Paper 2 · Property Taxes (BSD, ABSD, SSD) · 19 min read
Property Tax, GST & Tenancy Stamp Duty in Singapore
Practise this section (252 questions) → · 4.7 Taxes on property, in sets of about 30
Must-know for the exam
- Property tax is charged on the Annual Value (AV), IRAS's estimate of the gross annual rent the property could fetch, not on its price or the rent actually received.
- Owner-occupied homes pay 0% to 32% of AV (from 1 Jan 2025); let or vacant homes 12% to 36% (from 1 Jan 2024); commercial and industrial a flat 10% (IRAS).
- Owner-occupier rates need an individual or married couple who own and live in the home, on one home per couple; letting the whole unit withdraws them from the date of letting.
- Owner-occupier rates continue during A&A works; an owner rebuilding his own house may keep them for up to 2 years by remission, if he lives there a year after TOP.
- Object to the AV or its effective date within 30 days of the Valuation Notice, then appeal to the Valuation Review Board within 30 days; tax stays payable meanwhile.
- Net rent is taxed as income under section 10(1)(f) of the Income Tax Act; only the housing loan interest is deductible, never the principal.
- From YA 2022 the costs of securing a tenant are deductible for the first and subsequent tenants alike, but not on a lease over 3 years; renovation and new furnishings never are.
- Since YA 2016 an individual letting residential property may claim deemed expenses of 15% of gross rent instead of actuals, with mortgage interest still claimed in full on top.
- GST at 9% (since 1 Jan 2024) applies to non-residential sales and leases by GST-registered suppliers; residential ones are exempt. Trading gains are taxed as income on the badges of trade.
- Lease stamp duty, the tenant's unless agreed otherwise, is 0.4% of total rent up to 4 years, or of 4 × average annual rent beyond; AAR up to $1,000 is exempt.
On this page · 12 sections
Beyond the one-off stamp duties on a purchase, the exam covers the recurring tax on owning property and the duty on leasing it.
Property tax — based on Annual Value
Property tax on the same Annual Value: lived in vs let out
Residential property tax worked band by band on the Annual Value. Owner-occupier rates from 1 January 2025: first 12,000 dollars at 0%, next 28,000 at 4%, next 10,000 at 6%, next 25,000 at 10%, next 10,000 at 14%, next 15,000 at 20%, next 40,000 at 26%, and above 140,000 at 32%. Non-owner-occupier rates from 1 January 2024: first 30,000 at 12%, next 15,000 at 20%, next 15,000 at 28%, and above 60,000 at 36%. On an Annual Value of 36,000 dollars the tax is 960 dollars if owner-occupied and 4,800 dollars if not. On 48,000 dollars it is 1,600 dollars against 7,440 dollars.
Annual Value $36,000charged on the Annual Value
Owner-occupied
One home only, from 1 Jan 2025
- First $12,000 × 0%$0
- Next $28,000 (to $40,000) × 4%$960
Only $24,000 of this band is used
Total$960
Not owner-occupied
Let out or vacant, from 1 Jan 2024
- First $30,000 × 12%$3,600
- Next $15,000 (to $45,000) × 20%$1,200
Only $6,000 of this band is used
Total$4,800
Annual Value $48,000charged on the Annual Value
Owner-occupied
One home only, from 1 Jan 2025
- First $12,000 × 0%$0
- Next $28,000 (to $40,000) × 4%$1,120
- Next $10,000 (to $50,000) × 6%$480
Only $8,000 of this band is used
Total$1,600
Not owner-occupied
Let out or vacant, from 1 Jan 2024
- First $30,000 × 12%$3,600
- Next $15,000 (to $45,000) × 20%$3,000
- Next $15,000 (to $60,000) × 28%$840
Only $3,000 of this band is used
Total$7,440
Source: IRAS, Property Tax Rates and Sample Calculations: owner-occupier residential rates from 1 Jan 2025, non-owner-occupier residential rates from 1 Jan 2024 (page updated 11 Aug 2026, checked 21 Oct 2026).
