Singapore Property Tax Guide 2026: IRAS Annual Value, Owner-Occupied Rates and How to Pay

by Lovelyhomes Editorial Team | Jul 4, 2026 | Buying Guide, Financial Planning, Investment Analysis, Property Investment, Resources & Tools, Stamp Duties & Taxes

⚡ Quick Answer: Singapore Property Tax 2026

Administered by: IRAS (Inland Revenue Authority of Singapore) — not URA, not HDB.
Based on Annual Value (AV): Property tax is charged on the AV of your property — the estimated annual market rent — not on the purchase price or the outstanding mortgage.
Two rate schedules: Owner-Occupied (OO) rates are significantly lower and progressive; Non-Owner-Occupied (NOO) rates are higher and apply to all investment properties, vacant units, and rented-out homes.
HDB flats included: All property owners — HDB flat owners included — pay property tax. However, most HDB flats have low AVs and benefit from the 0% OO tier on the first S$8,000.
Paid annually: IRAS issues property tax bills in January each year, payable by 31 January. GIRO instalments are available.
AV is IRAS’s estimate: IRAS reviews AVs periodically based on market rental data. You may object to your AV if you believe it is too high.
Commercial property: Non-residential property (offices, shops, industrial) is taxed at a flat 10% on AV — not the progressive residential schedule.

What Is Property Tax in Singapore?

Property tax is an annual tax levied by the Singapore Government on all property owners — whether the property is owner-occupied, rented out, or vacant. It is administered by the Inland Revenue Authority of Singapore (IRAS) under the Property Tax Act (Cap. 254). Property tax is distinct from income tax, stamp duty, and Goods and Services Tax, though all may apply to property-related transactions.

The key distinction that most buyers and owners misunderstand is that property tax is not a tax on rental income or on capital gains — it is a tax on the right to own a property in Singapore, computed against the property’s Annual Value (AV). It does not matter whether you are currently receiving rental income: if you own a property that sits empty, IRAS still levies property tax at the higher Non-Owner-Occupied (NOO) rate unless you have formally declared the property as your own residence.

Every property owner in Singapore — from the owner of a humble 2-room HDB flat to the holder of a Good Class Bungalow (GCB) in District 10 — receives a property tax bill from IRAS each January. For most HDB owner-occupiers, the annual bill is relatively modest. For high-value investment properties, it can run into tens of thousands of dollars.

Understanding property tax matters for several reasons: it affects the true cost of ownership, it influences net rental yield calculations, and it is a recurring holding cost that does not diminish with time the way a mortgage does.

Singapore property tax rates 2026 owner-occupied vs non-owner-occupied IRAS — Figure 1: Singapore residential property tax rate schedule — Owner-Occupied (OO) vs Non-Owner-Occupied (NOO). Rates shown are indicative of the progressive schedule; verify current rates at iras.gov.sg. Click to zoom.

What Is Annual Value (AV) and How Does IRAS Calculate It?

The Annual Value (AV) of a property is IRAS’s estimate of the gross annual rent the property would fetch if it were rented out on the open market for a year, exclusive of furniture and maintenance. This is not based on what you actually receive in rent (or what you would receive if you rented it out) — it is IRAS’s independent assessment of market rental value, derived from rental transaction data for comparable properties.

IRAS reviews AVs periodically — typically when there are significant changes in the rental market — and updates them to reflect current conditions. The 2022–2023 rental surge in Singapore, which pushed private condo rents up by 30–40% in some segments, triggered widespread AV reviews and upward revisions, which in turn increased property tax bills for many owners.

How IRAS Arrives at the AV

IRAS uses three main reference points when assessing AV: (1) actual rental transactions for comparable properties in the same area and building type, sourced from rental contracts stamped with IRAS; (2) URA rental statistics for private residential properties by district and property type; and (3) HDB rental data for public housing. For unique properties such as landed homes and GCBs, IRAS may use direct comparisons with known rental transactions for nearby similar properties.

If your property has never been rented — for example, you bought a new condo and moved in immediately — IRAS will estimate the AV by reference to rents achieved by comparable units in the same development or comparable developments nearby.

Owner-Occupied (OO) vs Non-Owner-Occupied (NOO)

The most important variable in your property tax calculation is whether the property is classified as owner-occupied. If you live in the property as your principal place of residence, you pay the lower, progressive OO rates. All other residential properties — rented out, left vacant, or used as a secondary home — are taxed at the higher NOO rates.

Only one property may be declared OO. If you own two residential properties, one must be NOO. You notify IRAS of your OO status by filing an OO declaration; failure to do so defaults the property to the NOO rate. If your circumstances change — for example, you move out and rent the property — you must update IRAS within 30 days.

Singapore Property Tax Rates 2026

Singapore uses a progressive property tax rate system for residential property. As the AV increases, higher tiers of AV are taxed at higher rates. The OO schedule is significantly more generous than the NOO schedule, reflecting the Government’s intent to support owner-occupiers while taxing investment and rental properties more heavily.

Note: The rates below represent the progressive schedule as applied to residential property. Always verify the current year’s exact rates with IRAS at iras.gov.sg, as rates are subject to revision.

Annual Value Band	OO Rate (%)	OO Tax on Band	NOO Rate (%)	NOO Tax on Band
First S$8,000	0%	S$0	10%	S$800
Next S$47,000 (AV S$8,001–S$55,000)	4%	S$1,880	12%	S$5,640
Next S$15,000 (AV S$55,001–S$70,000)	6%	S$900	14%	S$2,100
Next S$15,000 (AV S$70,001–S$85,000)	8%	S$1,200	16%	S$2,400
Next S$15,000 (AV S$85,001–S$100,000)	10%	S$1,500	18%	S$2,700
Next S$15,000 (AV S$100,001–S$115,000)	12%	S$1,800	20%	S$3,000
Next S$15,000 (AV S$115,001–S$130,000)	14%	S$2,100	22%	S$3,300
Above S$130,000	16%	Proportional	24%	Proportional

The progressive structure means you do not pay the top rate on your entire AV — only on the portion that falls within each band. An HDB 4-room flat with a typical AV of S$12,000 pays 0% on the first S$8,000 and 4% on the remaining S$4,000, totalling S$160 per year in property tax if owner-occupied — less than S$14 per month.

Singapore property tax annual value examples HDB condo landed 2026 — *Figure 2: Estimated monthly property tax (OO vs NOO) for typical property types in Singapore, based on representative Annual Values. Click to zoom.*

How to Check Your Property’s Annual Value

IRAS publishes each property’s AV in the annual property tax bill sent each January. You can also check your AV anytime via the IRAS myTax Portal at mytax.iras.gov.sg — log in with your Singpass and navigate to “Property Tax” to view the current AV, rate applied, and tax amount for any property you own.

The AV is not the same as the purchase price, the valuation for bank loan purposes, or the market value of the property. It is specifically the rental-equivalent estimate. As a rough rule of thumb, the AV of private residential property is often around 2.5–4.0% of market value, reflecting rental yields in the broader market. For a condo valued at S$1.5 million yielding 3.2% gross, the AV would be approximately S$48,000.

Investment Properties and the Non-Owner-Occupied Rate

For property investors, the NOO property tax rate is a significant recurring cost that must be factored into yield calculations. On a private condo with an AV of S$40,000 — consistent with a mid-tier OCR 2-bedroom unit — the annual property tax at the NOO schedule amounts to approximately S$4,640 per year. On an AV of S$60,000 (a larger OCR or mid-CCR unit), the annual NOO tax rises to approximately S$8,040.

This cost is tax-deductible against rental income for income tax purposes if the property is genuinely rented out and declared as rental income under IRAS’s income tax framework. Investors should factor property tax, maintenance fees, sinking fund contributions, insurance, and depreciation into their true net yield calculations — gross rental yield does not reflect these holding costs.

If you own two or more residential properties, your second property will always be taxed at the NOO rate regardless of whether it is rented out. There is no provision to designate a second property as OO. Planning the sequence of property ownership — particularly for HDB upgraders moving to private property — requires careful thought about the tax implications of continuing to hold the HDB while buying private.

How to Pay Your Singapore Property Tax

IRAS issues property tax bills in January each year, covering the period from 1 January to 31 December. Payment is due by 31 January. Late payment attracts a 5% penalty on the outstanding amount, and further penalties may apply for continued non-payment.

Payment methods accepted by IRAS include: GIRO (the recommended method — set up once and IRAS auto-debits monthly instalments or annually); PayNow (via Singpass, referencing the IRAS tax reference); internet banking (using IRAS’s provided bill reference); and AXS stations for cash payments. CPF cannot be used to pay property tax — it must be paid in cash.

Worked Example: Property Tax for an HDB and a Private Condo

Scenario A — Owner-Occupied HDB 4-Room Flat (Tampines, AV S$12,000)

Annual Value: S$12,000. Owner-Occupied declaration filed. Tax computation:

First S$8,000 @ 0% = S$0
Next S$4,000 @ 4% = S$160
Total annual property tax: S$160 (approx. S$13 per month)

Scenario B — OCR Condo, 2BR, Owner-Occupied (AV S$30,000)

First S$8,000 @ 0% = S$0
Next S$22,000 @ 4% = S$880
Total annual property tax: S$880 (approx. S$73 per month)

Scenario C — Same OCR Condo Rented Out (NOO Rate, AV S$30,000)

First S$8,000 @ 10% = S$800
Next S$22,000 @ 12% = S$2,640
Total annual property tax: S$3,440 (approx. S$287 per month)

The difference between owner-occupied and non-owner-occupied on the same S$30,000 AV condo is S$2,560 per year — a meaningful recurring cost for investors. At a monthly rent of S$3,500, this property tax alone reduces the effective net monthly income by S$213 per month (before maintenance fees, income tax, and other costs).

Scenario D — CCR Condo Investment Property (AV S$60,000, NOO)

First S$8,000 @ 10% = S$800
Next S$47,000 @ 12% = S$5,640
Next S$5,000 @ 14% = S$700
Total annual property tax: S$7,140 (approx. S$595 per month)

Singapore property tax rate history changes 2011 to 2025 IRAS — *Figure 3: Key milestones in Singapore property tax rate history — from the introduction of progressive OO rates in 2011 to the 2022 Budget increases phased in through 2024. Click to zoom.*

How Singapore Property Tax Has Evolved — And Why It Matters

Singapore introduced progressive owner-occupied property tax rates in 2011, replacing a flat rate that had applied for decades. The shift reflected a recognition that a flat rate was regressive — owners of high-value properties in prime districts were paying the same percentage rate as HDB flat owners. The progressive structure effectively subsidises modest owner-occupiers while placing a heavier burden on high-value residential holdings.

