If you own a Singapore property and collect rent, that income is taxable — and IRAS expects you to declare it accurately each year. Yet many landlords either over-pay by missing legitimate deductions, or under-declare by misunderstanding what counts as gross rental income. This guide covers everything a Singapore landlord needs to know about rental income tax in 2026: what is taxable, what you can deduct, how progressive income tax rates apply, when non-residents pay a flat rate, and exactly how to file with IRAS — with a full worked dollar calculation.
- Rental income from Singapore properties is taxable under the Income Tax Act, administered by IRAS.
- Gross rental income includes rent, furniture/fittings allowances paid by tenant, and any service charges you receive.
- Key deductible expenses: mortgage interest (not principal), property tax, agent commission, insurance, and maintenance/repairs.
- Mortgage principal repayment is not deductible — only the interest portion qualifies.
- Net rental income (gross rent minus allowable deductions) is added to your other chargeable income and taxed at progressive rates up to 24% (YA2026).
- For non-resident landlords, rental income is taxed at 22% (flat rate, regardless of amount).
- Filing deadline: 18 April (e-filing) for income earned in the preceding calendar year.
- HDB flat subletters must obtain HDB approval before subletting; failure to declare rental income is an IRAS offence.
- Overseas property rental income is generally not taxable in Singapore unless remitted to Singapore through a Singapore partnership or business.
- IRAS may conduct rental income compliance checks — keeping good records is essential.
What Counts as Rental Income in Singapore?
Under the Income Tax Act (Cap. 134), rental income is defined as income arising from the letting of immovable property in Singapore. This includes not just the monthly rent but all amounts you receive in connection with the tenancy. Specifically, IRAS includes the following as taxable rental income:
- Monthly rent (whether paid in advance, in arrears, or as lump sum)
- Furniture and fittings allowances paid directly to the landlord by the tenant
- Service charges or maintenance charges collected by the landlord and not passed directly to a management corporation
- Rental deposits that are applied as rent or that the landlord retains (deposits returned in full are not income)
- Any consideration for granting, renewing, extending, or surrendering a lease
Notably, the security deposit is not income at the point of collection — it is the tenant’s money held in trust. Only if you retain part or all of the deposit at the end of the tenancy (as compensation for damage or unpaid rent) does it become taxable in that Year of Assessment. Similarly, amounts paid by a tenant directly to a third-party service provider (e.g., PUB utility bills in the tenant’s name) are not your income.
Allowable Deductions Against Rental Income
Singapore’s IRAS allows landlords to deduct revenue expenses that are incurred wholly and exclusively in the production of rental income. Capital expenses — improvements that extend the life or fundamentally alter the property — are generally not deductible (though you may claim an annual allowance on qualifying plant and machinery). The distinction between repairs (revenue, deductible) and improvements (capital, not deductible) is one of the most contested areas in rental tax disputes.
Deductible Expenses
Mortgage interest: The interest portion of your home loan repayment is deductible in the year it is paid or accrued. You must obtain a statement from your bank each year showing the breakdown of principal and interest — most Singapore banks provide this as an annual mortgage statement or at the borrower’s request. Only interest on a loan taken to acquire or improve the property qualifies; refinancing costs (legal fees, valuation fees) are deductible as a revenue expense in the year incurred.
Property tax: Annual property tax paid to IRAS on the rental property is deductible. If you are renting out only part of the property (e.g., subletting spare bedrooms in your own home), only the proportionate share of property tax applicable to the sublet area is deductible.
Estate agent or property management commission: Commission paid to a CEA-registered agent for securing tenants is deductible. If you pay a property management company an ongoing monthly management fee, this is also deductible.
Insurance: Fire insurance, landlord’s liability insurance, and home contents insurance (where the landlord — not tenant — bears the premium) are deductible. Mortgage-linked MRTA or MLTA insurance premiums are not deductible against rental income.
Repairs and maintenance: Costs of maintaining the property in its existing state — plumbing repairs, painting, replacing broken fittings, and routine servicing — are deductible. Replacing a broken air conditioner with an equivalent unit is a repair; adding a new ducted air conditioning system where none existed before is a capital improvement and is not immediately deductible (though it may qualify for plant and machinery allowance).