Property tax is charged on the Annual Value (AV) — IRAS's estimate of the property's gross annual rent if let out. The rate depends on how the property is used:
| Property use | Property-tax rate |
|---|---|
| Residential, owner-occupied | Lower progressive rates — 0% → 32% of AV |
| Residential, not owner-occupied (rented/vacant) | Higher progressive rates — 12% → 36% of AV |
| Commercial / industrial | Flat 10% of AV |
| Portion of Annual Value | Rate |
|---|---|
| First $12,000 | 0% |
| Next $28,000 ($12k–$40k) | 4% |
| Next $10,000 ($40k–$50k) | 6% |
| Next $25,000 ($50k–$75k) | 10% |
| Next $10,000 ($75k–$85k) | 14% |
| Next $15,000 ($85k–$100k) | 20% |
| Next $40,000 ($100k–$140k) | 26% |
| Above $140,000 | 32% |
| Portion of Annual Value | Rate |
|---|---|
| First $30,000 | 12% |
| Next $15,000 ($30k–$45k) | 20% |
| Next $15,000 ($45k–$60k) | 28% |
| Above $60,000 | 36% |
Income tax on rental income
Property tax and income tax are two different taxes that can hit the same flat in the same year. Property tax is a tax on ownership, charged on the AV whether the place is lived in, rented or empty. Income tax is a tax on the rent you earn from it. The syllabus asks you to interpret what expenses are or are not deductible from rental income — so the question is never just "is rent taxable?" (it is) but what comes off it first.
Rent is passive income taxable under section 10(1)(f) of the Income Tax Act, and it is the net rent — gross rent minus allowable expenses — that is added to the owner's other income and taxed at their personal rates. Three points about the gross figure catch candidates out:
- Gross rent is more than the rent. It includes rent for the premises, rent for the furniture and fittings, and any maintenance or service charges the tenant pays under the tenancy agreement. A forfeited deposit is taxable too (though the cost of repairing the damage that caused the forfeiture is deductible).
- *Timing runs on when the rent is due and payable, not when it arrives. Rent for Oct–Dec 2025 that the tenant only pays in Jan 2026 is 2025 income, declared for YA 2026*.
- Who is taxed follows the title, not the bank account. A sole owner is taxed on 100% even if a third party collects the rent; joint owners are taxed on their legal share — it does not matter who receives the money or who paid for the property. A rental loss is apportioned the same way, and cannot be set off against other income such as salary.
| Type of expense | Allowable | NOT allowable |
|---|---|---|
| Housing loan | The interest on the loan taken to buy the tenanted property | Repayment of principal — the capital half of each instalment; bank late-default charges |
| Property tax | Property tax for the rental period | Penalties for late/non-payment; a balance brought forward from an earlier year |
| Fire insurance | The premiums paid | The capital sum assured |
| Repairs | Repairs during the rental period that restore the property to its original state | Initial repairs; any repair that amounts to an improvement, addition or alteration |
| Maintenance | Painting, pest control, monthly MCST maintenance charges | Renovation, additions and alterations (e.g. window grilles, extending the car porch) |
| Securing a tenant | Agent's commission, advertising, legal fees and stamp duty to obtain, grant, renew or extend a lease, for the first and subsequent tenants alike (from YA 2022) | The same costs where the lease, renewal or extension runs more than 3 years (options to renew ignored); a sale-and-leaseback; a lease taken over in a business restructuring |
| Furniture & fittings | Replacing furnishings to their original state; hiring furniture | The initial purchase; depreciation; new or improved furnishings |
| Utilities / internet | Paid on the tenant's behalf and not reimbursed | Paid on the tenant's behalf and later reimbursed by them |
Since YA 2022 a landlord may also deduct repair, insurance, maintenance and property tax for a vacancy period between leases — provided reasonable efforts were made to find a new tenant. Expenses on a property that generates no rent at all (your own home, a unit never offered for letting) remain non-deductible.
