Understanding ABSD: Your Complete Stamp Duty Calculator Guide
The Additional Buyer's Stamp Duty (ABSD) is a tax levied on property purchases in Singapore that varies significantly based on your residency status and the number of properties you own. Whether you're a Singapore Citizen buying your second home, a Permanent Resident, or a foreigner entering the Singapore property market, understanding how to calculate ABSD is essential to budgeting for your purchase. At Homejourney, we prioritize transparency and accuracy in helping you understand every cost associated with buying property in Singapore—because informed buyers make confident decisions.
What Is ABSD and Why Does It Matter?
ABSD is an additional tax imposed on property buyers in Singapore, calculated on top of the standard Buyer's Stamp Duty (BSD). The key distinction is that ABSD applies specifically to second and subsequent property purchases, with rates varying dramatically based on your residential status.[1] This tax was introduced and refined to promote sustainable property ownership and prioritize owner-occupation over investment speculation.
The ABSD rates were last revised on 27 April 2023 to align with government policy objectives.[4] Understanding these rates is crucial because ABSD can represent a substantial portion of your total purchase costs—sometimes hundreds of thousands of dollars for high-value properties.
Current ABSD Rates for 2026
ABSD rates depend entirely on your residential status and which property number you're purchasing. Here's the breakdown as of 2026:
- Singapore Citizens: 0% on first property, 20% on second property, 30% on third and subsequent properties[1]
- Singapore Permanent Residents: 5% on first property, 30% on second property, 35% on third and subsequent properties[1]
- Foreigners: 60% on any residential property[1]
For non-citizens, the 60% rate applies uniformly regardless of how many properties you own. This represents a significant financial barrier for foreign investors, which is why many foreigner buyers focus on commercial properties or specific residential projects approved for foreign ownership. If you're a foreign buyer, understanding exemptions and alternative options is critical—explore our guide on Types of Properties Foreigners Can Buy in Singapore | Homejourney ">types of properties foreigners can buy in Singapore for more details.
How to Calculate ABSD: Step-by-Step Formula
ABSD is calculated using a straightforward formula, but understanding which price to use is essential. The ABSD calculation is based on whichever is higher: the purchase price or the property's market valuation.[1]
The Basic Formula:
ABSD = (Purchase Price or Market Value, whichever is higher) × Your Applicable ABSD Rate
Worked Example: Singapore Citizen Buying Second Property
Let's walk through a practical example. You're a Singapore Citizen purchasing your second residential property with a purchase price of $2,000,000 and a market valuation of $2,100,000. Since the market valuation is higher, ABSD is calculated on $2,100,000.
As a Singapore Citizen buying your second property, your ABSD rate is 20%.[1] Therefore: $2,100,000 × 20% = $420,000 in ABSD payable.
This example illustrates why market valuation matters—it can significantly increase your tax liability. At Homejourney, we recommend obtaining a professional property valuation early in your purchase process so you can accurately budget for stamp duties.
Worked Example: Foreign Buyer Purchasing Residential Property
A foreign national is purchasing a residential property with a purchase price of $3,500,000 and market valuation of $4,000,000. Using the higher valuation amount: $4,000,000 × 60% = $2,400,000 in ABSD payable.[1]
This substantial cost illustrates why foreign buyers often explore alternative strategies, such as purchasing commercial properties or properties in designated developments. For comprehensive guidance, review our article on financing options for foreign buyers in Singapore.
ABSD vs. BSD: Understanding the Difference
Many buyers confuse ABSD with BSD (Buyer's Stamp Duty). Both are taxes you pay as a buyer, but they serve different purposes and are calculated separately.
Buyer's Stamp Duty (BSD) applies to all property purchases regardless of how many properties you own. BSD rates are tiered based on property value, starting at 1% for the first $180,000 and increasing to 6% for amounts exceeding $3,000,000.[2] BSD is calculated on the purchase price or market value (whichever is higher).
ABSD applies only to second and subsequent property purchases and varies by residency status. You pay both BSD and ABSD on top of each other—they are cumulative taxes.
For a Singapore Citizen buying a second property worth $2,100,000, you would pay both BSD (approximately $105,000) and ABSD ($420,000), totaling roughly $525,000 in stamp duties. This is why using a reliable stamp duty calculator is essential for accurate budgeting.
Using the ABSD Stamp Duty Calculator
Multiple online calculators can help you estimate your ABSD liability. To use a stamp duty calculator effectively, you'll need:
- Property type (residential or non-residential)[3]
- Purchase price or market valuation (whichever is higher)[3]
- Your nationality and residency status[3]
- Number of properties you currently own[3]
- Details of joint buyers, if applicable[3]
The calculator will instantly display your estimated BSD, ABSD, and total stamp duty payable.[3] At Homejourney, we recommend using official calculators and cross-referencing results to ensure accuracy. Remember that these are estimates—your actual liability may vary based on the final market valuation determined by the Inland Revenue Authority of Singapore (IRAS).
ABSD Exemptions and Special Circumstances
While ABSD applies broadly, certain exemptions exist that can significantly reduce your tax burden:
- First Property Purchase: Singapore Citizens pay 0% ABSD on their first property[1]
- Replacement Property: If you sell your first property before purchasing your second, you may qualify for an exemption if the properties are not held simultaneously[1]
- Joint Ownership: When properties are jointly owned, ABSD rates may apply differently depending on how many properties each owner holds individually[1]
- Specific Developments: Certain new residential developments may have ABSD exemptions or concessions—check with the developer or your property agent
The replacement property exemption is particularly important. If you're upgrading from your first home, you can avoid ABSD on your second purchase if you exercise the Option to Purchase (OTP) for your new property after your buyer has exercised their OTP on your existing property.[1] This timing is critical—consult a property lawyer to ensure you structure your transaction correctly.