Furniture and fittings — deemed deduction for HDB rooms: For HDB flat owners subletting individual rooms, IRAS allows a deemed deduction of S$150 per month per sublet room for furniture and fittings, without the need to produce receipts. For private property landlords letting the whole unit furnished, you may claim an annual allowance of 20% of the cost of qualifying furniture and fittings each year (over 5 years), or the actual replacement cost when items are replaced.
Non-Deductible Expenses
- Mortgage principal repayment: Only the interest component is deductible. The principal reduces your loan balance and is considered a capital repayment — it creates a capital asset (equity in the property) and therefore cannot be expensed against rental income.
- Capital improvements: Additions or alterations that increase the value or extend the useful life of the property (e.g., installing a lift, adding a new bathroom, full gutting and rebuilding) are capital in nature and not immediately deductible.
- Renovation and reinstatement costs borne by tenant: If your tenant bears the cost of renovation or reinstatement directly, this is not your expense to claim.
- Personal expenses: Costs that are partly personal — such as a home office deduction for a property you also use personally — are not allowable unless you can clearly demarcate the portion used exclusively for rental.
How Rental Income Is Taxed: Progressive Rates
Net rental income (after deductions) is added to your total chargeable income for the Year of Assessment (YA) and taxed at Singapore’s progressive personal income tax rates. The YA is the year following the income year — so rental income earned in calendar year 2025 is assessed in YA2026. Singapore’s personal income tax rates are among the more moderate in the Asia-Pacific region for middle incomes, but the top marginal rate was raised to 24% for chargeable income above S$1 million from YA2024 onwards.
| Chargeable Income (S$) | Marginal Rate | Tax on Band (S$) | Cumulative Tax (S$) |
|---|---|---|---|
| First S$20,000 | 0% | 0 | 0 |
| Next S$10,000 | 2% | 200 | 200 |
| Next S$10,000 | 3.5% | 350 | 550 |
| Next S$40,000 | 7% | 2,800 | 3,350 |
| Next S$40,000 | 11.5% | 4,600 | 7,950 |
| Next S$40,000 | 15% | 6,000 | 13,950 |
| Next S$40,000 | 18% | 7,200 | 21,150 |
| Next S$40,000 | 19% | 7,600 | 28,750 |
| Next S$40,000 | 19.5% | 7,800 | 36,550 |
| Next S$40,000 | 20% | 8,000 | 44,550 |
| Next S$180,000 | 23% | 41,400 | 85,950 |
| Next S$500,000 | 23.5% | 117,500 | 203,450 |
| Above S$1,000,000 | 24% | — | — |
Worked Example: Mr Chen’s Rental Income Calculation
Mr Chen is a Singapore Citizen, aged 45, working as a finance manager earning S$120,000 per year. He owns a 2-bedroom condominium in District 15 which he lets out fully furnished at S$3,800 per month. His mortgage on the property is S$1.4 million outstanding at 3.0% per annum (bank loan). Here is how his rental income is assessed for YA2026 (income year 2025):
Step 1 — Gross rental income: S$3,800 × 12 = S$45,600
Step 2 — Allowable deductions:
- Mortgage interest (3% on S$1.4M, interest portion in Year 1): S$10,200
- Property tax (Annual Value S$36,000 × 10% owner-occupier rate — but since fully let out, taxed at 12%): S$3,600 (illustrative; actual depends on AV)
- Agent commission (secured 2-year tenancy at 1 month’s rent): S$3,800 ÷ 2 = S$1,900 (apportioned to 2025) + S$1,900 (renewal in 2024, deducted 2025) — total S$4,142 (illustrative)
- Fire insurance: S$420
- Maintenance and repairs: S$1,200
- Furniture and fittings wear and tear (20% p.a. on S$9,000 of qualifying items): S$1,800
- Total deductions: S$21,362
Step 3 — Net rental income: S$45,600 − S$21,362 = S$24,238
Step 4 — Total chargeable income: Employment income S$120,000 + Net rental S$24,238 = S$144,238, less earned income relief S$3,000 and CPF relief (capped) S$15,300 = total chargeable income approximately S$125,938.
Step 5 — Tax on chargeable income (YA2026): On S$125,938, the progressive tax calculation yields approximately S$12,700 total tax (effective rate ~10.1%). Without the rental deductions, chargeable income would be S$148,476 yielding tax of approximately S$17,600 — a saving of roughly S$4,900 from claiming legitimate deductions.