The 2022 Budget took this further, announcing phased increases to property tax rates for higher-value residential property (both OO and NOO) effective from 2023 and 2024. The stated rationale was to make the property tax regime more progressive and to fund Singapore’s social expenditure needs. The changes had the most significant impact on owners of private property in the CCR and GCB areas, where AV levels frequently exceed S$100,000.

Compared internationally, Singapore’s property tax rates remain moderate. Hong Kong’s rates are typically 5% of assessable rent (a rate applied to actual rent, not an official AV). Australia’s state-based land taxes vary but are broadly comparable. The UK’s Council Tax is a flat charge by property band — arguably less progressive than Singapore’s AV-based system.

Property Tax Rebates and Reliefs

IRAS has periodically granted property tax rebates to help owner-occupiers manage their tax bills during periods of high AV or economic stress. The Government has in the past granted rebates to HDB flat owners, typically covering 20–60% of the OO property tax bill for HDB flats during COVID years and periods of elevated inflation. Similar rebates have been granted to commercial property owners during the same period.

As at July 2026, no general property tax rebate is in force for private residential property. HDB flat owners should check the most recent Budget Statement for any rebate applicable to the current year. IRAS publishes rebate details on its website alongside the annual property tax bill.

Objecting to Your Annual Value

If you believe IRAS has assessed an AV that is too high — perhaps because rental market conditions have deteriorated, your property has structural issues that depress its rentability, or IRAS has used an inappropriate comparable property — you may lodge an objection within 30 days of receiving the property tax notice. The objection process requires you to provide evidence of comparable rental transactions that support a lower AV.

IRAS will review the objection and may revise the AV, maintain it, or issue an explanation. If you disagree with IRAS’s determination after the objection, you may appeal to the Valuation Review Board (VRB), an independent tribunal. Note that property tax is still payable at the assessed amount pending the outcome of any objection — you are not entitled to withhold payment while an objection is being reviewed.

What Might Come Next for Singapore Property Tax

This section represents editorial analysis — not official guidance.

The AV review cycle and any further rate adjustments are the two main variables to watch. Given that rental market growth moderated through 2025 and into 2026 — with some segments seeing rents stabilise or soften — the next AV review cycle may result in downward revisions for certain property types and regions. This would be a modest relief for NOO property investors who have seen property tax bills rise significantly since 2022.

On the rate side, Singapore’s progressive property tax has achieved a reasonable degree of progressivity since the 2022 Budget changes. Further rate increases targeting ultra-high-AV properties (GCBs with AV > S$200,000) are a political possibility at future Budgets, consistent with the Government’s stated goal of distributing the tax burden more broadly across wealth brackets.

Frequently Asked Questions

Can I use CPF to pay my property tax?

No. Property tax must be paid in cash. CPF funds — including the Ordinary Account — cannot be used to pay IRAS property tax. This is a common point of confusion since CPF can be used for certain other property-related costs such as BSD, mortgage repayments (subject to limits), and HDB purchase price. If you are setting up GIRO for property tax, it must be linked to a bank account, not a CPF account.

Is property tax deductible as a rental expense?

Yes, if you rent out your property and declare the rental income to IRAS for income tax purposes, the property tax paid on that property is an allowable deduction against your rental income. You may deduct either the property tax actually paid, or take the default 15% deduction for deemed maintenance expenses (which includes property tax). You cannot claim both — choose whichever gives you the larger deduction. Consult a tax adviser for your specific situation.

My property is vacant — do I still pay property tax?

Yes. Property tax applies whether the property is occupied, rented out, or vacant. If the property is not your principal residence, it is taxed at the NOO rate even if nobody lives in it. There is no exemption for vacancy. This means owning a second property that is left empty carries both the opportunity cost of foregone rental income and the ongoing cost of NOO property tax, maintenance fees, and insurance.

When does IRAS review and change Annual Values?

IRAS reviews AVs on an ongoing basis, typically triggering a revision when market rents for comparable properties show a sustained movement of 10% or more from the current assessed AV. IRAS may review individual properties (for example, after a major renovation or a change in the property’s rentable area) or conduct broader sector-wide reviews when rental market conditions change materially. You will receive a notice from IRAS if your AV is revised, and you have 30 days to object if you disagree.

Does property tax apply to commercial shophouses?

Yes, but at a flat 10% rate on the AV, not the progressive residential schedule. Non-residential property — including commercial shophouses, offices, retail units, and industrial property — is taxed at this flat 10% rate. If a shophouse has a residential upper floor and commercial ground floor, IRAS apportions the AV between the two components and applies the residential rates (OO or NOO) to the residential portion and 10% to the commercial portion. This nuanced treatment is one reason shophouses are a structurally distinct investment category.

Do I need to pay property tax if I just bought a new launch condo that has not been completed?

Property tax begins accruing from the date the property is officially completed and issued a Temporary Occupation Permit (TOP) or Certificate of Statutory Completion (CSC). During the construction period, no property tax is levied. Once the TOP is issued, IRAS will assess the AV and begin charging property tax — typically at the OO rate if you declare it as your principal residence, or the NOO rate if you have not moved in or have another OO property. You do not need to do anything proactively; IRAS will write to you.

Singapore Stamp Duty Calculator 2026: BSD and ABSD Explained

by Lovelyhomes Editorial Team | Jul 2, 2026 | Buying Guide, Calculators, Financial Planning, Investment Analysis, Property Finance, Resources & Tools, Stamp Duties & Taxes

Singapore stamp duty is not a single charge — it is two separate taxes that stack on top of each other depending on who you are and what you already own. The Buyer’s Stamp Duty (BSD) applies to every residential purchase. The Additional Buyer’s Stamp Duty (ABSD) applies on top if you are buying a second property, if you are a Singapore Permanent Resident, or if you are a foreigner. Understanding both — and being able to calculate them accurately before you commit — is the single most important financial step in any Singapore property transaction.

This guide explains the 2026 BSD and ABSD rate schedules in full, shows you how to calculate your stamp duty liability step by step, and works through concrete examples at common price points. All figures reflect the rate schedules currently in force: the 2023 BSD schedule and the 27 April 2023 ABSD rates. For the authoritative source, always verify at iras.gov.sg/taxes/stamp-duty/for-property.

Quick Answer — Singapore Stamp Duty Calculator 2026

BSD applies to ALL buyers at the same progressive rate: 1% on first S$180k, 2% next S$180k, 3% next S$640k, 4% next S$500k, 5% next S$1.5M, 6% above S$3M.
ABSD stacks on top: Singapore Citizens pay 0% on their first property, 20% on a second, 30% on a third or more.
PRs pay 5% ABSD on a first property, 30% on a second, 35% on a third or more.
Foreigners pay 60% ABSD on any residential property.
For a S$1.5M property, a Singapore Citizen buying their first home pays BSD of S$44,600 — roughly 3% of the price. A foreigner buying the same property pays S$44,600 BSD plus S$900,000 ABSD.
BSD is typically payable within 14 days of signing the Option to Purchase (OTP); ABSD within 14 days of signing the Sale & Purchase Agreement, or within 14 days of exercising the OTP.
ABSD may be financed by CPF Ordinary Account for Singapore Citizens buying their first or subsequent homes, but BSD can also be paid from CPF OA.
Married SC/SPR couples may claim an ABSD remission on a second property if they dispose of the first within 6 months of purchase (or TOP for new launches).
Developers are subject to 35% ABSD with a remission available on residential development land if units are sold within the prescribed period.

What Is Buyer’s Stamp Duty (BSD)?

BSD is a tax levied by the Inland Revenue Authority of Singapore (IRAS) on the purchase or acquisition of property — residential and non-residential alike. It is calculated on the higher of the purchase price or the property’s market value. BSD has existed in Singapore since 1929 and was most recently revised upward in February 2023 when the Government added the 5% band (on the portion from S$1.5M to S$3M) and the 6% band (above S$3M) as part of its broader property market management effort.

BSD is non-negotiable: every buyer — Singapore Citizen, PR, foreigner, or entity — pays BSD. The rate schedule is progressive, meaning each increment of purchase price is taxed at its own marginal rate. The total BSD payable grows with the purchase price but as a percentage of price it rises only gradually because the higher rates apply only to the marginal portion above each threshold.

BSD Buyer Stamp Duty rates by price band Singapore 2026 — Figure 1: BSD rate schedule by price band (2023 schedule, effective 15 February 2023) and cumulative BSD payable at selected purchase prices. Source: IRAS.

BSD Calculation — Step by Step

To calculate BSD manually, work through each price band in order and tax only the portion that falls within that band:

Price Band	Rate	Max BSD in Band
First S$180,000	1%	S$1,800
Next S$180,000	2%	S$3,600
Next S$640,000	3%	S$19,200
Next S$500,000	4%	S$20,000
Next S$1,500,000	5%	S$75,000
Remainder above S$3,000,000	6%	—

Quick BSD shortcuts: For a S$1,000,000 purchase, BSD = S$1,800 + S$3,600 + S$19,200 + S$15,000 (S$500k × 3%) = S$24,600. For S$1,500,000: S$1,800 + S$3,600 + S$19,200 + S$20,000 = S$44,600. For S$2,000,000: S$44,600 + S$25,000 (S$500k × 5%) = S$69,600.

What Is Additional Buyer’s Stamp Duty (ABSD)?

ABSD is a separate tax introduced by the Government in December 2011, initially to cool a rapidly rising residential property market. It has been raised five times since — most recently and most significantly on 27 April 2023, when ABSD for foreigners doubled from 30% to 60% and rates for Singaporeans and PRs buying additional properties were substantially increased. ABSD is not a progressive tax: it applies at a flat percentage rate to the entire purchase price.

Unlike BSD, ABSD depends on who you are and how many residential properties you already own. “Already own” means at any point in the world — IRAS will ask for a statutory declaration confirming your existing property holdings, including overseas properties for the purpose of determining if you are an SC or PR “first-time” buyer.

Figure 2: ABSD rates by buyer profile as at 27 April 2023. Rates are applied to the full purchase price. Source: IRAS.

