Renting out property in Singapore generates taxable income. While Singapore has no capital gains tax (a major advantage), landlords must declare rental income annually and pay property tax on their rental properties. Here's exactly how it works.
Rental Income Tax
Is rental income taxable in Singapore?
Yes. Rental income received from letting out property in Singapore is taxable as part of your total income, assessed under the Income Tax Act. This applies to:
- Singapore Citizens and PRs
- Foreigners who rent out Singapore properties (even if they don't live here)
What counts as taxable rental income?
All amounts received from tenants, including:
- Monthly rent
- Advance rent / rental deposits if forfeited or not returned
- Payments by tenant for landlord's expenses (e.g., tenant pays your mortgage — taxable)
Not included:
- Security deposits held in trust (not forfeited)
- Utility bills paid by the tenant directly to SP Group under their name
When to declare
Declare rental income in your annual income tax return:
- Filing deadline: April 18 each year (for income earned in the previous year)
- Method: File via myTax Portal at mytax.iras.gov.sg using Singpass
IRAS pre-populates some income data, but rental income must usually be self-declared.
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Allowable Deductions Against Rental Income
You can reduce your taxable rental income by deducting these expenses:
1. Mortgage Interest
The interest portion of your home loan repayments is deductible — but not the principal repayment. If your monthly instalment is $2,500 (principal $1,500 + interest $1,000), only $1,000 is deductible.
For partially rented properties (e.g., you rent out 2 rooms and live in 2 rooms of a 4-room HDB): Only the proportional interest relating to the rented area is deductible.
2. Property Tax Paid
The property tax you pay (see below) on the rental property is a deductible expense against rental income.
3. Fire Insurance / Home Insurance Premiums
If you have fire or contents insurance on the rental property, the premium is deductible.
4. Maintenance and Repair Costs
Expenses for maintenance and repairs to the rental property are deductible. This includes:
- Aircon servicing and repairs
- Plumbing repairs
- Painting (maintenance, not renovation)
- Replacing broken fittings on a like-for-like basis
- Pest control
Not deductible: Capital improvement costs (e.g., full renovation, adding a room, kitchen upgrade). These are capital expenditure, not maintenance.
5. Agent Commission and Advertising
Commission paid to a property agent for finding a tenant, and listing fees paid on property portals, are deductible.
6. Administrative Costs
Legal fees for drafting the Tenancy Agreement are deductible. Stamp duty on the lease (if paid by the landlord) is deductible.
7. Furniture and Fittings Depreciation
Annual depreciation on furniture and fittings provided to the tenant can be claimed. IRAS allows a standard rate of depreciation (typically over 3 years for furniture).
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Simplified Deduction Method
Instead of tracking all individual expenses, landlords can elect to use IRAS's deemed deduction of 15% of gross rental income as a proxy for all expenses (except mortgage interest, which can still be separately deducted). This is simpler for landlords with few actual expenses.
Example:
- Gross rental income: $36,000/year ($3,000/month)
- Deemed expenses: 15% × $36,000 = $5,400
- Mortgage interest: $8,000/year
- Assessable rental income: $36,000 − $5,400 − $8,000 = $22,600
This $22,600 is added to your other income (salary, etc.) and taxed at the applicable marginal rate.
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Property Tax
Property tax is separate from income tax and is assessed by IRAS based on the Annual Value (AV) of your property.
What is Annual Value?
IRAS estimates the AV as the hypothetical annual rent the property could earn if rented out, regardless of actual rent received. IRAS determines this based on market data.
Property Tax Rates (Non-Owner-Occupied / Rental Properties)
As of 2024, Singapore uses a progressive property tax rate for non-owner-occupied residential properties:
| Annual Value | Tax Rate |
|---|---|
| First $30,000 | 12% |
| $30,001 – $45,000 | 20% |
| $45,001 – $60,000 | 28% |
| $60,001 – $90,000 | 36% |
| Above $90,000 | 36% |
Example — 3BR condo with estimated AV of $52,000:
- First $30,000 × 12% = $3,600
- $30,001–$45,000 ($15,000) × 20% = $3,000
- $45,001–$52,000 ($7,000) × 28% = $1,960
- Total property tax: $8,560/year ($713/month)
This is a significant cost. When calculating net yield, property tax must be factored in.
When Is Property Tax Due?
IRAS sends annual property tax notices (typically in December/January) with payment due by January 31. You can pay via PayNow, GIRO (monthly instalment option), or internet banking.
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HDB-Specific Tax Note
HDB flat owners who rent out rooms (not the whole flat) while continuing to live there may qualify for owner-occupier property tax rates on the portion of the flat they occupy. The portion rented out is taxed at non-owner-occupied rates. IRAS will pro-rate based on the number of rooms rented.
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For Foreign Landlords
If you are a non-resident (not tax-resident in Singapore) who owns and rents out Singapore property:
- Rental income is still taxable in Singapore
- Withholding tax of 15% applies to rental income paid to non-residents (the tenant or agent must withhold and remit to IRAS)
- File Form M with IRAS annually
- You may also need to declare this income in your home country (check double taxation agreements — Singapore has comprehensive DTAs with over 90 countries)
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Annual Tax Compliance Checklist for Landlords
- [ ] Keep records of all rental receipts (bank statements work)
- [ ] Track all deductible expenses with receipts
- [ ] Declare rental income via myTax Portal by April 18
- [ ] Pay property tax by January 31
- [ ] If using GIRO for property tax, ensure sufficient funds in account
IRAS has excellent online resources and a dedicated helpline for property tax queries: 1800-356-8300.
Tip: keep your tenancy agreements, rental receipts and deductible-expense invoices in one folder through the year — it makes your annual income declaration far quicker. SGLinkUp keeps a record of your listings and enquiries you can refer back to.