Common ABSD Mistakes to Avoid
Mistake 1: Forgetting About Market Valuation Many buyers focus only on their negotiated purchase price and forget that ABSD is calculated on the higher of purchase price or market valuation. A property purchased for $2,000,000 might be valued at $2,200,000, increasing your ABSD by $40,000 (on a 20% rate). Always obtain a valuation early.
Mistake 2: Not Planning for Joint Ownership If you're buying jointly with a spouse or partner, each person's property count matters separately. This can create unexpected ABSD implications. Discuss ownership structure with a lawyer before purchasing.
Mistake 3: Overlooking the Replacement Property Exemption Buyers upgrading from their first home sometimes miss the opportunity to claim exemption by exercising OTPs in the wrong order. Work with your lawyer to sequence transactions correctly.
Mistake 4: Underestimating Total Stamp Duty Costs Remember you pay both BSD and ABSD. For a $2,100,000 second property purchase as a Singapore Citizen, total stamp duties exceed $500,000. This must be factored into your financing and down payment planning.
ABSD Impact on Your Property Budget
ABSD significantly affects your total property investment cost and should influence your purchasing decisions. When budgeting for a property purchase, allocate funds for:
- Down payment (typically 5-20% of purchase price)
- BSD (tiered tax on all purchases)
- ABSD (if applicable based on your status and property count)
- Legal fees and conveyancing costs
- Home inspection and valuation fees
- Mortgage insurance (if applicable)
- Property insurance and maintenance reserves
For a $2,000,000 property purchase as a Singapore Citizen buying a second home, total costs could easily exceed $2,600,000 when accounting for down payment, stamp duties, and associated fees. Understanding these costs upfront helps you make realistic financial decisions. For detailed financing guidance, explore Bank Rates ">current bank rates and mortgage options available through Homejourney.
ABSD for Different Buyer Categories
Singapore Citizens Upgrading Properties
If you're a Singapore Citizen upgrading from your first to second property, the 20% ABSD rate applies. Many buyers in this category benefit from the replacement property exemption, allowing them to purchase their new home before selling their old one without triggering ABSD. This requires careful timing and professional guidance.
Singapore Permanent Residents
SPRs face higher ABSD rates than citizens: 5% on first property, 30% on second, and 35% on third and subsequent properties.[1] If you're an SPR considering property investment, these rates significantly impact your investment returns and should factor into your decision-making.
Foreign Buyers and EFTA Citizens
Foreign nationals, including citizens of EFTA countries like Iceland, face a flat 60% ABSD rate on any residential property purchase.[1] This substantial cost has led many foreign buyers to focus on commercial properties or approved residential developments. If you're a foreign buyer, particularly from Iceland or other EFTA nations, understanding your options is crucial. Review our comprehensive guide on Iceland Citizens Buying Property in Singapore: EFTA Guide | Homejourney ">Iceland citizens buying property in Singapore for EFTA-specific guidance and alternative strategies.
Frequently Asked Questions About ABSD
Q: Can I avoid ABSD by structuring my purchase differently?
A: While you cannot avoid ABSD entirely on second and subsequent purchases, you may qualify for exemptions in specific circumstances, particularly the replacement property exemption. Consult a property lawyer to explore legitimate strategies for your situation. At Homejourney, we emphasize working with qualified professionals to ensure compliance with all regulations.
Q: Is ABSD refundable if I sell the property?
A: No, ABSD is not refundable. However, if you sell within a certain holding period, you may be liable for Seller's Stamp Duty (SSD) instead, which has different rates and purposes.[1] ABSD and SSD are separate taxes serving different policy objectives.
Q: How does ABSD affect my mortgage qualification?
A: ABSD doesn't directly affect mortgage qualification, but it reduces the cash you have available for down payment and other costs. Banks assess your ability to service the mortgage based on your income and debt obligations. Factor ABSD into your total cash requirement before applying for a mortgage. Review available Bank Rates ">mortgage rates and loan options to understand your financing capacity.
Q: Can a foreign buyer claim ABSD exemptions?
A: Foreign buyers generally cannot claim most ABSD exemptions available to citizens and PRs. The 60% rate applies uniformly. However, exploring alternative property types or approved developments may offer different tax treatment. Consult a tax advisor familiar with foreign buyer regulations.
Q: When must I pay ABSD?
A: ABSD is payable when you complete your property purchase, typically at the point of execution of the deed of transfer. Your lawyer will handle ABSD payment to IRAS as part of the conveyancing process.
Next Steps: Planning Your Property Purchase
Understanding ABSD is the first step in smart property purchasing. To move forward confidently:
- Determine Your Status: Confirm your residency status and count existing properties to identify your applicable ABSD rate
- Use a Calculator: Estimate your ABSD liability using an online calculator with realistic property values
- Budget Comprehensively: Factor ABSD into your total purchase budget alongside BSD, legal fees, and other costs
- Consult Professionals: Engage a property lawyer and tax advisor to explore exemptions and optimal transaction structuring
- Explore Financing:
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