d9..487b3ac 100644
--- a/av1/encoder/encodeframe.c
+++ b/av1/encoder/encodeframe.c
@@ -6347,8 +6347,6 @@
   av1_zero(*td->counts);
   av1_zero(rdc->comp_pred_diff);
 
-  // Allow intrabc when screen content tools are enabled.
-  cm->allow_intrabc = cm->allow_screen_content_tools;
   // Reset the flag.
   cpi->intrabc_used = 0;
   // Need to disable intrabc when superres is selected
diff --git a/av1/encoder/encoder.c b/av1/encoder/encoder.c
index 130aa9f..9f61585 100644
--- a/av1/encoder/encoder.c
+++ b/av1/encoder/encoder.c
@@ -99,30 +99,6 @@
 #define FILE_NAME_LEN 100
 #endif
 
-// Estimate if the source frame is screen content, based on the portion of
-// blocks that have no more than 4 (experimentally selected) luma colors.
-static int is_screen_content(const uint8_t *src, int use_hbd, int bd,
-                             int stride, int width, int height) {
-  assert(src != NULL);
-  int counts = 0;
-  const int blk_w = 16;
-  const int blk_h = 16;
-  const int limit = 4;
-  for (int r = 0; r + blk_h <= height; r += blk_h) {
-    for (int c = 0; c + blk_w <= width; c += blk_w) {
-      int count_buf[1 << 12];  // Maximum (1 << 12) color levels.
-      const int n_colors =
-          use_hbd ? av1_count_colors_highbd(src + r * stride + c, stride, blk_w,
-                                            blk_h, bd, count_buf)
-                  : av1_count_colors(src + r * stride + c, stride, blk_w, blk_h,
-                                     count_buf);
-      if (n_colors > 1 && n_colors <= limit) counts++;
-    }
-  }
-  // The threshold is 10%.
-  return counts * blk_h * blk_w * 10 > width * height;
-}
-
 static INLINE void Scale2Ratio(AOM_SCALING mode, int *hr, int *hs) {
   switch (mode) {
     case NORMAL:
@@ -3493,6 +3469,71 @@
   }
 }
 
+static void set_screen_content_options(AV1_COMP *cpi) {
+  AV1_COMMON *cm = &cpi->common;
+
+  if (cm->seq_params.force_screen_content_tools != 2) {
+    cm->allow_screen_content_tools = cm->allow_intrabc =
+        cm->seq_params.force_screen_content_tools;
+    return;
+  }
+
+  if (cpi->oxcf.content == AOM_CONTENT_SCREEN) {
+    cm->allow_screen_content_tools = cm->allow_intrabc = 1;
+    return;
+  }
+
+  // Estimate if the source frame is screen content, based on the portion of
+  // blocks that have few luma colors.
+  const uint8_t *src = cpi->source->y_buffer;
+  assert(src != NULL);
+  const int use_hbd = cpi->source->flags & YV12_FLAG_HIGHBITDEPTH;
+  const int stride = cpi->source->y_stride;
+  const int width = cpi->source->y_width;
+  const int height = cpi->source->y_height;
+  const int bd = cm->seq_params.bit_depth;
+  const int blk_w = 16;
+  const int blk_h = 16;
+  // These threshold values are selected experimentally.
+  const int color_thresh = 4;
+  const unsigned int var_thresh = 0;
+  // Counts of blocks with no more than color_thresh colors.
+  int counts_1 = 0;
+  // Counts of blocks with no more than color_thresh colors and variance larger
+  // than var_thresh.
+  int counts_2 = 0;
+
+  for (int r = 0; r + blk_h <= height; r += blk_h) {
+    for (int c = 0; c + blk_w <= width; c += blk_w) {
+      int count_buf[1 << 12];  // Maximum (1 << 12) color levels.
+      const uint8_t *const this_src = src + r * stride + c;
+      const int n_colors =
+          use_hbd ? av1_count_colors_highbd(this_src, stride, blk_w, blk_h, bd,
+                                            count_buf)
+                  : av1_count_colors(this_src, stride, blk_w, blk_h, count_buf);
+      if (n_colors > 1 && n_colors <= color_thresh) {
+        ++counts_1;
+        struct buf_2d buf;
+        buf.stride = stride;
+        buf.buf = (uint8_t *)this_src;
+        const unsigned int var =
+            use_hbd
+                ? av1_high_get_sby_perpixel_variance(cpi, &buf, BLOCK_16X16, bd)
+                : av1_get_sby_perpixel_variance(cpi, &buf, BLOCK_16X16);
+        if (var > var_thresh) ++counts_2;
+      }
+    }
+  }
+
+  // The threshold values are selected experimentally.
+  cm->allow_screen_content_tools =
+      counts_1 * blk_h * blk_w * 10 > width * height;
+  // IntraBC would force loop filters off, so we use more strict rules that also
+  // requires that the block has high variance.
+  cm->allow_intrabc = cm->allow_screen_content_tools &&
+                      counts_2 * blk_h * blk_w * 15 > width * height;
+}
+
 static void set_size_independent_vars(AV1_COMP *cpi) {
   int i;
   AV1_COMMON *cm = &cpi->common;
@@ -3505,19 +3546,7 @@
   cm->interp_filter = SWITCHABLE;
   cm->switchable_motion_mode = 1;
 
-  if (frame_is_intra_only(cm)) {
-    if (cm->seq_params.force_screen_content_tools == 2) {
-      cm->allow_screen_content_tools =
-          cpi->oxcf.content == AOM_CONTENT_SCREEN ||
-          is_screen_content(cpi->source->y_buffer,
-                            cpi->source->flags & YV12_FLAG_HIGHBITDEPTH,
-                            cm->seq_params.bit_depth, cpi->source->y_stride,
-                            cpi->source->y_width, cpi->source->y_height);
-    } else {
-      cm->allow_screen_content_tools =
-          cm->seq_params.force_screen_content_tools;
-    }
-  }
+  if (frame_is_intra_only(cm)) set_screen_content_options(cpi);
   cpi->is_screen_content_type = (cm->allow_screen_content_tools != 0);
 }