ABSD by Buyer Profile — The Key Numbers

The table below summarises the complete 2026 ABSD rate schedule:

Buyer Profile	1st Property	2nd Property	3rd+ Property
Singapore Citizen (SC)	0%	20%	30%
Singapore Permanent Resident (SPR)	5%	30%	35%
Foreigner (non-SC, non-SPR)	60%	60%	60%
Entity (company, trust, etc.)	65%	65%	65%

Important nuance — joint purchases: When a property is bought jointly, the higher rate applies to the entire transaction. A Singapore Citizen buying with a foreigner spouse pays 60% ABSD on the whole purchase price — not a blended rate. This is one of the most commonly misunderstood aspects of ABSD and catches many buyers off guard.

Stamp Duty Worked Example — Three Buyer Profiles

The following three worked examples use a purchase price of S$1.5 million — a broadly representative price point for a mass-market private condominium in 2026.

Buyer A: SC purchasing first residential property
BSD: S$1,800 + S$3,600 + S$19,200 + S$20,000 = S$44,600
ABSD: 0% × S$1,500,000 = S$0
Total stamp duty: S$44,600 (about 2.97% of purchase price)

Buyer B: SC already owning one residential property (upgrader)
BSD: S$44,600 (same as Buyer A)
ABSD: 20% × S$1,500,000 = S$300,000
Total stamp duty: S$344,600 (about 22.97% of purchase price)

Buyer C: Foreigner (e.g. EP holder, British national)
BSD: S$44,600
ABSD: 60% × S$1,500,000 = S$900,000
Total stamp duty: S$944,600 (about 62.97% of purchase price)

The difference between Buyer A and Buyer C — on the same S$1.5M property — is S$900,000. This is why foreigners buying Singapore residential property typically need to buy at a meaningful discount to replacement cost for the investment to make financial sense.

Figure 3: Total stamp duty (BSD + ABSD) payable by three buyer profiles at three purchase prices (S$800k, S$1.5M, S$2.5M). Left panel: absolute S$ amounts. Right panel: as a percentage of purchase price. Source: IRAS rates; calculations by LovelyHomes.

ABSD Remissions — When You Can Get It Back (or Avoid It)

ABSD paid upfront may be refunded under specific circumstances via ABSD remissions administered by IRAS. The key remissions applicable in 2026 are:

1. SC/SPR Married Couple Remission on Second Property

A married couple in which at least one spouse is a Singapore Citizen, and who together purchase a residential property as their second property, may apply for an ABSD remission — but only if they sell their first residential property within 6 months of the completion of the second purchase (for a completed property) or within 6 months of the TOP of the new property (for an uncompleted unit). The refund is of the ABSD paid on the second purchase. Both spouses must be co-owners on the second purchase to qualify.

This remission is critically important for HDB flat owners considering upgrading to a private property: you must either sell first (and thus hold no property at exercise) or invoke the remission route by selling within 6 months. Many upgraders prefer to sell first to avoid committing S$300,000–S$600,000 of ABSD upfront.

2. Developer ABSD Remission on Residential Development Land

Property developers purchasing land for residential development are subject to 35% ABSD (as entities pay 65%, but licensed developers on qualifying residential land are subject to 35%) with a remission available if the project is completed and all units are sold within the prescribed period — typically 5 years from the date of acquisition for most sites. Projects that do not sell all units within the deadline will have a clawback of the remitted ABSD with interest, which is why Singapore developers have a strong incentive to price aggressively as the deadline approaches.

3. Remissions for Housing Developers — ABSD (Housing Developers) Regime

Under specific circumstances, including the development of public housing or certain integrated developments, additional remission mechanisms may apply. These are complex and project-specific; the developer’s solicitors will advise on eligibility at the time of tender or acquisition.

When Is Stamp Duty Payable?

BSD must be paid within 14 days of signing the OTP (or the Sale & Purchase Agreement if no OTP was issued). ABSD must be paid within 14 days of exercising the OTP (i.e., signing the Sale & Purchase Agreement) or within 14 days of signing the OTP itself if there is no separate exercise. In practice, your solicitor will advise on the precise deadline for your transaction and manage payment on your behalf.

Failing to pay on time attracts penalties: IRAS charges a late payment penalty of up to 10% of the stamp duty amount, plus interest. The clock starts from the execution date, not from when you receive the demand. Most Singapore conveyancing firms send a reminder before the deadline and arrange payment via e-stamping through the IRAS portal.

Paying Stamp Duty Using CPF

Both BSD and ABSD may be paid from the CPF Ordinary Account (OA), subject to the property being eligible for CPF usage. This is a significant benefit for Singapore Citizens and PRs who have built up CPF savings — it means stamp duty does not need to be funded entirely from cash. However, remember that all CPF withdrawals for property are subject to the CPF accrued interest rule: when the property is eventually sold, the CPF principal plus accrued interest (currently 2.5% per annum) must be refunded to your CPF OA before you receive your cash proceeds. This means ABSD paid from CPF today has a compounding cost over the holding period.

Why Stamp Duty Matters for Your Investment Analysis

Stamp duty is not a trivial transaction cost in Singapore — for a second property buyer, it represents a significant upfront capital commitment that materially affects the economics of property investment. A Singapore Citizen buying a second S$2M condominium pays S$69,600 BSD plus S$400,000 ABSD — a combined S$469,600 that is non-refundable (absent the married-couple remission). To break even on that investment, assuming the property appreciates at 3% per annum and the buyer holds for five years, the property needs to appreciate from S$2M to approximately S$2.37M just to recover the stamp duty — before financing costs, maintenance, property tax, and any renovation expenditure.

This is precisely the calculation that has driven the shift in Singapore’s private property market since 2023: the effective entry cost for second-property investors and foreigners has increased substantially, which explains the divergence between first-home buyer activity (robust, because 0% ABSD for SCs) and investor activity (more selective, because the hurdle rate is significantly higher).

Peer comparison: in Hong Kong, the equivalent additional stamp duty for non-residents was set at 30% in 2023 and has since been partially relaxed. Australia charges a foreign buyers’ stamp duty surcharge of 7%–8% at the state level in most jurisdictions. Singapore’s 60% ABSD for foreigners is among the highest residential property transaction taxes in the world.

What Might Come Next — Stamp Duty Outlook

There is no official signal as of July 2026 that the Government intends to revise ABSD rates downward in the near term. The property market has been absorbing the 2023 rates with transaction volumes moderating but prices remaining broadly resilient — particularly in the Core Central Region (CCR), where wealthier buyers have shown a willingness to pay the premium. The Government has made clear that its priority is affordability for Singapore Citizens purchasing their first home, not the investment segment.

What could prompt a revision? Two scenarios are most discussed: first, a sharp cyclical downturn in Singapore residential prices that threatens economic stability and household wealth; second, a regulatory decision that ABSD is no longer necessary as a cooling measure because the market has structurally rebalanced. Neither condition currently applies. The most that market observers speculate is a modest easing of SPR ABSD rates — from 5% to a lower figure for first purchases — if SPR numbers and integration policy makes this desirable. Any changes would be announced in a Budget Statement or a dedicated MAS/MOF press release with immediate effect.

Summary — Key Stamp Duty Facts for 2026

Item	Key Fact
BSD — Who pays	All buyers, residential and non-residential
BSD — Administered by	Inland Revenue Authority of Singapore (IRAS)
BSD — Current schedule	1%/2%/3%/4%/5%/6% (effective 15 Feb 2023)
ABSD — SC first property	0% (exempt)
ABSD — SC second property	20% of purchase price
ABSD — Foreigner	60% of purchase price (any residential property)
ABSD — Joint purchase higher rate	Highest applicable rate governs entire purchase
Payment deadline (BSD & ABSD)	14 days from signing OTP / S&P Agreement
CPF usable for stamp duty?	Yes — from CPF OA, subject to CPF accrued interest rule

Frequently Asked Questions

Does BSD apply to HDB flat purchases?

Yes. BSD applies to every property purchase in Singapore, including HDB resale flats and Build-to-Order (BTO) flats when they are first purchased from HDB. BTO buyers pay BSD on the flat purchase price. Because BTO prices are typically well below S$500,000, the BSD amount is modest — usually S$4,800–S$11,800 for a 4-room or 5-room BTO flat. Resale HDB buyers pay BSD on the resale price (or valuation, if higher). BSD can be paid from the CPF Ordinary Account for HDB flat purchases.

Is ABSD payable on industrial or commercial property?

No. ABSD applies only to residential property. Commercial properties (shophouses, office units, industrial units, strata retail) are subject to BSD only. This distinction is significant for investors: buying a commercial property as a second or third purchase does not trigger ABSD, whereas buying a residential property as a second or third purchase does. This is one reason some Singapore property investors look at commercial assets as a way to deploy capital without incurring the second-property ABSD surcharge.

If I own an overseas property, does that count for ABSD?

For Singapore Citizens and PRs, overseas properties generally do not count when determining the ABSD property count. ABSD counts residential properties situated in Singapore. This means a Singaporean who owns a flat in London can still buy their first Singapore property as an “SC first purchase” at 0% ABSD. However, you must still make a statutory declaration of your property holdings, and IRAS’s lawyers will verify the position. The rules are complex and it is advisable to seek professional legal advice if you own overseas property and are unsure of your ABSD status.

Can I use SRS funds to pay stamp duty?

No. The Supplementary Retirement Scheme (SRS) funds can only be used for investments in specific SRS-approved instruments (such as shares, unit trusts, and insurance) and for retirement withdrawals. Property stamp duties — neither BSD nor ABSD — are an eligible use of SRS funds. Only CPF OA funds can be used to pay stamp duty on eligible property purchases.

I am an Employment Pass holder buying my first property in Singapore. What stamp duty do I pay?

An Employment Pass (EP) holder who is not a Singapore Citizen or PR is treated as a foreigner for stamp duty purposes and pays the full 60% ABSD plus BSD on any residential property purchase. There is no ABSD exemption for EP holders, long-term pass holders, or Entrepass holders. The Government introduced specific relaxations for nationals of certain countries under Free Trade Agreements (the USA, nationals of Iceland, Liechtenstein, Norway, and Switzerland under the EUSFTA-equivalent bilateral arrangements), where the ABSD is reduced to 15% — but these are narrow categories. All other foreigners pay 60%.

What happens if I underpay or make an error on my stamp duty calculation?

