Understanding ABSD: Your Complete Calculator and Eligibility Guide
The Additional Buyer's Stamp Duty (ABSD) is a tax imposed on property purchases in Singapore based on your residency status and the number of properties you already own.[1] Unlike the standard Buyer's Stamp Duty (BSD) that applies to all property purchases, ABSD is an additional layer of taxation designed to moderate property demand and promote housing sustainability.[3] At Homejourney, we prioritize helping you understand every cost involved in your property purchase journey, ensuring you can make confident, informed decisions with complete transparency.
If you're purchasing a second property, upgrading your home, or buying as a foreigner, ABSD will significantly impact your total purchase costs. As of 27 April 2023, ABSD rates were substantially revised, with some rates doubling.[3] Understanding these rates and calculating your exact liability is essential before committing to any property purchase.
Current ABSD Rates: What You Need to Know (2026)
ABSD rates vary dramatically depending on your residency status and property ownership history. The rates that took effect on 27 April 2023 remain current and represent a significant tightening of Singapore's property market regulations.[3]
For Singapore Citizens:
- First property: 0% (no ABSD)
- Second property: 17%
- Third and subsequent properties: 25%
For Singapore Permanent Residents (PRs):
- First property: 5%
- Second property: 25%
- Third and subsequent properties: 30%
For Foreigners:
- Any property purchase: 60%
The foreign buyer rate of 60% represents a significant increase from the previous 30%, making property investment in Singapore considerably more expensive for non-residents.[3] This policy change reflects Singapore's commitment to prioritizing housing for owner-occupiers and citizens.
How to Calculate Your ABSD Liability
ABSD is calculated as a percentage of the property's purchase price or market value, whichever is higher.[1] The calculation is straightforward but requires you to know your residency status and current property ownership count.
Step-by-step calculation:
- Determine your residency status (Singapore Citizen, PR, or Foreigner)
- Count the number of properties you currently own
- Identify the applicable ABSD rate from the table above
- Multiply the property's purchase price (or market value, whichever is higher) by the ABSD rate
- Round down to the nearest dollar
Example calculation: If you're a Singapore citizen purchasing your second property for $800,000, your ABSD would be $800,000 × 17% = $136,000. This is in addition to the BSD you'll also pay on the same property.
Homejourney recommends using an official ABSD calculator to verify your calculations, as errors could lead to underpayment penalties. The Inland Revenue Authority of Singapore (IRAS) provides an official calculator on their myTax Portal.[4]
ABSD Exemptions and FTA Eligibility
Singapore offers several important exemptions from ABSD under specific circumstances. The most significant is the First-Time Buyer (FTA) exemption, though this is often misunderstood by property buyers.
Who qualifies for FTA ABSD exemption:
- Singapore citizens purchasing their first residential property
- Singapore PRs purchasing their first residential property (though they still pay 5% ABSD)
- Married couples where at least one spouse is a Singapore citizen, purchasing their first joint residential property
The FTA exemption applies only to residential properties, not commercial or mixed-use properties. Additionally, if you've previously owned property in Singapore or elsewhere, you may not qualify as a first-time buyer, depending on the specific circumstances and timing of your previous ownership.[1]
FTA ABSD Remission: Conditions and Requirements
Beyond basic exemptions, Singapore offers ABSD remission schemes for specific categories of buyers. These remission programs allow eligible purchasers to recover ABSD paid, subject to strict conditions.
Key remission conditions typically include:
- The property must be your primary residence
- You must hold the property for a minimum period (usually 6 years)
- You must not have disposed of other residential properties within a specified timeframe
- The property must be a residential unit, not commercial or mixed-use
For detailed information about FTA remission eligibility and the application process, Homejourney recommends reviewing the official IRAS guidelines or consulting with a qualified tax advisor. The remission scheme is complex, and eligibility depends on your specific circumstances. For a comprehensive guide to remission requirements, see our detailed article on FTA ABSD Remission Singapore: Eligibility Rules & Guide FTA ABSD Remission Singapore: Eligibility Rules & Guide | Homejourney .
ABSD for Different Buyer Categories
Upgraders and Downsizers: If you're selling your current property to purchase a new one, you'll typically pay ABSD on the new purchase based on your total property ownership at the time of purchase. The fact that you're selling another property doesn't automatically exempt you from ABSD.
Joint Purchasers: When multiple buyers purchase together, ABSD is calculated on the total purchase price. However, the rates applied depend on the residency status of the primary buyer or, in some cases, the buyer with the highest ownership count.
Foreign Buyers: The 60% ABSD rate applies to all property purchases by non-residents, regardless of whether it's their first property or subsequent purchase. This makes property investment significantly more expensive for foreigners. For a detailed overview, see our guide on Types of Properties Foreigners Can Buy in Singapore Types of Properties Foreigners Can Buy in Singapore | Homejourney .
