ABSD Stamp Duty Calculator & Guide 2026 | Homejourney

Understanding ABSD: Your Complete Stamp Duty Calculator Guide

The Additional Buyer's Stamp Duty (ABSD) is a critical cost you must understand before purchasing property in Singapore, especially if you're buying a second property or are a foreign buyer. As of 27 April 2023, ABSD rates changed significantly—particularly for foreigners, whose rates doubled from 30% to 60%—making accurate calculation essential to your purchasing decision.

At Homejourney, we prioritize your financial safety by providing transparent, verified information about every cost involved in property transactions. This guide explains how ABSD works, how to calculate it accurately, and how your residency status affects what you'll pay.

What Is ABSD and When Do You Pay It?

ABSD is a tax levied on the purchase of residential properties when you already own properties or meet certain criteria based on your residency status.[3] Unlike the Buyer's Stamp Duty (BSD), which everyone pays on their first property purchase, ABSD applies in specific circumstances determined by your nationality and property ownership history.

You must pay ABSD if you are:

• A Singapore citizen buying a second property or subsequent properties
• A Permanent Resident (PR) buying any property
• A foreigner buying any residential property

Understanding when ABSD applies is crucial because it can add tens of thousands of dollars to your purchase cost. For example, a foreigner buying a $1 million property now pays 60% ABSD on top of BSD—a significant financial commitment that must be factored into your budget.

Current ABSD Rates by Residency Status (2026)

ABSD rates vary dramatically based on your residency status and the number of properties you own. Here's the breakdown as of 27 April 2023:

Singapore Citizens:[3]

• First property: 0% (no ABSD)
• Second property: 17%
• Third and subsequent properties: 25%

Permanent Residents (PRs):[3]

• First property: 5%
• Second property: 25%
• Third and subsequent properties: 30%

Foreigners:[3]

• Any property (first, second, or subsequent): 60%

The significant increase in foreigner ABSD rates reflects Singapore's policy to prioritize housing for citizens and PRs. This makes property investment in Singapore considerably more expensive for foreign buyers compared to local residents.

How to Calculate ABSD: Step-by-Step

ABSD is calculated on the purchase price or market value of the property, whichever is higher.[1] The calculation is straightforward: multiply the property value by the applicable ABSD rate for your residency status.

Basic ABSD Calculation Formula:

ABSD = Property Value (or Market Value, whichever is higher) × ABSD Rate

For example, if you're a Singapore citizen buying a second property worth $800,000, your ABSD would be:

$800,000 × 17% = $136,000

If you're a foreigner buying the same property:

$800,000 × 60% = $480,000

This example demonstrates why ABSD is such a significant consideration in your purchasing decision. The difference between citizen and foreigner rates on this property is $344,000—a substantial amount that affects affordability and investment returns.

To ensure accuracy, Homejourney recommends using an official ABSD calculator from the Inland Revenue Authority of Singapore (IRAS) myTax Portal or consulting with a property agent who has access to current rate tables. The calculation becomes more complex when properties have mixed residential and commercial components, requiring professional valuation.

ABSD vs BSD: Understanding the Difference

Many first-time buyers confuse BSD and ABSD. Here's the critical distinction:

Buyer's Stamp Duty (BSD): Applies to all property purchases, calculated on a tiered basis. As of 15 February 2023, residential property BSD rates are up to 6% on the portion exceeding $3 million.[1]

Additional Buyer's Stamp Duty (ABSD): Applies only to second and subsequent properties (or all properties for foreigners and PRs), calculated as a flat percentage of the total property value.[3]

Both duties apply simultaneously. If you're a Singapore citizen buying a second $800,000 residential property, you pay:

• BSD: approximately $24,000 (tiered calculation)
• ABSD: $136,000 (17% flat rate)
• Total stamp duty: approximately $160,000

This combined cost represents about 20% of the property value—a significant expense that must be included in your total purchase budget alongside legal fees, inspection costs, and renovation expenses.