IRAS takes stamp duty compliance seriously. If you underpay — whether through an honest calculation error or a deliberate understatement of the property count — IRAS can issue an assessment for the unpaid amount plus a penalty of up to 400% of the unpaid duty. Voluntary disclosure (contacting IRAS before they identify the discrepancy) results in reduced penalties. Your conveyancing solicitor is required to verify stamp duty calculations before submission, which is the primary safeguard against errors in practice.

Disclaimer

This article is produced by LovelyHomes for general information purposes only and does not constitute tax, legal, or financial advice. Stamp duty rates and rules are set by the Government of Singapore and administered by the Inland Revenue Authority of Singapore (IRAS). While every effort has been made to ensure accuracy as at the date of publication (2 July 2026), readers should verify all figures directly with IRAS at iras.gov.sg and obtain independent professional advice — from a licensed conveyancing solicitor and/or a tax adviser — before making any property purchase decision.

Singapore Property Rental Income Tax Guide 2026: IRAS Deductions, Rates and How to File

by Lovelyhomes Editorial Team | Jun 18, 2026 | Buying Guide, Financial Planning, Home Ownership & Living, Investment Analysis, Property Finance, Resources & Tools, Stamp Duties & Taxes, Tax & Legal

Quick Answer: Singapore Rental Income Tax 2026

All rental income from Singapore property is taxable under the Income Tax Act (Cap 134), administered by IRAS.
You may deduct allowable expenses — mortgage interest, property tax, fire insurance, routine repairs, agent fees — to arrive at net taxable rental income.
Capital costs cannot be deducted — no claims for renovations, major upgrades, furniture depreciation, or loan principal repayments.
Tax is levied at personal income tax rates — Singapore tax-resident rates (0–24%) apply; non-residents pay a flat 22% on net rental income.
Filing deadline: 18 April annually — declare via myTax Portal; IRAS auto-includes known data where available.
Late filing or non-declaration attracts penalties — up to 200% of tax undercharged plus potential prosecution under s.96 Income Tax Act.
HDB flat rental has slightly different rules — HDB room rental income is also taxable but sub-let approval and NCQ limits still apply (see our HDB Room Rental Guide 2026).

Owning an investment property in Singapore comes with one certainty beyond market cycles: your rental income is taxable. Whether you own a one-bedroom condominium in Tiong Bahru, a shophouse unit in Tanjong Pagar, or a landed property in Upper Bukit Timah that you lease out whilst residing abroad, the Inland Revenue Authority of Singapore (IRAS) expects you to declare that rental income each year.

Yet many Singapore landlords — especially first-time investors who upgraded from an HDB flat — under-declare or over-pay because they misunderstand which deductions IRAS allows. This guide sets out the complete picture: what qualifies as rental income, which expenses are deductible, how the tax is calculated, and how to file correctly by 18 April each year.

What Counts as Rental Income in Singapore?

Under section 10(1)(f) of the Income Tax Act, rental income includes all amounts received or receivable by a person in respect of the letting of any property located in Singapore. This covers:

Gross rent — the monthly or annual sum paid by your tenant under the tenancy agreement.
Lease premiums — any upfront lump-sum payment to secure the tenancy is spread over the lease term and taxed proportionately.
Furniture and fittings rent — if your tenancy agreement splits the total into “base rent” and a “furniture allowance”, both components are taxable rental income.
Reimbursed expenses — if your tenant pays your utility bills or property tax and these are included in the rent, the gross amount is your rental income (before the deduction).
Compensation for early termination — amounts received from tenants for breaking a tenancy early are treated as rental income for the period the tenancy was broken.

Rental income from overseas property is generally not taxable in Singapore (as Singapore uses a territorial tax system), provided the funds are not remitted into Singapore. From 1 January 2024, certain foreign-sourced income remitted to Singapore by individuals is taxable; consult a licensed tax adviser if you hold overseas investment property.

IRAS allowable rental deductions Singapore 2026 table showing mortgage interest property tax maintenance fees as deductible and renovation loan principal as non-deductible — Figure 1: IRAS Allowable vs Non-Allowable Rental Deductions — Singapore 2026. Source: IRAS (iras.gov.sg)

Allowable Deductions: What You Can Claim Against Rental Income

IRAS allows landlords to deduct expenses that are wholly and exclusively incurred in the production of rental income and are revenue in nature (not capital). The following are the main allowable deductions in 2026:

1. Mortgage Interest

The interest portion of your monthly bank or HDB loan repayment is fully deductible. Only the interest element qualifies — loan principal repayments are capital and cannot be deducted. If you have a floating-rate loan, use the actual interest charged each year. Most banks issue an annual statement splitting principal and interest for your records.

2. Property Tax

Annual property tax paid to IRAS on the investment property is deductible. Note: you are claiming the tax as an expense against rental income — this is separate from your residential property tax obligation on your own home. The deduction is for the property tax assessed on the rented property for the year.

3. Fire Insurance Premium

Fire insurance premiums covering the property during the rental period are allowable. If your policy covers a period spanning two tax years (e.g., July 2025 to July 2026), apportion the premium to the relevant year.

4. Routine Maintenance and Repairs

Costs of maintaining the property in its existing condition — plumbing repairs, repainting, replacing faulty fixtures — are deductible. Improvements that enhance the property’s value or extend its life (a new built-in wardrobe, a replacement air-conditioning system that upgrades the previous one) are capital expenditure and not deductible.

5. Agent Commission and Advertising

Letting fees paid to a licensed property agent, including a one-time commission upon signing the tenancy agreement, are deductible. Advertising costs (online listings, print advertisements) for finding tenants are similarly allowable. These are expenses incurred in earning the rental income.

6. Legal Fees for Tenancy

Solicitor’s fees for drafting or reviewing a tenancy agreement are deductible. Legal costs for acquiring or disposing of the property are capital and not deductible.

What You Cannot Deduct

IRAS explicitly disallows: renovation costs, capital improvements, furniture and fittings depreciation (Singapore has no wear-and-tear allowance for residential property), loan principal repayments, mortgage protection insurance premiums, costs incurred during vacancy periods when no rent is being earned, and any expense that is not wholly connected to earning the rental income.

How Singapore Income Tax Applies to Rental Income

Rental income does not attract a separate tax — it is added to your other assessable income (employment income, trade income, director’s fees) and taxed at your marginal personal income tax rate under the resident progressive rate schedule, effective Year of Assessment (YA) 2024 onwards:

Chargeable Income (SGD)	Rate on Band	Cumulative Tax
First $20,000	0%	$0
Next $10,000 ($20K–$30K)	2%	$200
Next $10,000 ($30K–$40K)	3.5%	$550
Next $40,000 ($40K–$80K)	7%	$3,350
Next $40,000 ($80K–$120K)	11.5%	$7,950
Next $40,000 ($120K–$160K)	15%	$13,950
Next $40,000 ($160K–$200K)	18%	$21,150
Next $40,000 ($200K–$240K)	19%	$28,750
Next $40,000 ($240K–$280K)	19.5%	$36,550
Next $40,000 ($280K–$320K)	20%	$44,550
Above $320,000	22% – 24%	progressive

Non-resident landlords pay a flat 22% on net rental income with no personal reliefs available. This applies to individuals not ordinarily resident in Singapore for 183 days or more in the relevant year. Non-residents must also file a Singapore tax return and may be required to appoint a local tax agent.

Rental income estimated annual tax at five monthly rent levels Singapore 2026 IRAS income tax — Figure 2: Gross vs Net Rental Income and Estimated Annual Income Tax at Five Monthly Rent Levels — Singapore 2026. Illustrative only; actual tax depends on your total chargeable income profile.

Worked Example: Renting Out a Private Condo in 2026

The Wong family — Singapore Citizens, joint owners of a 2-bedroom condominium in Kallang. Gross monthly rent: $3,200. Mr Wong earns $9,500/mth in employment income.

Item	Amount
Gross annual rent (Jan–Dec 2025)	$38,400
Less: Mortgage interest (POSB Home Loan statement)	($9,600)
Less: Annual property tax (non-owner-occupied)	($3,200)
Less: Fire insurance premium	($520)
Less: Routine maintenance / A/C servicing / plumbing	($1,100)
Less: Agent commission (1 month’s rent)	($3,200)
Net taxable rental income (YA 2026)	$20,780
Mr Wong’s employment income (declared separately)	$114,000
Total chargeable income (after personal reliefs ~$37,000)	~$97,780
Incremental tax on rental income at ~11.5% marginal rate	~$2,389/yr
Net rental income after tax (monthly)	~$1,516/mth

Key takeaway: after deductions and tax, Mr Wong nets approximately $1,516 per month from the $3,200 gross rent. This is not a criticism of property investment — the capital appreciation on the condo adds significantly to total returns — but it illustrates why landlords who model only gross rent make poor investment decisions.

How to File: IRAS myTax Portal Step by Step

How to declare rental income to IRAS Singapore 2026 step by step myTax Portal filing process — Figure 3: Rental Income Tax Filing Process — Seven Steps from Documents to Tax Payment, Singapore 2026. Source: IRAS

IRAS auto-populates most employment income figures via the Auto-Inclusion Scheme (AIS), but rental income is not auto-included — landlords must declare it manually. The process in practice:

Gather your documents by January of the filing year: tenancy agreement, bank loan annual statement (splitting principal and interest), IRAS property tax assessment, insurance policy, receipts for maintenance and agent fees.
Log in to myTax Portal at mytax.iras.gov.sg using Singpass MFA.
Navigate to “File Individual Income Tax (Form B1)” (for employees with rental income) or Form B (for self-employed) — complete the rental income section under “Other Income”.
Enter gross rental income and each allowable deduction separately. IRAS will compute net rental income automatically.
Submit by 18 April (e-filing; paper returns are due 15 April).
Receive your Notice of Assessment (NOA) by post or via myTax Portal. Review for accuracy — you have 30 days from the NOA date to object if there is an error.
Pay by the due date on the NOA — via GIRO, PayNow, internet banking, or at AXS/SingPost counters.

Tip: IRAS’s Rental Relief Framework introduced during the COVID-19 period (2020–2021) has fully expired. No rental income relief is available in YA 2026 under COVID measures.

