Rental income tax in Singapore is charged when you receive a monthly payment for the properties you rent out. Although renting out second properties is not a job or form of employment, it is still considered a source of income. This means that you will have to pay rental income tax on the rental income.
But before you decide to rent out your home, you need to know how to calculate rental tax, how to pay it, and what is tax deductible.
Rental Income Tax Singapore: Overview
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You have to pay rental income tax if you |
Notes |
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Get your rental deposit |
When you file your tax return, you may be able to claim an exclusion as “compensation” if the tenant causes damage to your property. |
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Sublet your house |
You must allocate the costs based on the number of rooms rented |
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Property insurance |
– |
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You will not receive your tenant’s rent due from October to December 2022 until January 2023 |
You must declare the rent for October to December 2022 for the assessment year 2023 |
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You own the property but do not receive rent |
– |
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Are co-owners of the property |
– |
Rental Income Tax Singapore: Scenario
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Rental price |
3,000 US dollars |
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Tools |
$200 |
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John’s gross rental income |
$3,200 |
John rents his 4-room HDB flat to a tenant for $3,000 per month. On average, the tenant incurs $200 in utilities, which he pays in addition to his monthly rent. This gives John’s gross rental income of $3,200.
However, the Inland Revenue Authority of Singapore (IRAS) only wants to tax John based on the amount he “earns” from renting out his 4-room HDB flat.
Because John is still paying off the mortgage on his rental property, he can deduct his monthly repayment from his taxable rental income. If he makes other payments for the maintenance of his rental property (such as fire insurance), he can also deduct these from his taxable rental income.
In short: net taxable rental income = gross rental income – allowable expenses (i.e. mortgage interest + assumed expenses).
What are deemed expenses for rental income tax in Singapore?
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Fictional edition |
Description |
Notes |
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Home loans |
Yes, for the interest on the loan/mortgage taken out to purchase the rental property (divided accordingly if it is also partly used personally) |
Does not include repayment of the principal loan or mortgage amount in monthly installments; does not include penalties for late repayment of loans |
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Wealth tax |
Yes, only for the property tax incurred during the rental period |
Not included are penalties for late payment/non-payment of property tax* |
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Fire insurance |
Yes, for premiums paid |
Does not include capital insurance sum for real estate* |
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Repairs |
Yes, for the cost of repairs made during the rental period as well as repairs made during the rental period to return the property to its original condition. |
Not included are repairs before/after the rental period; not included are improvement works* |
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maintenance |
Yes, for the costs of maintaining the property (e.g. painting, pest control, monthly maintenance fees to the property management company) |
Does not include improvements or modifications that are not repairs or maintenance* |
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Costs for tenant security |
Yes, for the broker’s commission, advertising, legal fees and land registry fees for first and subsequent tenants. |
A person cannot claim a deduction for a lease or renewal or extension of a lease for a term of more than three years (without the option to renew or extend the lease); for the acquisition, grant, novation, transfer or assignment of a lease as a result of the purchase, sale, transfer or reorganisation of a business; or for a lease under a contract where the property is sold and leased back |
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Costs for supervision or administration fees |
Yes, for the costs incurred by engaging a third party to manage your property (e.g. collecting rent/maintenance/processing tenant enquiries) |
If you hire your own relatives or a company you own, you must justify that the amount paid corresponds to the market price and is appropriate for the services provided.* |
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Furniture and furnishings |
Yes, for the costs of restoring the facility to its original condition and for renting furniture. |
Does not include depreciation costs for fixtures or improvements/additions (not for repair purposes) |
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Internet fees/costs |
Yes, if you paid on behalf of your tenant (the tenant does not have to pay you back) |
– |
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extra costs |
Yes, if you paid on behalf of your tenant (the tenant does not have to pay you back) |
– |
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Expenses for properties that do not generate rental income |
NO |
These expenditures are capital and private in nature |
*This will cover expenses paid during the vacancy periods between leases beginning in the 2022 tax year, provided that reasonable efforts have been made to find a new tenant during the vacancy periods between leases.
Typical scenarios for tax deduction on rental income
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scenario |
Can you deduct rental income from your taxes in any way? |
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You rent out your property and pay rent elsewhere |
NO |
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After your tenant moved out, you had to struggle for several months to find a new tenant |
Yes, the assumed costs of finding a new tenant |
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You renovated your property before renting it to your first tenant |
NO |
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You own two properties and rent both |
Yes, the assumed costs of the respective properties |
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You rent a room in your house under |
Yes, depending on the room being sublet |
Rental income tax calculator vs. 15% simplification of claims
As mentioned earlier, the formula for calculating rental income tax in Singapore is to deduct your deemed expenses from your gross rental income.
However, if you’re like us, you might be a little overwhelmed by the number of ways to deduct rental income tax. To avoid having to calculate the supposed expenses every time you have to fill out your rental income tax form, landlords can apply to IRAS for a deduction simplification, which allows you to claim a flat deduction of 15% of gross rental income rather than the exact rental income tax amount.
This is good news for landlords who are too busy to calculate the exact amount of their rental tax, as well as for those whose notional expenses (e.g. mortgage, maintenance fees, etc.) are less than 15% of their gross rental income (i.e. the total amount they earn from renting out their property) – more accurately, they “earn” the difference between 15% of their gross rental income and the notional expenses.
Do you want to rent your property in 2023?
We’ve been talking about Singapore’s “record high rents” for many moons now. The increased supply of BTO apartments and the number of private properties receiving their Temporary Occupation Permit (TOP) by the end of 2023 will likely help to dampen rental price growth, but as of today (July 5, 2023), renting in Singapore is still a landlord’s market.
If you’re considering how much rent you should charge depending on your HDB flat type and property, check out our quarterly HDB rental price overviews. For other property types, you can filter PropertyGuru’s listings to get a rough estimate of market prices.
For more real estate news, content and resources, visit Check out PropertyGuru’s how-to section.
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