Comparing Costs: Citizen vs PR vs Foreigner

Your residency status dramatically affects the total stamp duty you'll pay. Let's compare the costs for a $1 million residential property purchase:

This comparison reveals why residency status is critical to property investment strategy in Singapore. A foreigner pays over 16 times more in total stamp duty than a Singapore citizen buying their first property—a $600,000 difference on a $1 million purchase.

For foreigners considering property investment, understanding these costs is essential. Read our detailed guide on Foreigner vs PR vs Citizen: Singapore Property Buying Rules 2026 ">Foreigner vs PR vs Citizen: Singapore Property Buying Rules 2026 to understand all the regulatory differences beyond stamp duty.

Using ABSD Calculators: What You Need to Know

Multiple ABSD calculators are available online, including tools from IRAS and various property portals.[2][3] These calculators typically require you to input:

• Property type (residential or non-residential)
• Purchase price or market value
• Your nationality
• Number of properties you currently own
• Whether it's a joint purchase and co-buyer details

The calculator then instantly displays your estimated BSD, ABSD, and total stamp duty payable.[2] This is invaluable for budgeting purposes.

Important considerations when using calculators:

• Market value matters: If the property's market value exceeds the purchase price, IRAS uses the higher figure for calculation.[1] Professional valuations may be required for older properties or unique situations.
• Joint purchases: When two buyers purchase together, ABSD calculations may differ based on each buyer's individual circumstances. Some calculators allow you to model different ownership structures.
• Property classification: Mixed-use properties (residential plus commercial) require separate valuations for each component, making calculations more complex.[1]
• Rounding rules: BSD is rounded down to the nearest dollar with a minimum duty of $1.[1] Ensure your calculator applies this correctly.

Homejourney recommends verifying calculator results with a qualified property agent or tax professional, particularly for properties exceeding $2 million or with mixed-use components.

Common ABSD Misconceptions and Mistakes

Misconception 1: "I only pay ABSD on my second property"

This is true for Singapore citizens, but PRs pay ABSD on all properties, and foreigners pay 60% ABSD on any property they purchase. Don't assume the same rules apply to everyone.

Misconception 2: "ABSD is only 5-10% of the property price"

For foreigners, ABSD is 60%—more than the property's BSD. For PRs buying a second property, it's 25%. These are substantial costs that dramatically affect investment returns.

Misconception 3: "I can avoid ABSD by using a company to purchase"

IRAS has specific rules about corporate purchases and ABSD liability. Using a company structure doesn't exempt you from ABSD if you're the beneficial owner. Always consult a tax professional before considering alternative purchase structures.

Mistake 1: Not budgeting for total stamp duty

Many buyers calculate only ABSD and forget BSD is also payable. Budget for both duties plus legal fees (typically $1,500-$3,000), inspection costs, and potential renovation expenses. Total closing costs often reach 25-30% of the property value.

Mistake 2: Miscalculating property value

If IRAS determines the market value exceeds your purchase price, you pay stamp duty on the higher amount. For properties purchased below market value, request a professional valuation to confirm IRAS won't challenge your purchase price.

Mistake 3: Ignoring timing for property ownership changes

If you're selling an existing property to purchase another, the timing of completion matters. If both complete on the same day, you may still owe ABSD on the new purchase because you owned the previous property at completion. Plan your transaction timeline carefully.

Strategies to Minimize ABSD Impact

For Singapore Citizens:

• Decoupling: If you're married, consider having your spouse purchase the second property in their sole name (if they don't own property). This allows you to maintain first-property status for future purchases. However, decoupling involves legal complexity and additional costs—consult a lawyer before proceeding.
• Timing your purchase: If you're planning to sell your first property, complete the sale before purchasing your second property to avoid ABSD. However, this creates timing risk if you can't secure your new property immediately.

For PRs:

• Understand citizenship path:

  References

  1. Singapore Property Market Analysis 3 (2026)
  2. Singapore Property Market Analysis 1 (2026)
  3. Singapore Property Market Analysis 2 (2026)