Why Rental Income Tax Matters for Singapore Property Investors

Singapore has relatively low income tax rates compared with most developed markets — the top marginal rate of 24% (above $1M) is far below the UK’s 45%, Australia’s 47%, or Hong Kong’s 17% salaries tax. Even at the 15–18% band that most mid-income investors land in, the after-tax rental yield for a well-located condo is typically positive. However, failing to account for IRAS obligations when underwriting a property purchase leads to three common errors:

Overestimating net yield — a $3,200/mth gross rent may look like a 3.2% yield on a $1.2M property, but after allowable deductions and tax, the true cash yield is closer to 1.8–2.2%.
Missing deductions — many landlords forget to claim mortgage interest (the largest deductible item) because they use CPF OA funds for repayment and assume no cash changes hands. IRAS allows the interest deduction regardless of whether the repayment comes from CPF or cash.
Commingling ABSD strategy with tax strategy — if you held your HDB flat and purchased a condo (20% ABSD, with remission on HDB sale within 6 months), you must still declare rental income on the condo during the period you hold both properties. The ABSD framework and the rental income tax regime are entirely separate systems administered by different IRAS divisions.

For investors holding multiple properties, maintaining a separate rental income tracker for each property and reconciling it quarterly against bank statements is strongly recommended. This significantly simplifies April filing.

What Might Come Next: Rental Income Tax Outlook

The following is forward-looking speculation based on publicly available commentary and budget signals — it does not constitute tax advice.

IRAS has signalled no changes to the rental income tax framework for YA 2026 or YA 2027. However, two areas bear watching:

Foreign-sourced income changes: Following the 2022 changes that brought certain foreign passive income (dividends, interest) into the Singapore tax net when remitted, there is ongoing policy debate about whether foreign rental income should similarly be taxable upon remittance. As at June 2026, rental income from overseas properties remains outside Singapore’s tax net if not remitted, but high-net-worth landlords with overseas portfolios should monitor any Budget 2027 announcements.
Non-owner-occupied property tax alignment: The graduated non-owner-occupied property tax rates (10–20%, increased in 2023) may be reviewed in future budgets to further discourage speculative holding. Higher property tax would paradoxically increase allowable deductions for landlords, but would also compress investment yields.
Platform reporting: IRAS has been expanding its data-matching capabilities via MAS and regulatory partnerships. Rental income declared through platforms like 99.co, PropertyGuru, and Airbnb may eventually be subject to third-party reporting obligations similar to the GST framework for digital services.

Rental Income Tax in Context: Singapore vs Regional Peers

Singapore’s approach to taxing rental income is broadly aligned with other developed economies, but its relatively modest rates and clear deduction framework make it more landlord-friendly than most. In Malaysia, rental income above RM70,000 is taxed at 24%; in Australia, negative gearing laws allow interest losses to offset other income but the effective capital gains tax erodes returns on sale; in Hong Kong, property tax is levied as a flat 15% on net rental income (gross rent less 20% statutory allowance) regardless of actual expenses. Singapore’s expense-based deduction regime — whilst requiring more documentation — is generally more accurate and beneficial for highly leveraged investors with large mortgage interest deductions.

Frequently Asked Questions: Rental Income Tax Singapore 2026

Can I claim mortgage interest if I use CPF OA to pay my loan?

Yes. IRAS allows the deduction of mortgage interest regardless of whether you use CPF Ordinary Account funds or cash to service your loan repayments. You can obtain the annual mortgage interest figure from your bank’s annual statement or CPF Board’s online portal. Only the interest portion is deductible — not the principal reduction.

What if my property is vacant for part of the year? Can I still claim expenses?

Only expenses incurred during periods when the property is genuinely available for rent can be claimed. If the property is vacant between tenancies whilst you are actively seeking a new tenant, IRAS generally accepts a proportionate deduction. However, if the property is vacant because you are using it personally, renovating it, or simply leaving it idle, expenses during that period are not deductible. Keep records of advertising and agent correspondence to demonstrate active letting intent during vacancy.

Is rental income taxed if I rent out a room in my HDB flat?

Yes — all rental income from HDB flats and private property is taxable. For HDB flat room rentals, you must obtain HDB’s approval to sub-let, comply with the Non-Citizen Quota (NCQ), and declare the rental income to IRAS annually. You may deduct a proportionate share of allowable expenses (interest, property tax) corresponding to the rented portion. See our Singapore HDB Room Rental Guide 2026 for the full framework including NCQ limits and approval conditions.

Can I deduct renovation costs from rental income?

No. Renovation and improvement costs are capital expenditure and are not deductible against rental income under Singapore tax law. This applies even if the renovation was undertaken specifically to attract higher-paying tenants. IRAS distinguishes between revenue expenditure (maintaining the property in its existing state) and capital expenditure (enhancing or extending the property). Routine maintenance such as repainting, replacing like-for-like fixtures, and servicing appliances qualifies as revenue expenditure and is deductible; a full kitchen overhaul or bathroom extension does not.

What penalties apply if I under-declare rental income?

Under section 94 of the Income Tax Act, omitting income from a tax return without reasonable excuse attracts a penalty of twice the tax undercharged (200% penalty). Fraudulent under-declaration under section 96 can result in up to treble the tax undercharged plus a fine of up to $10,000 and imprisonment. IRAS has access to HDB records, URA caveats, and banking data — undeclared rental income identified through these channels is aggressively pursued. The most cost-effective approach is voluntary compliance and accurate declaration.

How does IRAS treat short-term rentals (e.g., Airbnb / serviced apartments)?

Short-term accommodation of private residential property — rentals shorter than three consecutive months per tenant — is generally not permitted under the Planning Act without URA approval, and HDB flats may not be sub-let on a short-term basis at all. Where such rentals are authorised (typically in government-approved short-stay projects), the income is taxable as rental income under the Income Tax Act. Platforms that facilitate short-stay bookings may be subject to IRAS data-matching. Unauthorised short-term rentals carry planning enforcement risk in addition to tax exposure.

Do joint owners each declare their share of rental income separately?

Yes. If a property is jointly owned, rental income and deductible expenses are allocated to each owner in proportion to their beneficial interest (ordinarily 50:50 for joint tenants, or as specified in a tenancy-in-common arrangement). Each owner declares their respective share independently in their personal income tax return. There is no joint filing option for property rental in Singapore. In practice, joint owner couples often find this beneficial if one spouse is in a lower tax bracket — the aggregate tax burden may be lower than if only the higher-earner declared the full rental income.

Related LovelyHomes Guides

Disclaimer: This guide is for general educational purposes only and does not constitute tax, financial, or legal advice. Singapore tax law is subject to change; rates and rules above reflect the position as at June 2026. For specific advice on your rental income tax obligations, consult a qualified tax adviser or accredited tax practitioner (ATP) registered with IRAS. Official resources: iras.gov.sg, IRAS Rental Income and Expenses page.

Singapore Annual Property Tax Guide 2026: Annual Value, IRAS Rates and 2026 Rebate Explained

by Lovelyhomes Editorial Team | Jun 13, 2026 | Buying Guide, Home Ownership & Living, Investment Analysis, Laws, Regulations & Policies, Property Finance, Resources & Tools, Stamp Duties & Taxes

🏠 Quick Answer: Singapore Property Tax 2026

Property tax is administered by IRAS and is charged on all Singapore real estate annually, including HDB flats, private condominiums, landed homes, and commercial premises.
Annual Value (AV) is the estimated gross annual rent your property could fetch if rented out unfurnished — this is the tax base, not the market price.
Owner-occupiers enjoy subsidised rates starting at 0% on the first S$12,000 AV, rising progressively to 32% above S$140,000 AV.
Investment/rental properties face much higher non-owner-occupier (non-OO) rates: 12%–36% progressive, with no zero-rate band.
2026 rebate: 15% off for owner-occupied HDB flats; 10% off (capped at S$500) for owner-occupied private properties.
Payment deadline is 31 January of each year. IRAS sends tax bills in December for the following calendar year.
You can appeal your AV within 30 days of the date of the Valuation Notice if you believe it is incorrect.
HDB flats typically pay S$0–S$300/year as an owner-occupier; a high-floor CCR condo could pay S$2,000–S$10,000+ as a non-owner-occupier.

What Is Property Tax in Singapore?

Property tax is an annual levy imposed by the Inland Revenue Authority of Singapore (IRAS) on all Singapore real estate — from HDB flats and executive condominiums to freehold condominiums, landed houses, and commercial buildings. Unlike stamp duties (one-time taxes payable on purchase), property tax recurs every calendar year for as long as you own the property.

The legal authority is the Property Tax Act (Cap. 254). IRAS administers the tax, determines the Annual Value of every property in Singapore, and issues tax bills each December. The bill covers the entire following calendar year (January to December), with payment due by 31 January.

Unlike income tax, property tax is charged regardless of whether you actually earn rental income from the property. An owner living in his own home pays property tax — just at the preferential owner-occupier rates. An investor who leaves a condo vacant still pays the full non-owner-occupier rate.

Annual Value (AV): The Tax Base

The cornerstone of Singapore’s property tax system is the Annual Value (AV) — not the market price of your property. IRAS defines AV as the estimated gross annual rent a property would command on the open market if let in its unfurnished state, excluding furniture, fittings, and service charges.

IRAS determines AV by referencing actual comparable rental transactions in the same building or nearby comparable developments. For HDB flats, IRAS analyses registered HDB rental contracts; for private condominiums, it cross-references URA’s Realis caveats database. AV is reviewed continuously and can change when rental markets shift significantly.

You can check your property’s current AV free of charge via the IRAS “View Property Summary” digital service at myTax.iras.gov.sg. You will need your Singpass login. For a broader view of comparable rental transactions used to set AVs, the URA Renting Property portal publishes registered rental contract data quarterly.

Typical AV ranges for 2026 (illustrative, IRAS-assessed):

Property Type	Typical AV Range (S$ p.a.)	Owner-OO Tax	Non-OO Tax
HDB 2-room flat	$6,600 – $7,800	$0 – $0	$792 – $936
HDB 3-room flat	$8,400 – $9,600	$0 – $0	$1,008 – $1,152
HDB 4-room flat	$9,600 – $11,400	$0	$1,152 – $1,368
HDB 5-room flat	$12,000 – $14,400	$0 – $96	$1,440 – $1,728
1BR condo (OCR)	$18,000 – $22,000	$240 – $560	$2,160 – $2,640
2BR condo (OCR)	$24,000 – $32,000	$800 – $1,440	$2,880 – $3,840
2BR condo (CCR)	$36,000 – $52,000	$2,000 – $4,440	$4,320 – $6,240
Landed terrace	$60,000 – $90,000	$5,800 – $11,600	$11,040 – $19,440
Good Class Bungalow	$140,000 – $300,000+	$36,800+	$50,400+

Singapore property tax effective rate comparison owner-occupier vs investment 2026 — Figure 1: Effective property tax rate at various Annual Value levels — owner-occupier (pink) vs investment property (navy). At AV $30,000 (typical OCR 2BR condo), an owner-occupier pays an effective rate of ~2.7% while an investor pays 12%. Source: IRAS, LovelyHomes analysis.

