Stamp Duty on Rental Agreements: Homejourney Singapore Guide
Stamp duty on rental agreements in Singapore is a tax of 0.4% of total rent for leases up to four years, payable by tenants within 14 days of signing, making the agreement legally enforceable.[1][4][6]
This Stamp Duty on Rental Agreements: Complete Singapore Guide from Homejourney breaks down calculations, exemptions, and steps for HDB and private properties. As Singapore's trusted property platform prioritizing user safety and transparency, Homejourney verifies rental terms to help tenants and landlords avoid penalties up to 10% plus interest.[1][6]
What Triggers Stamp Duty on Rental Agreements?
Stamp duty applies to tenancy agreements granting exclusive possession for one year or more, unlike short-term licences (e.g., under 12 months or Airbnb-style stays).[1][5][6]
Fixed-term leases (12-24 months common for expats) and periodic tenancies exceeding one year cumulatively require payment. Supplemental agreements for rent hikes or extensions also incur duty on the differential amount.[1][6]
Homejourney tip: Always distinguish LOI vs Tenancy Agreement: Singapore Rental Guide | Homejourney ">LOI vs tenancy agreement—Letters of Intent (LOI rental) or rental intent documents under one year often skip duty, but confirm with IRAS to avoid surprises.[1]
HDB vs Private Property Differences
HDB rentals follow the same 0.4% rate but add subletting rules: minimum 6 months, maximum 3 years whole unit, owner-occupier approval needed.[1] Private condos offer flexibility, popular with expats using diplomatic clauses—see Diplomatic Clause Explained: Early Lease Exit for Expats | Homejourney ">Diplomatic Clause Explained.[1]
Insider tip from Homejourney experts: In Punggol HDB (5-min walk from MRT), a $3,500/month 24-month lease incurs $168 duty—negligible vs 2 months' security deposit, but essential for Small Claims Tribunal enforcement (up to $20,000).[1]
Current Stamp Duty Rates and Calculations (2026)
Rates use contractual or market rent (higher prevails), rounded down to the nearest dollar, minimum $1.[6] Leases ≤4 years: 0.4% total rent. >4 years: 0.4% of 4x Average Annual Rent (AAR).[1][4][6]
| Lease Period | Rate | Basis |
|---|---|---|
| AAR ≤ $1,000 | Exempt | [1] |
| ≤4 years | 0.4% total rent | [1][4][6] |
| >4 years | 0.4% of 4x AAR | [1][6] |
Examples: HDB $2,000/month x12 = $24,000; duty $96.[1][4] Condo $2,500/month x24 = $60,000; duty $240.[2] Room rental $500/month x24 = $12,000; duty $48—short-term under 12 months exempt.[2]
For investors, factor this into yields alongside Homejourney bank rates. Use IRAS e-Stamping portal for quotes.[6]
Who Pays Stamp Duty and How to Pay
Tenants typically pay, as per standard clauses, but negotiate if needed—link to Key Tenancy Agreement Clauses to Negotiate for Tenants | Homejourney ">Key Tenancy Clauses to Negotiate.[1][5]
Steps: 1) Sign agreement with witnesses. 2) Gather NRIC/passport, property details. 3) Pay via IRAS e-Stamping within 14 days. 4) Download stamped copy.[5][6]
- Access IRAS portal.
- Upload scanned agreement.
- Calculate and pay online (credit card, GIRO).
- Receive digital stamp—print for records.
Landlords declare rental income to IRAS; unstamped agreements risk unenforceability in disputes.[1][6] Homejourney verifies agent-drafted agreements for transparency.
Penalties, Exemptions, and Special Cases
Late payment: 10% penalty + interest. Unpaid: Document inadmissible in court.[1][6] Exemptions: AAR ≤$1,000/month, short-term <1 year, certain licences.[1]
Special cases: Foreigners same rules; corporate leases use company details. HDB subletting needs HDB portal approval first.[1] Rent variations (e.g., $5,000 to $6,000/month): Duty on increase only.[6]
Pro tip: For maintenance post-stamping, check Aircon Services ">Homejourney aircon services. Disputes? Community Mediation Centre or Small Claims Tribunal.[1]
Actionable Steps for Safe Rentals with Homejourney
1. Review lease on Homejourney rental search for stamped-ready terms. 2. Connect with verified agents via Homejourney agents who explain duty. 3. Calculate via IRAS before signing. 4. Stamp promptly for protection.[1][6]
Homejourney's verified listings prioritize fair terms, building trust in Singapore's market where private rents rose 2.5-3% in 2026.[1] See our pillar on rental basics for full coverage.
Disclaimer: This guide provides general info; consult IRAS or lawyer for advice. Homejourney not legal counsel.
FAQ: Stamp Duty on Rental Agreements
Q: Does stamp duty apply to LOI or letter of intent rentals?
A: No, if under 1 year and not a full tenancy—LOI signals rental intent but lacks duty. Confirm LOI vs Tenancy Agreement: Singapore Rental Guide | Homejourney ">tenancy agreement difference.[1]
Q: Who pays stamp duty—tenant or landlord?
A: Usually tenant, but negotiable. Unstamped risks both parties in disputes.[5][6]
Q: Short-term expat rental under 12 months?
A: Exempt, unless auto-renewal pushes over 1 year.[1][5]
Q: HDB room rental stamp duty?
A: Same 0.4% if >1 year, but HDB approval needed—no room subletting without consent.[1]
Q: How to avoid penalties?
A: e-Stamp within 14 days. Use Homejourney's verified rentals for smooth process.[6]
Ready for hassle-free rentals? Search verified properties on Homejourney and connect with trusted agents. Link back to our full tenancy pillar for more.