Special Rules for HDB Flat Subletting
HDB flat owners who sublet bedrooms (not the whole flat) must first obtain HDB’s approval before any subletting commences. This applies even if the subletting is to family members. HDB approval is granted for up to 2 years at a time and requires that the flat owner continues to reside in the flat. Income earned from approved bedroom subletting is taxable. The S$150-per-room-per-month deemed deduction for furniture and fittings applies.
If you own an HDB flat and have completed MOP, you may sublet the entire flat (subject to HDB approval and subletting quotas for foreigners). Whole-flat subletting income is taxed in the same way as private property rental income: gross rent minus allowable deductions, added to chargeable income. Subletting an HDB flat without HDB’s approval is a breach of the Housing & Development Act and can result in compulsory acquisition of the flat — independent of the IRAS tax liability.
Non-Resident Landlords: Flat 22% Withholding Tax
If you are a non-resident individual for tax purposes — broadly, someone who spends fewer than 183 days in Singapore in the basis year — your Singapore rental income is taxed at a flat rate of 22% on the gross rental income. You may still claim allowable deductions; the 22% applies to your net chargeable rental income. If you are a Singapore Citizen or Permanent Resident who is temporarily overseas (e.g., on an overseas posting), your Singapore tax residency status is assessed by IRAS on a case-by-case basis — most citizens on short overseas postings retain Singapore tax resident status.
Foreign companies or entities receiving Singapore rental income are subject to corporate tax at 17% on net rental income, subject to qualifying deductions and the standard corporate income tax framework.
Overseas Property Rental Income
Singapore operates on a territorial basis of taxation. Rental income from overseas properties is generally not taxable in Singapore — regardless of whether you remit the funds to Singapore — provided the income is not received through a Singapore partnership or business structure. For most individual Singapore resident landlords with overseas investment properties, the rental income from those overseas properties is assessed and taxed in the jurisdiction where the property is located, not in Singapore.
An exception arises if the overseas rental income is received through a Singapore-registered partnership, in which case it forms part of the partnership’s Singapore-sourced income and is taxable here. Individuals who use Singapore-incorporated investment holding companies to hold overseas properties should seek specific tax advice on the foreign-sourced income exemption provisions.
Filing Obligations and Deadlines
Rental income must be declared in your annual income tax return filed with IRAS. The key deadlines are:
- 15 April — paper return deadline (Form B or B1)
- 18 April — e-filing deadline via myTax Portal (strongly recommended; auto-saves and provides immediate acknowledgement)
- IRAS may issue a notice of assessment based on information it holds; if the notice is incorrect, you have 30 days to object in writing.
You should retain rental income and expense records (bank statements, mortgage statements, receipts, tenancy agreements, and HDB approval letters where applicable) for at least 5 years after the YA in which the income was earned. IRAS has the power to raise estimated assessments if returns are not filed, and may impose penalties of up to 200% of the underpaid tax in cases of deliberate under-declaration.
Why This Matters: Rental Income Tax Is Widely Under-Optimised
Many Singapore landlords pay more rental income tax than necessary simply because they do not claim all allowable deductions. The single most commonly missed deduction is mortgage interest — particularly for landlords who received the property as a gift or inheritance and later mortgaged it, or who refinanced and forgot to track the interest breakdown. The second most commonly missed deduction is agent commission, particularly when the commission was paid across a year boundary. IRAS does not proactively inform landlords of missed deductions — the obligation to claim is entirely on the taxpayer.
Conversely, IRAS has increased its cross-referencing of HDB subletting approvals with declared rental income since 2022. Landlords who have approved subletting on record but who do not declare the corresponding rental income are at risk of compliance action. If you have missed declaring rental income in a prior year, IRAS’s Voluntary Disclosure Programme allows you to come forward with reduced penalties.
What Might Come Next
This section reflects analysis as of June 2026 and is speculative in nature.
With Singapore private residential rents having fallen approximately 1.2% quarter-on-quarter in Q1 2026 (after the sharp rises of 2022–2023), the net rental income of many leveraged landlords is narrowing. If mortgage interest rates remain elevated relative to the peak rent years, some landlords may find their rental properties generating a net loss for tax purposes — which, subject to IRAS’s anti-avoidance rules, could be carried forward to offset future rental income. A review of the deemed S$150-per-room deduction for HDB subletting (unchanged for many years) may be warranted as renovation and furniture costs have risen significantly since this figure was set.