The Two Property Tax Rate Schedules

Owner-Occupier (OO) Rates — Effective 1 January 2025

If you live in the property as your principal place of residence, you qualify for the owner-occupier rate, the most favourable schedule. You may only have one owner-occupier property at a time. To claim the OO rate on your private property, you must notify IRAS and you will lose the OO concession for any other property you own.

Annual Value Band (S$)	Marginal Rate	Tax on Band	Cumulative Tax
First $12,000	0%	$0	$0
Next $28,000 ($12,001–$40,000)	4%	$1,120	$1,120
Next $10,000 ($40,001–$50,000)	6%	$600	$1,720
Next $25,000 ($50,001–$75,000)	10%	$2,500	$4,220
Next $10,000 ($75,001–$85,000)	14%	$1,400	$5,620
Next $15,000 ($85,001–$100,000)	20%	$3,000	$8,620
Next $40,000 ($100,001–$140,000)	26%	$10,400	$19,020
Above $140,000	32%	Progressive	$19,020+

For most Singaporeans in HDB flats, AV falls below S$14,400. Owners of a 4-room flat with AV ~S$10,500 pay zero property tax under the owner-occupier schedule.

Non-Owner-Occupier (Non-OO) Residential Rates — Effective 1 January 2025

If you own a residential property that you do not live in — whether rented out, left vacant, or held as a second home — you pay the non-owner-occupier rate. This applies to all Buy-to-Let investors, owners of multiple private properties, and HDB flat owners who have rented out their entire flat.

Annual Value Band (S$)	Marginal Rate	Tax on Band	Cumulative Tax
First $30,000	12%	$3,600	$3,600
Next $15,000 ($30,001–$45,000)	20%	$3,000	$6,600
Next $15,000 ($45,001–$60,000)	28%	$4,200	$10,800
Above $60,000	36%	Progressive	$10,800+

Non-Residential Property Rates

Commercial properties, industrial units, offices, and shophouses are taxed at a flat 10% of AV regardless of owner-occupancy status. There is no progressive schedule for non-residential properties.

Annual property tax payable by Singapore property type HDB condo landed 2026 — Figure 2: Annual property tax payable in S$ by property type and occupancy status (2026). HDB owner-occupiers pay S$0–S$100; a CCR condo investor with AV $44,000 pays S$6,600/year. Source: IRAS rates, LovelyHomes calculations.

The 2026 Property Tax Rebate

As part of the Government’s cost-of-living support measures, IRAS is granting a one-off property tax rebate for 2026:

Owner-occupied HDB flats: 15% rebate on the property tax payable, automatically credited against the bill.
Owner-occupied private residential properties: 10% rebate, capped at S$500 per property.

The rebate is applied automatically — you do not need to apply. It appears as a credit on your December 2025 property tax bill (covering calendar year 2026). For an HDB 4-room flat owner who would otherwise pay S$0, the rebate has no dollar impact. For a private condo owner paying S$3,000 in property tax, the rebate saves S$300 (10%), bringing the bill to S$2,700.

Singapore property tax 2026 rebate HDB private and rate history chart — Figure 3: (Left) 2026 property tax rebate savings by property type — HDB owners save up to S$45 at 15%; private property owners save up to S$500 at 10%. (Right) Top marginal rate trajectory 2013–2026 — owner-occupier top rate climbed from 6% to 32% between 2022 and 2025; non-OO from 10% to 36%. Source: IRAS, Singapore Budget.

Rate Progression History: How We Got Here

Singapore’s property tax rates have risen sharply since 2022 as the government sought to moderate a surging residential market and reduce speculative demand. The changes came in three stages:

2013: Owner-occupier top rate was 6%; non-OO was 10% flat.
February 2022 Budget: Announced major rate hikes effective 1 January 2023 — OO top bracket up to 20%, non-OO up to 27%.
February 2023 Budget: Second round of increases effective 1 January 2024 — OO top rate up to 24%, non-OO up to 34%.
February 2024 Budget: Final tranche effective 1 January 2025 — OO top rate reaches 32%, non-OO reaches 36%.

These increases were explicitly framed by the Ministry of Finance as wealth redistribution measures: those who own expensive properties — particularly investors holding multiple units — should contribute more to Singapore’s fiscal coffers. Most HDB owner-occupiers were deliberately shielded by the zero-rate band on the first S$12,000 AV.

Worked Example: Property Tax Across Three Buyer Profiles

Case Study: The Chens — Three Properties, Three Tax Bills

Property A — HDB 4-room flat, Tampines (Owner-Occupied)
AV: S$10,800. Tax: 0% × S$10,800 = S$0. After 15% HDB rebate: still S$0. Property tax is not a meaningful cost for HDB owner-occupiers in 2026.

Property B — 2-bedroom condo, Pasir Ris OCR (Rented out at S$2,600/month)
AV: Approximately S$31,200 (IRAS uses comparable rental of S$2,600/mth × 12 = S$31,200).
Non-OO tax: 12% × S$30,000 + 20% × S$1,200 = S$3,600 + S$240 = S$3,840/year.
Effective rate: 12.3% of AV. Annual rental income: S$31,200. Tax as % of gross rent: 12.3%.

Property C — 3-bedroom condo, Orchard CCR (Owner-Occupied, not rented)
AV: S$78,000 (comparable CCR 3BR rental ~S$6,500/mth).
OO tax: S$0 × S$12k + 4% × S$28k + 6% × S$10k + 10% × S$25k + 14% × S$3k
= S$0 + S$1,120 + S$600 + S$2,500 + S$420 = S$4,640/year.
After 10% private rebate (capped S$500): S$4,640 − S$464 = S$4,176.
If not owner-occupied: 12% × S$30k + 20% × S$15k + 28% × S$15k + 36% × S$18k = S$3,600 + S$3,000 + S$4,200 + S$6,480 = S$17,280/year — a S$13,104 annual difference, underscoring the significant benefit of the owner-occupier status.

How to Check, Appeal, and Pay Your Property Tax

Checking your AV: Log in to myTax.iras.gov.sg with Singpass and navigate to “View Property Summary”. This shows your current AV, the tax payable, and the last AV revision date. The service is free.

Appealing your AV: If you believe your AV is too high, you may file an objection with IRAS within 30 days of the Valuation Notice date. Submit evidence of comparable rentals (signed tenancy agreements for similar units in the same block or nearby) via the IRAS Object to Annual Value digital service. IRAS will review and notify you of its decision. If still dissatisfied, you may appeal to the Valuation Review Board (VRB) — an independent tribunal — within 30 days of IRAS’s written decision.

Paying your bill: Payment is due by 31 January each year. IRAS offers GIRO (monthly GIRO instalments spread across the year), PayNow, AXS, SAM, internet banking, and cheque. Paying by GIRO avoids the lump-sum January payment. Late payment attracts a 5% penalty on the unpaid amount, plus additional 1% per month thereafter.

What Property Tax Means for Investors and Landlords

For Buy-to-Let investors, property tax is a deductible expense against rental income for income tax purposes. An investor owning a condo earning S$36,000/year in rent and paying S$6,600 in property tax can deduct the S$6,600 against the S$36,000 gross rental income before computing individual income tax liability, alongside other allowable expenses (mortgage interest, maintenance fees, repairs, and agent commission).

However, the sharp non-OO rate increases since 2023 have meaningfully compressed net rental yields. An OCR condo with AV S$28,000 generating S$28,000 gross rent now pays S$3,360 property tax (non-OO) — that’s 12% of gross rent consumed immediately, before mortgage, maintenance, and vacancy. Gross yields of 4–5% compress further once property tax is factored in.

International comparison: Singapore’s property tax regime is more aggressive than Hong Kong’s (which charges a flat 15% on net rental income) but less heavy than the UK’s (where stamp duty surcharges and income tax rates can exceed 50% of rental income for higher-rate taxpayers). The ABSD and high non-OO property tax together signal that Singapore intends to keep the residential market primarily owner-occupier.

What Might Come Next

The government has signalled that the 2025 rates are the “final tranche” of the three-stage increase announced in 2022. No further rate hikes are publicly planned as at June 2026. However, Annual Values are reviewed continuously — if rental markets soften materially (as they did slightly in early 2026 with URA’s private rental index dipping -1.2% QoQ in Q1 2026), IRAS may lower AVs, which would reduce tax bills. Conversely, if rents rise, AVs follow.

The one-off 2026 rebate for HDB and private owner-occupiers is not guaranteed to recur in 2027 — it was explicitly framed as a cost-of-living support measure tied to the Singapore Budget. Owners should plan their finances on the full pre-rebate rate as a conservative baseline.

Frequently Asked Questions

If I live in my HDB flat, do I really pay zero property tax?

Yes, in most cases. HDB flats have Annual Values between S$6,600 (2-room) and S$14,400 (5-room executive). The owner-occupier rate is 0% on the first S$12,000 of AV. A 5-room flat with AV S$13,200 attracts 4% on S$1,200 = just S$48/year. After the 15% HDB rebate in 2026, the bill reduces to approximately S$41. For a standard 4-room flat with AV S$10,500, the tax is genuinely S$0.

I own two properties — can I get the owner-occupier rate on both?

No. The owner-occupier rate may only be applied to one property at a time — the one you actually reside in as your principal place of residence. Your second property will be taxed at the non-owner-occupier rate regardless of whether it is rented out or left vacant. You should notify IRAS which property is your principal residence via the “Apply for Owner-Occupier Tax Rates” service at myTax.iras.gov.sg.

How is Annual Value determined for a brand-new development with no rental history?

For newly completed developments, IRAS references rental transactions from comparable properties in the same area. If the building itself has no rental history, IRAS looks at similar-size units in nearby developments of comparable age, location, and facilities. The AV is typically set conservatively for the first year and revised once actual rental data is available. Developers of new launches do not pay property tax during construction; the tax liability begins from the date the Temporary Occupation Permit (TOP) is issued.

My tenant is paying rent. Can I deduct the property tax from my rental income for income tax purposes?

