Understanding ABSD: Your Complete 2026 Calculator Guide
The Additional Buyer's Stamp Duty (ABSD) is a critical cost that Singapore property buyers must understand before making an offer. When combined with Buyer's Stamp Duty (BSD), ABSD can represent a substantial portion of your upfront purchase costs—especially if you're a foreigner, upgrading to a second property, or investing as a company. This guide walks you through calculating ABSD accurately using current 2026 rates, ensuring you can budget confidently for your property purchase.
At Homejourney, we prioritize your financial safety by providing transparent, verified information about all costs involved in buying property in Singapore. Understanding ABSD before you commit to a purchase is essential for making informed decisions and avoiding surprises at the stamping stage.
What Is ABSD and Why Does It Matter?
ABSD is an additional tax imposed on buyers purchasing second and subsequent residential properties, as well as on all properties purchased by foreign nationals and entities (companies, trusts). Introduced to cool the property market and prioritize owner-occupation, ABSD rates were significantly revised on 27 April 2023 and remain in effect through 2026.[2]
The key difference between BSD and ABSD: BSD applies to all property purchases, while ABSD applies only to specific buyer profiles and property situations. You must pay both taxes, and they are calculated separately on the same purchase price or market value (whichever is higher).[1][2]
For example, a foreigner buying a S$2 million condo in Singapore pays approximately S$92,200 in BSD plus S$1.2 million in ABSD—totaling over S$1.29 million in stamp duty alone.[1] This illustrates why accurate ABSD calculation is critical to your financial planning.
Current ABSD Rates by Buyer Profile (2026)
Your ABSD liability depends entirely on your residential status in Singapore. Here are the current rates applied as of 2026:
| Buyer Profile | 1st Property | 2nd Property | 3rd+ Property |
|---|---|---|---|
| Singapore Citizen (SC) | 0% | 17% | 25% |
| Singapore Permanent Resident (SPR) | 5% | 25% | 30% |
| Foreigner (including US, Taiwan, Hong Kong buyers) | 60% | 65% | 65% |
| Entity (Company, Trust) | 25% | 30% | 30% |
Important note for foreign buyers: If you're an American, Taiwanese, Hong Kong national, or any other non-citizen and non-PR purchasing property in Singapore, you pay a flat 60% ABSD on your first property and 65% on subsequent properties, regardless of how many properties you own.[1][2] This is a significant cost consideration that must factor into your investment decision.
Step-by-Step ABSD Calculation Process
Step 1: Confirm Your Buyer Profile
Before calculating, verify your residential status with the Inland Revenue Authority of Singapore (IRAS). Are you a Singapore Citizen, SPR, foreigner, or purchasing through an entity? This single determination controls your entire ABSD liability.[2]
If you're a foreigner, your status doesn't change based on how long you've lived in Singapore or whether you have a work visa. Foreign nationals pay the foreigner rate regardless of residency duration.
Step 2: Determine the Property Valuation
ABSD is calculated on the higher of purchase price or IRAS market valuation.[2] When you submit your Option to Purchase (OTP), IRAS will assess the property's market value. If this valuation exceeds your purchase price, you pay ABSD on the higher amount.
For example, if you negotiate a S$1.8 million purchase price but IRAS values the property at S$2 million, your ABSD calculation uses S$2 million as the base. This protects the government from undervaluation schemes.
Step 3: Identify Your Property Count
Determine whether this is your first, second, or third-plus residential property. This classification applies to all residential properties you own globally—not just in Singapore.[2] If you own a condo in Bangkok and are buying your first Singapore property, you still pay first-property ABSD rates in Singapore.
However, if you already own an HDB flat in Singapore and are upgrading to a private condo, this new purchase counts as your second property, triggering higher ABSD rates.
Step 4: Apply the ABSD Formula
The calculation is straightforward:
ABSD Payable = Property Valuation (or Purchase Price, whichever is higher) × ABSD Rate for Your Profile[2]
Example 1 – Singapore Citizen Upgrading:
You own an HDB flat and are buying a S$1.5 million private condo as your second property.
ABSD = S$1,500,000 × 17% = S$255,000
Example 2 – Foreign Investor:
You're a US citizen buying a S$2 million condo as your first Singapore property.
ABSD = S$2,000,000 × 60% = S$1,200,000
Example 3 – SPR Second Property:
You're an SPR purchasing a S$900,000 apartment as your second property.
ABSD = S$900,000 × 25% = S$225,000
Step 5: Calculate BSD and Add to ABSD
BSD applies using a marginal tax system with rates of 1%, 2%, 3%, 4%, 5%, and 6% applied to different property value brackets.[3] For a S$2 million property, BSD is approximately S$92,200. Your total stamp duty is BSD + ABSD combined.[1][2]
Using our foreigner example: S$92,200 (BSD) + S$1,200,000 (ABSD) = S$1,292,200 total stamp duty payable within 14 days of signing the Option to Purchase.
