What Is Stamp Duty in Singapore?
Stamp duty is a tax imposed by the Inland Revenue Authority of Singapore (IRAS) on property transactions. For buyers, two key duties apply: Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD). Both are payable within 14 days of signing the sale and purchase agreement (or 30 days if the document is signed overseas).
BSD is a standard tax for all property purchases, calculated on a progressive scale based on the property’s purchase price or market value (whichever is higher). ABSD is an extra levy introduced to cool the property market and promote owner-occupancy. It applies only to certain buyer profiles and property counts.
Understanding both duties is essential for budgeting your property purchase in Singapore—especially as ABSD rates have risen significantly in recent years.
Buyer’s Stamp Duty (BSD) Rates 2026
BSD rates in 2026 remain unchanged from previous years and follow a tiered structure. The duty is calculated on the higher of the purchase price or the property’s market value.
| Property Value Tier | BSD Rate |
|---|---|
| First S$180,000 | 1% |
| Next S$180,000 (S$180,001 – S$360,000) | 2% |
| Next S$640,000 (S$360,001 – S$1,000,000) | 3% |
| Next S$500,000 (S$1,000,001 – S$1,500,000) | 4% |
| Above S$1,500,000 | 5% |
Example: For a S$1.2 million condo:
– First S$180k × 1% = S$1,800
– Next S$180k × 2% = S$3,600
– Next S$640k × 3% = S$19,200
– Next S$200k × 4% = S$8,000
Total BSD = S$32,600
Additional Buyer’s Stamp Duty (ABSD) Rates 2026
ABSD is an extra tax applied on top of BSD, based on your citizenship status and how many residential properties you (and your spouse, if married) already own in Singapore. As of April 2026, the rates reflect the latest adjustments made in February 2023.
These rates are designed to prioritise housing access for Singaporeans while moderating demand from investors and foreigners.
Step-by-Step Calculation Guide
Follow these steps to calculate your total stamp duty (BSD + ABSD):
- Determine your buyer profile: Are you a Singapore Citizen (SC), Permanent Resident (PR), foreigner, or buying under an entity (e.g., company)?
- Count your existing residential properties: Include all properties owned by you and your spouse (if married) in Singapore.
- Identify your ABSD rate: Use the table below based on your profile and property count.
- Calculate BSD: Apply the tiered BSD rates to the higher of the purchase price or market value.
- Calculate ABSD: Multiply the same property value by your ABSD rate.
- Add BSD + ABSD: This is your total stamp duty payable.
Note: ABSD is applied to the full property value—not just the portion above a threshold.
ABSD by Buyer Profile Table
| Buyer Profile | Property Count in Singapore | ABSD Rate (2026) |
|---|---|---|
| Singapore Citizen | 1st property | 0% |
| Singapore Citizen | 2nd property | 20% |
| Singapore Citizen | 3rd property and beyond | 30% |
| Permanent Resident (PR) | 1st property | 5% |
| Permanent Resident (PR) | 2nd property and beyond | 25% |
| Foreigner | Any property | 60% |
| Entity (e.g., company, trust) | Any property | 65% |
Important: If you’re married, IRAS treats you and your spouse as a single entity. So if your spouse owns a property, your purchase—even as a first-timer—may be subject to higher ABSD.
How to Reduce Your ABSD
While ABSD is mandatory for most buyers, there are legal strategies to minimise or avoid it:
- Buy as a first-time Singapore Citizen: If you’re an SC with no property, you pay 0% ABSD on your first home.
- Time your purchase: Sell your existing property before buying a new one to qualify as a first-timer (subject to IRAS’s “sequential purchase” rules).
- Use the decoupling strategy: If you’re married and jointly own a property, one spouse can transfer their share to the other, allowing the “non-owner” spouse to buy a second property at lower ABSD rates.
- Avoid buying under an entity: Entities face the highest ABSD (65%). Only consider this for commercial or investment reasons with professional advice.
Always consult a property lawyer or tax advisor before implementing any ABSD mitigation strategy.
Decoupling Strategy
Decoupling is a popular method among married couples to reduce ABSD when upgrading. Here’s how it works:
- A married couple jointly owns Property A.
- One spouse (e.g., the wife) transfers her 50% share to the husband via a gift or sale.
- After the transfer, only the husband owns Property A.
- The wife is now considered a first-time buyer and can purchase Property B with 0% ABSD (if she’s an SC).
Caveats:
- Decoupling triggers Seller’s Stamp Duty (SSD) if Property A was bought within the last 3 years.
- Legal and valuation fees apply (typically S$3,000–S$6,000).
- IRAS scrutinises decoupling—ensure the transaction is genuine and properly documented.
- Only one decoupling per couple is generally accepted for ABSD relief.
While effective, decoupling isn’t suitable for everyone. Run the numbers with a qualified advisor to confirm net savings.
FAQ
What is the difference between BSD and ABSD?
BSD (Buyer’s Stamp Duty) is a standard tax paid by all property buyers in Singapore, calculated on a tiered scale based on property value. ABSD (Additional Buyer’s Stamp Duty) is an extra tax applied only to certain buyer profiles (e.g., second-home buyers, foreigners) to moderate property demand.
Do I pay ABSD if I’m a Singapore Citizen buying my first home?
No. Singapore Citizens purchasing their first residential property pay 0% ABSD as of 2026. You’ll still need to pay BSD based on the property value.
Is ABSD refundable if I sell my previous property?
Yes, under the ABSD refund scheme. If you’re a Singapore Citizen or PR who paid ABSD on a second property, you may apply for a refund if you sell your first property within 6 months of purchasing the second one. Strict conditions apply—check IRAS guidelines.
How is stamp duty calculated for a S$2 million property?
For a S$2 million property:
BSD: (180k×1%) + (180k×2%) + (640k×3%) + (500k×4%) + (500k×5%) = S$1,800 + S$3,600 + S$19,200 + S$20,000 + S$25,000 = S$69,600.
ABSD: Depends on buyer profile (e.g., 20% for SC second property = S$400,000).
Total stamp duty = BSD + ABSD.
When must I pay stamp duty?
Stamp duty must be paid within 14 days from the date of the signed sale and purchase agreement. If the document was signed overseas, you have 30 days from the date it’s received in Singapore. Late payments incur penalties.
Need Help Calculating Your Stamp Duty?
ABSD rates are correct as of April 2026. Verify with IRAS before transacting.
Get a personalised stamp duty estimate and explore legal ABSD-saving strategies with Alvin Tan, CEA Licensed Realtor (R072324C). With over 10 years in Singapore property, Alvin helps buyers navigate BSD, ABSD, and decoupling with clarity.
Chat now on WhatsApp: wa.me/6584888648
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