ABSD vs. BSD: Understanding the Difference
Many property buyers confuse ABSD with BSD, but they are separate taxes calculated differently.
Buyer's Stamp Duty (BSD): Applies to all property purchases, regardless of residency or ownership history. Rates are progressive and range from 1% to 6% depending on property value and type.[1]
Additional Buyer's Stamp Duty (ABSD): Applies only to specific categories of buyers (second+ properties for citizens, first+ properties for PRs, all properties for foreigners). Rates are flat percentages based on residency status.[3]
Both taxes are calculated on the purchase price or market value (whichever is higher) and are payable to the Inland Revenue Authority of Singapore (IRAS). You pay both simultaneously when completing your property purchase.
Planning Your Property Purchase: Total Cost Considerations
ABSD represents a substantial cost that must be factored into your overall property purchase budget. For a second property purchase by a Singapore citizen at $1 million, ABSD alone amounts to $170,000 before considering BSD and other costs.
When evaluating property affordability, consider:
- Purchase price or market value (whichever is higher)
- BSD (1-6% depending on property value)
- ABSD (0-60% depending on residency and ownership)
- Legal fees and conveyancing costs (typically $1,500-$3,000)
- Property evaluation fees
- Mortgage processing fees (if financing)
To estimate your total stamp duty liability accurately, Homejourney recommends using an official calculator before making an offer. Understanding these costs upfront helps you determine whether a property fits your budget and investment goals.
When to Seek Professional Advice
While this guide provides comprehensive information, ABSD regulations involve complex rules and edge cases. You should consult with a qualified tax advisor or lawyer if:
- You're uncertain about your residency classification
- You've owned property previously and aren't sure if you qualify for FTA exemption
- You're purchasing as part of a trust, company, or other entity
- You're considering ABSD remission and want to understand your eligibility
- Your property has mixed residential and commercial components
At Homejourney, we prioritize your safety and confidence in property transactions. While we provide accurate information, individual circumstances vary, and professional advice ensures you understand your specific tax obligations.
Frequently Asked Questions About ABSD
Q: Can I avoid ABSD by having my spouse purchase the property instead?
A: No. ABSD is determined by the residency status and property ownership of the actual purchaser(s). Attempting to circumvent ABSD through alternative ownership structures may violate tax regulations and result in penalties.
Q: Does ABSD apply to HDB flats?
A: Yes, ABSD applies to HDB resale purchases for eligible buyers. However, first-time buyers of HDB flats are exempt from ABSD. The exemption applies only to residential properties, including HDB flats, condominiums, and landed houses.
Q: If I'm a PR purchasing my first property, do I pay ABSD?
A: Yes, PRs pay 5% ABSD on their first property purchase. This differs from Singapore citizens, who pay 0% ABSD on their first property. The 5% rate applies regardless of property type or value.
Q: Can I claim ABSD as a tax deduction?
A: No, ABSD is not tax-deductible. It's a stamp duty paid to IRAS and represents a cost of acquiring the property, not an ongoing expense.
Q: What happens if I pay ABSD but later discover I was eligible for exemption?
A: You can apply for a remission or refund from IRAS if you meet the eligibility criteria. Applications must be submitted within specific timeframes, typically within 5 years of payment. Consult with IRAS or a tax professional about your specific situation.
Next Steps: Planning Your Property Purchase with Homejourney
Understanding ABSD is a critical step in your property purchase journey. At Homejourney, we're committed to ensuring you have all the information needed to make confident decisions with complete transparency.
To move forward with your property purchase:
- Verify your residency status and count your current property ownership
- Use an official ABSD calculator to estimate your exact liability
- Factor ABSD into your total purchase budget alongside BSD and other costs
- Consult with a tax advisor if you have complex circumstances or remission eligibility questions
- Explore financing options that account for your total stamp duty costs
For comprehensive guidance on the complete property buying process, including financing options and property selection, explore our related resources. If you're a foreign buyer navigating Singapore's property market, our guide on Step-by-Step Property Buying Process for Foreigners Step-by-Step Property Buying Process for Foreigners | Homejourney provides detailed insights into every stage of the purchase journey.
To explore available properties and understand current market values that will affect your ABSD calculations, use Homejourney's Property Search property search tool. When you're ready to evaluate financing options, our Bank Rates page provides current mortgage rates from Singapore's leading banks, helping you understand the complete cost of your property investment.
Homejourney is committed to creating a safe, trusted environment where you can make property decisions with confidence. If you have questions about ABSD, stamp duty calculations, or any aspect of property purchasing in Singapore, our team is here to help verify information and ensure you have the clarity needed for your investment.