Yes. Property tax paid on a rental property is a deductible expense under Section 14 of the Income Tax Act. You deduct the actual property tax paid during the year from your gross rental income when computing your net rental income assessable for personal income tax. You may also deduct mortgage interest (on the portion attributable to the rental property), maintenance and management fees, fire insurance premiums, and cost of repairs — but not capital improvements. Keep IRAS payment receipts as documentation.

I have just sold my property mid-year — do I still owe property tax for the full year?

Property tax is a liability of the owner at the start of each calendar year (1 January). If you sell mid-year, the buyer and seller conventionally apportion the property tax on a pro-rata daily basis as part of the completion accounts, managed by the conveyancing lawyers. IRAS does not issue a partial-year bill — the annual bill remains in the seller’s name until the property is transferred. After completion, IRAS updates the ownership record and future bills go to the buyer. The apportionment in the completion accounts is a private contractual matter between buyer and seller.

Does ABSD or SSD affect my property tax?

No. ABSD (Additional Buyer’s Stamp Duty) and SSD (Seller’s Stamp Duty) are one-time transactional taxes applied at purchase or sale. Property tax is a separate recurring annual obligation based on the Annual Value of the property. ABSD and SSD do not count as property tax, and the payment of one does not affect the other. However, owning multiple properties increases your aggregate property tax burden since each additional property (typically non-owner-occupied) attracts the higher non-OO rate of 12%–36%.

What happens if I miss the 31 January property tax deadline?

IRAS imposes an immediate 5% late payment penalty on the unpaid amount. If the tax remains unpaid after the penalty notice, an additional 1% per month is charged. Persistent non-payment can lead to IRAS registering a charge on your property title, garnishing your bank account, or taking legal action. If you anticipate difficulty paying, contact IRAS before the due date to arrange an instalment plan — IRAS is generally flexible with genuine hardship cases, especially if you contact them proactively before the deadline.

Disclaimer

This article is for general informational purposes only and does not constitute tax, legal, or financial advice. Property tax rates, Annual Values, rebate arrangements, and IRAS administrative procedures are subject to change by the Singapore government at any time. Readers should verify current rates directly with the IRAS Property Tax portal and consult a licensed tax advisor or property lawyer for guidance specific to their circumstances. IRAS may be contacted at 1800-356-8300 (toll-free) or via the Ask Jamie chatbot at myTax.iras.gov.sg.

Commercial Property Investment Singapore 2026: No ABSD, GST, Types & Yields Guide

by Lovelyhomes Editorial Team | May 10, 2026 | Buying Guide, Investment Analysis, Laws, Regulations & Policies, Property Investment, Resources & Tools

Quick Answer — Commercial Property Investment Singapore 2026

No ABSD — commercial property attracts 0% Additional Buyer’s Stamp Duty regardless of your citizenship, residency status, or number of properties owned.
No Residential Property Act restrictions — foreigners may purchase strata commercial units (offices, retail, shophouses) without special approval.
GST applies — if the seller is GST-registered, you pay 9% GST on the purchase price. This is the single largest “hidden” cost for commercial buyers.
Lower LTV — banks typically lend up to 55% (first commercial purchase) versus 75% for residential. Expect to deploy more equity upfront.
No SSD — Seller’s Stamp Duty does not apply to commercial property; you can sell at any time without a holding-period penalty.
Gross yields of 3.5–6.5% — strata offices and industrial units typically yield more than residential condos, but capital appreciation potential is generally lower.
Four main types — strata office, strata retail / shophouse, industrial (B1/B2), and conservation shophouse each have distinct lease terms, tenant profiles, and yield bands.
GST registration threshold — if your commercial rental income exceeds S$1 million per annum, you must register for GST and charge 9% to tenants.

What Is Commercial Property Investment in Singapore?

Singapore’s commercial real estate market encompasses office towers, retail podiums, shophouses, industrial buildings, and mixed-use developments. Unlike residential property, commercial assets are not governed by the Residential Property Act and are not subject to Additional Buyer’s Stamp Duty (ABSD) — making them a popular route for investors seeking rental income or portfolio diversification without the stamp-duty burden that residential purchases now carry.

Commercial property is regulated by the Urban Redevelopment Authority (URA) for planning matters, IRAS (Inland Revenue Authority of Singapore) for stamp duties and GST, and the Monetary Authority of Singapore (MAS) for financing rules. The key legislation governing transactions includes the Stamp Duties Act, the Goods and Services Tax Act, and the Land Titles Act.

Singapore commercial property types and rental yields comparison 2026 — Figure 1: Singapore commercial property types, key attributes, and indicative gross rental yields (2026). Source: URA/IRAS.

Key Types of Commercial Property in Singapore

The four main categories relevant to individual investors are strata offices, strata retail units, industrial properties, and conservation shophouses. Each carries a different lease tenure, typical tenant profile, yield band, and financing environment.

Strata Office Units

Strata offices are individual floors or partial-floor units in commercial buildings, sold as separate titles. Found predominantly in the Central Business District, Orchard, and Jurong Lake District, these units are popular with SME owner-occupiers and yield-seeking investors. Gross yields range from approximately 3.5% to 5.0% in 2026, with CBDpremium offices at the lower end and suburban offices at the higher end. Buildings may be freehold or 99-year leasehold; the distinction affects both capital values and bank financing terms.

Strata Retail Units and Conservation Shophouses

Retail strata units — including ground-floor shop spaces in mixed-use developments — offer yields of roughly 3.0% to 4.5%, with location being the dominant driver. Conservation shophouses (two- to three-storey terraced buildings in gazetted areas such as Chinatown, Little India, and Kampong Glam) are a distinct asset class. Most are freehold with strong scarcity value; gross yields typically run at 2.5% to 4.0%, but capital appreciation has historically been robust. The URA’s conservation guidelines impose strict rules on external façade alterations, which investors must factor into refurbishment budgets. LTV for shophouses tends to be lower — around 40% — because banks treat them as specialised assets.

Industrial Property (B1 and B2)

Industrial property in Singapore is stratified by use type: B1 (clean/light industrial) allows uses compatible with a residential environment, while B2 (general industrial) permits heavier manufacturing and logistics. Most industrial land is leased from JTC Corporation at 30- to 60-year tenures, depressing capital values but pushing gross yields to 4.5%–6.5% — the highest of the four main types. Key clusters include Jurong, Tuas, Ubi, and Tai Seng. Since September 2017, resale of strata industrial units is permitted only to end-users for the first three years, a rule introduced by the Ministry of Trade and Industry to curb speculation. Foreigners may invest in industrial property without additional restrictions.

ABSD rates residential vs commercial property Singapore 2026 — Figure 2: ABSD rates by buyer profile — residential vs commercial. Commercial property carries 0% ABSD for all buyer profiles. Source: IRAS 2026.

Why Commercial Property Attracts Zero ABSD

ABSD was introduced in December 2011 (and significantly increased in April 2023) specifically to cool demand in the residential housing market, which the government regards as a social good requiring price stability. Commercial and industrial properties serve business rather than shelter needs, and are therefore entirely outside ABSD’s ambit. This means a foreign investor purchasing a strata office pays the same stamp duties as a Singapore Citizen — solely Buyer’s Stamp Duty (BSD) at the standard progressive rates.

BSD rates on commercial property in 2026 are: 1% on the first S$180,000, 2% on the next S$180,000, 3% on the next S$640,000, 4% on the next S$500,000, 5% on amounts from S$1.5 million to S$1 billion, and 6% above S$1 billion. This mirrors the residential BSD schedule and was last revised in Budget 2023.

GST: The Hidden Cost Most Buyers Underestimate

Goods and Services Tax at 9% (effective 1 January 2024) applies to commercial property transactions where the seller is GST-registered. This is separate from BSD and is payable on the purchase price or market value, whichever is higher. On a S$2 million strata office, GST alone adds S$180,000 to the cost — a sum larger than the BSD on the same transaction. Buyers should always verify the seller’s GST registration status via the IRAS MyTax Portal before committing to an Option to Purchase.

If you are purchasing the commercial property for your own GST-registered business, you can claim the input tax credit — effectively recovering the GST through your quarterly GST returns. Investors who are not GST-registered absorb the full 9% as an acquisition cost. Rental income from commercial tenants must also include 9% GST if your annual rental income (across all commercial properties) exceeds S$1 million.

Stamp duties and GST on Singapore commercial property 2026 — Figure 3: Full summary of stamp duties and GST applicable to Singapore commercial property purchases and leases. Source: IRAS 2026.

Financing Commercial Property in Singapore

Commercial property loans are not subject to MAS’s Total Debt Servicing Ratio (TDSR) framework in the same way residential mortgages are — though banks still apply their own stress-testing. The Loan-to-Value (LTV) ceiling for a first commercial property loan is approximately 55%, compared to 75% for a first residential property. This reflects the higher perceived risk of commercial assets. Expect to deploy at least 45% equity plus BSD, GST (if applicable), and legal fees on day one.

Interest rates on commercial loans are typically 20–50 basis points higher than equivalent residential loans, reflecting the lower liquidity and higher vacancy risk of commercial assets. Loan tenures are shorter — typically 25 to 30 years maximum for freehold assets, and capped at remaining lease term minus 5 years for leasehold properties. Conservation shophouses, viewed as specialised collateral, often face tighter LTV of around 40%.

Key Facts Summary

Parameter	Residential Condo	Strata Office	Strata Industrial
ABSD (SC 2nd)	20%	0%	0%
ABSD (Foreigner)	60%	0%	0%
SSD on resale	12/8/4% (≤3yr hold)	0%	0%
GST on purchase	None	9% if seller GST-reg	9% if seller GST-reg
LTV (first purchase)	75%	~55%	~55–60%
Gross yield (2026)	2.5–4.0%	3.5–5.0%	4.5–6.5%
Foreigner eligible?	Yes (high ABSD)	Yes (no ABSD)	Yes (no ABSD)
CPF usable?	Yes (own use)	No	No

Worked Example: Ms Rajah Acquires a S$1.5M Strata Office in Tanjong Pagar

Ms Rajah, 45, is an Indian national on an Employment Pass. She already owns a residential condominium purchased with 60% ABSD (S$420,000 on a S$700,000 condo). She now wishes to diversify into commercial property.

Property: Strata office unit, 600 sq ft, Tanjong Pagar CBD, S$1.5 million. The seller is GST-registered.