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Quick self-check · 5 questions
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Say your answer out loud, then tap to check it.
A condo has an Annual Value of $36,000. What property tax is due if owner-occupied, and if rented out?Show answer
$960 owner-occupied (0% on $12,000, 4% on $24,000). $4,800 rented or vacant (12% on $30,000, 20% on $6,000). A commercial unit with the same AV pays a flat 10%, $3,600.
Which part of a mortgage instalment is deductible from rental income?Show answer
Only the interest, never the principal, which is capital. Interest is claimed in full on top of the 15% deemed expenses option.
Gross rent $48,000, actual expenses $7,000, loan interest $9,500. What is net rent on the deemed 15% basis?Show answer
$31,300. Deemed expenses are 15% × $48,000 = $7,200, so $48,000 − $9,500 − $7,200. On actuals it is $31,500.
Is GST charged on a condo sale, and on the agency's commission for selling it?Show answer
No GST on the residential sale, which is exempt. GST is charged on the commission at 9% (from 1 Jan 2024) if the agency is GST-registered, because brokering is a separate standard-rated service.
Does an owner keep owner-occupier rates if the home is left vacant, or if he lets out a room?Show answer
Vacant: no. Letting some rooms while living there: yes. Letting the whole unit ends the rates from the date of letting.
Common questions
- Is GST charged on residential property in Singapore?
- No. GST applies to commercial property (when the seller is GST-registered), but the sale and lease of residential property is exempt from GST.
- Who pays tenancy stamp duty?
- Tenancy stamp duty on a lease is usually paid by the tenant and is computed based on the rent payable over the term of the tenancy.
- Which rental expenses can a landlord deduct from rental income?
- Only expenses incurred to produce the rental income — the revenue side, not the capital side. Allowable: mortgage interest (never the principal), property tax for the rental period, fire-insurance premiums, repairs that restore the property to its original state, maintenance and MCST charges, replacing furnishings, and the commission, advertising, legal fees and stamp duty of securing a tenant (from YA 2022 this covers the first tenant as well as later ones). Not allowable: loan principal, initial repairs, renovation, additions and alterations, new or improved furnishings, depreciation, any cost reimbursed by the tenant, and tenant-securing costs on a lease of more than 3 years (IRAS, read 1 Oct 2026).
- What is the 15% deemed rental expenses option?
- Since YA 2016 an individual letting a residential property in Singapore may claim deemed rental expenses of 15% of the gross rent instead of adding up the actual expenses — and may still claim mortgage interest on top of the 15%. It must be applied consistently across all their tenanted residential properties in the same Year of Assessment, is not available for non-residential property, and cannot be used where no deductible expense was incurred apart from interest, or where the rent was derived through a partnership or from a property held under a trust. Co-owners of the same property may each choose differently.
- What is the difference between property tax and income tax on a rented-out property?
- Property tax is a tax on ownership, charged on the property's Annual Value whether it is owner-occupied, rented out or vacant. Income tax is a tax on the rent earned, charged on the net rental income after allowable expenses. Both can be payable on the same property in the same year, and the property tax paid for the rental period is itself one of the expenses deductible against the rental income.
Related lessons
Exam-style questions on this topic
- RES exam question on Taxes & Duties: Mdm Siti owns two condominium units
- RES exam question on Taxes & Duties: Mr Ang, an individual, lets his condominium unit for $60,000 of rent in 2026
- RES exam question on Taxes & Duties: Five buyers, none of them a Singapore Citizen, each buy their first residential property…
- RES exam question on Taxes & Duties: Mr Chua has bought and sold five condominiums in three years, holding each for under…
- RES exam question on Taxes & Duties: Buyer's Stamp Duty does she pay on the office
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