Frequently Asked Questions
Can I deduct the full mortgage repayment from my rental income?
No. Only the interest portion of your mortgage repayment is deductible against rental income. The principal component reduces your loan balance and builds your equity — it is a capital item, not a revenue expense, and IRAS does not allow it as a deduction. To find your interest portion, request an annual loan statement from your bank; most Singapore banks provide a breakdown of principal and interest for each repayment month.
What if my rental property is vacant for part of the year — do I still pay tax?
You only pay tax on income actually received. If your property is vacant for, say, 3 months, you declare 9 months of rental income. However, during the vacant period, deductible expenses such as mortgage interest and property tax continue to accrue. IRAS allows you to deduct expenses proportionate to the period the property was available for letting — meaning expenses during a vacancy where you were actively seeking a new tenant are deductible. Expenses during a period when the property was taken off the market for personal use are not deductible.
I sublet two bedrooms in my HDB flat. Do I need to declare this income?
Yes. All rental income from approved HDB bedroom subletting is taxable. You must declare it in your annual income tax return. For each sublet room, you may claim the deemed deduction of S$150 per month for furniture and fittings without producing receipts. You may also claim your proportionate share of mortgage interest, property tax, and actual maintenance costs attributable to the sublet rooms. If you rent two rooms at S$1,200 per room per month in a 4-room flat, your gross rental income is S$28,800 per year and your deemed furniture deduction is S$3,600 (S$150 × 2 rooms × 12 months).
Is rental income subject to GST?
Residential property rental is exempt from Goods and Services Tax (GST). You do not need to charge GST on rent collected from residential tenants, and you cannot claim input GST on expenses related to residential rental. Commercial property rental, however, is a taxable supply for GST purposes — if your taxable turnover (including commercial rental) exceeds S$1 million per year, you must register for GST. Mixed-use properties (partly residential, partly commercial) require proportional GST treatment; seek specific advice from an IRAS-registered GST agent.
Can I claim renovation costs as a deduction?
It depends on the nature of the renovation. Repairs and maintenance that restore the property to its original condition — repainting, fixing plumbing, replacing broken tiles like for like — are revenue expenses and are deductible in the year incurred. Improvements that add new features, increase the property’s value, or extend its useful life — installing a new air conditioning system, adding built-in wardrobes where none existed, or extending a room — are capital expenditure and are not deductible as a revenue expense. Some items of qualifying plant and machinery (e.g., air conditioning units, kitchen appliances let with the property) may qualify for capital allowances spread over 3 years at the accelerated rate.
What happens if I forget to declare rental income from a prior year?
IRAS has a Voluntary Disclosure Programme (VDP) that allows taxpayers who discover past under-declarations to come forward voluntarily. Under the VDP, penalties are reduced significantly — typically waived or capped at 5% of the additional tax payable — compared to penalties of up to 200% if IRAS discovers the under-declaration through an audit. To make a VDP disclosure, you file a revised return or write to IRAS explaining the error and the correct amount. It is far better to disclose proactively than to wait for IRAS to contact you, as the VDP penalty concessions are only available if IRAS has not already commenced an audit of your account.
Do I pay tax if I rent my property to a family member at below-market rent?
You declare the actual rent received, not the market rent, when letting to family members at a concessionary rate. There is no IRAS rule requiring you to impute market rent on below-market tenancies with family members — unlike some other jurisdictions. However, if the arrangement results in a net loss (expenses exceed concessionary rent), IRAS may disallow the loss on the basis that the rental was not commercially conducted. If the property is genuinely available for letting at market rates and a family member happens to be the tenant at a reduced rate, keeping documentation of the commercial basis of the arrangement is prudent.
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Disclaimer: This article is for general informational purposes only and does not constitute tax, legal, or financial advice. All tax rates, deduction rules, and filing deadlines cited are based on IRAS guidance as at June 2026 and are subject to change. Readers should verify current rules at iras.gov.sg and consult a registered tax professional or accountant before filing. The worked examples are illustrative; actual tax liability depends on individual circumstances, applicable reliefs, and IRAS’s assessment.
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