Acquisition costs:

BSD: 1% × S$180,000 + 2% × S$180,000 + 3% × S$640,000 + 4% × S$500,000 = S$1,800 + S$3,600 + S$19,200 + S$20,000 = S$44,600 BSD
ABSD: S$0 (commercial — not applicable)
GST at 9%: 9% × S$1,500,000 = S$135,000 (recoverable if Ms Rajah registers for GST)
Legal / conveyancing: approximately S$5,000
Total upfront cash (excluding mortgage): S$44,600 + S$135,000 + S$5,000 + 45% deposit = S$184,600 + S$675,000 = ~S$859,600

Rental income: At 4.2% gross yield, monthly rent ≈ S$5,250. After property tax (10% of annual value of ~S$44,000 = S$4,400), maintenance, and agent fees, net yield is approximately 3.5%, or S$4,375/month.

Key insight: If Ms Rajah had purchased a residential condo of equivalent value as a second property, her ABSD alone would have been S$900,000 (60% of S$1.5M). By choosing commercial, she eliminates this entirely — and has no SSD exposure if she sells within three years.

Why Commercial Property Matters for Singapore Investors

The April 2023 ABSD increases — which pushed the foreigner residential rate to 60% and the SC second-property rate to 20% — dramatically changed the calculus for investors. Commercial property became the natural hedge: the same capital now buys a non-residential asset with no ABSD, no SSD, and typically a higher gross yield than residential. Between 2023 and 2026, URA data shows elevated transaction volumes for strata commercial and industrial units as investors sought ABSD-free alternatives.

Compared to regional peers, Singapore’s commercial property market benefits from rule-of-law certainty, transparent title, a deep pool of institutional tenants, and strong infrastructure connectivity. Hong Kong and Kuala Lumpur offer comparable tax advantages in some segments, but Singapore’s political stability and AAA-rated credit environment command a premium.

What Might Come Next for Singapore Commercial Property

(This section contains the editorial team’s forward-looking analysis; it does not constitute financial advice.)

The URA’s 2019 Master Plan designated the Greater Southern Waterfront, Jurong Lake District, and Woodlands Regional Centre as key nodes for commercial growth. These decentralisation drivers are expected to support demand for strata office space outside the CBD over the 2025–2030 planning horizon. Industrial REITs have flagged tightening vacancy rates in B1 space as the tech and biomedical sectors continue to grow, potentially supporting rental growth.

GST is not expected to rise above 9% before 2028 based on current MAS and MOF guidance. ABSD on commercial property has never been introduced in Singapore’s policy history, and any future imposition would require legislative change — there is no current signal of this from the government. The main risks for commercial investors are interest rate movements (commercial loan rates are closely tied to SORA and 3-month bank rates), potential oversupply in the CBD Grade A office segment following several large completions, and global economic uncertainty affecting tenant demand.

Frequently Asked Questions

Can foreigners buy commercial property in Singapore without restrictions?

Yes. The Residential Property Act (Cap 274) restricts foreigners from purchasing certain residential property categories (such as landed property and non-approved condominium units without special approval), but commercial property is entirely outside its scope. A foreigner may purchase a strata office, retail unit, shophouse, or industrial unit without any Ministry of Law approval, and pays 0% ABSD on the transaction. BSD and GST (if the seller is GST-registered) still apply.

Do I need to pay GST when buying a commercial property from a private individual who is not GST-registered?

No. GST only applies when the seller is a GST-registered entity. If you are purchasing a strata office from a private individual who has never registered for GST (which is common for smaller investors), no GST is payable. Always verify the seller’s GST registration status on the IRAS MyTax Portal before signing the Option to Purchase. If the seller is GST-registered, factor in the full 9% — this is non-negotiable and non-refundable unless you yourself register for GST and claim input tax.

Can I use my CPF savings to purchase a commercial property?

No. CPF Ordinary Account savings may only be used for the purchase of approved residential properties in Singapore — HDB flats, private residential apartments, and executive condominiums. Commercial and industrial properties are explicitly excluded from CPF usage. You must fund the entire purchase — including deposit, BSD, GST, legal fees, and the equity portion — using cash or cash equivalents.

Is rental income from commercial property taxable in Singapore?

Yes. Rental income from commercial property is taxable under the Income Tax Act as part of your assessable income for the relevant Year of Assessment. You may deduct allowable expenses including mortgage interest, property tax, maintenance and repairs, insurance premiums, and agent commission. If your gross rental receipts exceed S$1 million per year, you must register for GST and charge 9% GST to tenants (which you then remit to IRAS quarterly, after claiming input tax credits on your own GST-bearing expenses).

What is the difference between B1 and B2 industrial property?

Both are industrial land-use categories defined by the URA. B1 (clean/light industrial) permits uses such as food production, light manufacturing, research-and-development labs, and data centres — activities compatible with a residential environment. B2 (general industrial) permits heavier manufacturing, storage, and logistics activities that may generate noise, vibration, or emissions. B2 properties tend to offer higher yields but a narrower tenant pool, and are located further from residential zones. Investors should check the specific approved uses of any industrial unit before purchase, as unauthorised use can result in URA enforcement action.

Are there any restrictions on reselling commercial property in Singapore?

Generally, no — commercial property may be resold at any time with no Seller’s Stamp Duty. However, strata industrial units sold under JTC leases have a restriction: they may only be sold to end-users (not investors) during the first three years of ownership, a rule introduced in September 2017 to reduce speculation. After three years, the restriction lifts and the unit may be sold to any buyer. Conservation shophouses may be subject to URA conservation conditions that restrict certain types of renovation or façade changes, which can affect marketability.

How does the Seller’s Stamp Duty (SSD) work for commercial property?

It does not. Seller’s Stamp Duty was introduced specifically for residential property to discourage short-term speculation. It applies at 12% (sold within one year), 8% (sold in year two), and 4% (sold in year three) for residential properties acquired after 16 December 2021. Commercial and industrial property are entirely exempt from SSD — you may sell a strata office one month after purchase with zero SSD liability. BSD and any applicable GST on the subsequent buyer’s transaction are unrelated to your SSD position as a seller.

Disclaimer: This article is for general informational purposes only and does not constitute financial, tax, or legal advice. Commercial property investment involves significant capital risk, and individual circumstances vary widely. ABSD rates, BSD rates, GST rates, and LTV limits are determined by IRAS, MAS, and the relevant authorities and may change without notice. Always consult a licensed real estate salesperson, a qualified lawyer, and an accountant or tax adviser before making any property investment decision. Official references: IRAS, URA, MAS, JTC.

« Older Entries

Singapore Property Tax Guide 2026: IRAS Annual Value, Owner-Occupied Rates and How to Pay

⚡ Quick Answer: Singapore Property Tax 2026

What Is Property Tax in Singapore?

What Is Annual Value (AV) and How Does IRAS Calculate It?

How IRAS Arrives at the AV

Owner-Occupied (OO) vs Non-Owner-Occupied (NOO)

Singapore Property Tax Rates 2026

How to Check Your Property’s Annual Value

Investment Properties and the Non-Owner-Occupied Rate

How to Pay Your Singapore Property Tax

Worked Example: Property Tax for an HDB and a Private Condo

Scenario A — Owner-Occupied HDB 4-Room Flat (Tampines, AV S$12,000)

Scenario B — OCR Condo, 2BR, Owner-Occupied (AV S$30,000)

Scenario C — Same OCR Condo Rented Out (NOO Rate, AV S$30,000)

Scenario D — CCR Condo Investment Property (AV S$60,000, NOO)

How Singapore Property Tax Has Evolved — And Why It Matters

Property Tax Rebates and Reliefs

Objecting to Your Annual Value

What Might Come Next for Singapore Property Tax

Frequently Asked Questions

Related Articles on LovelyHomes

Singapore Stamp Duty Calculator 2026: BSD and ABSD Explained

Quick Answer — Singapore Stamp Duty Calculator 2026

What Is Buyer’s Stamp Duty (BSD)?

BSD Calculation — Step by Step

What Is Additional Buyer’s Stamp Duty (ABSD)?

ABSD by Buyer Profile — The Key Numbers

Stamp Duty Worked Example — Three Buyer Profiles

ABSD Remissions — When You Can Get It Back (or Avoid It)

1. SC/SPR Married Couple Remission on Second Property

2. Developer ABSD Remission on Residential Development Land

3. Remissions for Housing Developers — ABSD (Housing Developers) Regime

When Is Stamp Duty Payable?

Paying Stamp Duty Using CPF

Why Stamp Duty Matters for Your Investment Analysis

What Might Come Next — Stamp Duty Outlook

Summary — Key Stamp Duty Facts for 2026

Frequently Asked Questions

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Singapore Property Rental Income Tax Guide 2026: IRAS Deductions, Rates and How to File

Quick Answer: Singapore Rental Income Tax 2026

What Counts as Rental Income in Singapore?

Allowable Deductions: What You Can Claim Against Rental Income

1. Mortgage Interest

2. Property Tax

3. Fire Insurance Premium

4. Routine Maintenance and Repairs

5. Agent Commission and Advertising

6. Legal Fees for Tenancy

What You Cannot Deduct

How Singapore Income Tax Applies to Rental Income

Worked Example: Renting Out a Private Condo in 2026

How to File: IRAS myTax Portal Step by Step

Why Rental Income Tax Matters for Singapore Property Investors

What Might Come Next: Rental Income Tax Outlook

Rental Income Tax in Context: Singapore vs Regional Peers

Frequently Asked Questions: Rental Income Tax Singapore 2026

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Singapore Annual Property Tax Guide 2026: Annual Value, IRAS Rates and 2026 Rebate Explained

🏠 Quick Answer: Singapore Property Tax 2026

What Is Property Tax in Singapore?

Annual Value (AV): The Tax Base

The Two Property Tax Rate Schedules

Owner-Occupier (OO) Rates — Effective 1 January 2025

Non-Owner-Occupier (Non-OO) Residential Rates — Effective 1 January 2025

Non-Residential Property Rates

The 2026 Property Tax Rebate

Rate Progression History: How We Got Here

Worked Example: Property Tax Across Three Buyer Profiles

Case Study: The Chens — Three Properties, Three Tax Bills

How to Check, Appeal, and Pay Your Property Tax

What Property Tax Means for Investors and Landlords

What Might Come Next

Frequently Asked Questions

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Commercial Property Investment Singapore 2026: No ABSD, GST, Types & Yields Guide

Quick Answer — Commercial Property Investment Singapore 2026

What Is Commercial Property Investment in Singapore?