Stamp Duty for Rental Agreements in Singapore: Homejourney Guide
Stamp duty for rental agreements in Singapore is a mandatory tax on tenancy agreements lasting one year or more, typically paid by tenants at 0.4% of total rent for leases up to four years.
This comprehensive Homejourney pillar guide covers tenancy stamp duty, calculations, exemptions, penalties, and practical steps for landlords and tenants. As Singapore's trusted property platform prioritizing user safety and transparency, Homejourney verifies rental details to help you avoid disputes and make confident decisions.
Table of Contents
- Executive Summary
- What is Stamp Duty for Rentals?
- Who Pays Rental Stamp Duty?
- Current Rates and How to Calculate
- Step-by-Step Payment Process
- HDB vs Private Property Differences
- Penalties, Exemptions, and Special Cases
- Common Mistakes and Insider Tips
- Frequently Asked Questions
- Next Steps with Homejourney
Executive Summary
Navigating stamp duty rental obligations is essential for every tenancy in Singapore. Under the Stamp Duties Act, administered by IRAS, stamp duty—often called lease stamp duty—makes your agreement legally enforceable.[5] Failure to pay on time incurs penalties up to 10% plus interest.[3]
Homejourney simplifies this with verified rental listings on our rental search page, where agents explain IRAS stamp duty upfront. Whether you're a tenant facing $96 duty on a $24,000 annual HDB lease or a landlord renting a condo at $36,000 AAR, this 3,500+ word guide provides data-driven insights, tables, and actionable advice.[1][4][5]
What is Stamp Duty for Rental Agreements?
Rental stamp duty, or tenancy stamp duty, is a tax imposed by IRAS on lease or tenancy agreements for immovable properties in Singapore. It applies to residential rentals like HDB flats, condos, and landed homes when the lease exceeds one year or includes renewal options totaling more than one year.[5]
Unlike licence agreements (e.g., hawker stalls), which are exempt, tenancy agreements grant exclusive possession and trigger stamp duty rental.[5] Stamping validates the document for court enforcement, protecting both parties in disputes at the Small Claims Tribunal (up to $20,000).[3]
In Singapore's competitive rental market—where 2026 HDB rents grow at low single digits and private rents by 2.5-3%—understanding rental tax equivalents like this prevents costly oversights.[6]
Types of Rental Agreements Affected
- Fixed-term leases: 12-24 months common for expats.
- Periodic tenancies: Month-to-month, but if over one year cumulative, duty applies.
- Supplemental agreements: Variations like rent hikes require additional stamping.[5]
Short-term stays under one year (e.g., Airbnb-style) often avoid duty but check IRAS adjudication if unsure.[5]
Who Pays Stamp Duty for Rental Agreements?
Tenants typically bear the cost, as stated in most tenancy agreements, but it's negotiable—landlords may cover it to attract renters in soft markets.[1][3][7] IRAS holds the tenant liable unless specified otherwise.[7]
For corporate leases or expats, employers sometimes reimburse. Homejourney agents on our agents page clarify this during viewings, ensuring transparency.
Tenant vs Landlord Responsibilities
| Party | Primary Duty | Example |
|---|---|---|
| Tenant | Pay within 14 days; submit docs | $180 on $60k 2-year lease[3] |
| Landlord | Provide property details; may negotiate payment | HDB owner approves sublet first[Internal HDB rules] |
This table highlights shared accountability, aligning with Homejourney's trust-focused approach.
Current Stamp Duty Rates and Calculation Methods
Rates are based on Average Annual Rent (AAR) or total rent, using contractual or market rent—whichever is higher.[5] Minimum duty: $1, rounded down to nearest dollar.
Stamp Duty Rates Table (2026)
| Lease Period | Rate | Basis |
|---|---|---|
| AAR ≤ $1,000 | Exempt | [5] |
| ≤4 years | 0.4% of total rent | [1][4][5] |
| >4 years/indefinite | 0.4% of 4x AAR | [1][5] |
Calculation Examples
- HDB Flat: $2,000/month x 12 months = $24,000 total. Duty: 0.4% x $24,000 = $96.[4]
- Condo 2 Years: $2,500/month x 24 = $60,000. If tiered: 0.4% first year ($120) + 0.2% second ($60) = $180 (older method; confirm IRAS).[3]
- Long Lease: AAR $36,000 condo >4 years: 0.4% x (4x$36,000) = $576.[1]
- Variation: Rent hike from $5,000 to $6,000/month extension: Duty on differential.[5]
Pro tip: Use IRAS portal for precise quotes. For investors, factor rental tax into yields via Homejourney's bank rates for financing.[5]
Step-by-Step IRAS e-Stamping Process
Pay within 14 days via IRAS e-Stamping portal. No physical stamps needed since 2020.[3]
- Prepare Docs: Signed agreement, NRIC/passport, property address.[3]
- Log In: myTax Portal or e-Stamping.
- Enter Details: Dates, rent, parties. System auto-calculates.[3]
- Pay: Card/GIRO. Download e-stamped PDF.
- Share Copies: Both parties retain for records.
Insider tip: For HDB sublets, get HDB approval first via their portal, then stamp.[Internal HDB rules] Homejourney listings flag stamped-ready agreements.
HDB vs Private Property: Key Stamp Duty Differences
HDB flats require owner approval for subletting (3-year max, whole unit), plus stamp duty on agreements >1 year. Private properties have no such caps but follow same IRAS rates.[5]
- HDB: Min 6 months tenancy; no subletting rooms without approval. Duty same 0.4%.[HDB rules]
- Private: Flexible terms; expats common with diplomatic clauses. See Diplomatic Clause Explained: Expats Exit Leases Early in Singapore | Homejourney ">Diplomatic Clause Explained.[6]
Data: 2026 HDB rents stable; condos up 2.5%. Search verified HDB/private rentals on Homejourney search.
Penalties for Late Payment, Exemptions, and Special Situations
Penalties
- After 14 days: 10% penalty + interest.
- Over 1 month: Additional daily fines.
- Non-payment: Agreement unenforceable in court.[3][5]
Exemptions
- AAR ≤ $1,000.
- Licences (non-exclusive).
- Government leases.[5]
Special Cases
- Foreigners: Same rules; use passport. Diplomatic clause for early exit: Diplomatic Clause Explained: Expats Exit Leases Early in Singapore | Homejourney ">read more.
- Corporate: Company details required.
- Short-term: <1 year exempt, but cumulative watch.
- HDB Sublet: HDB Subletting: LOI to Approval Process Guide | Homejourney ">LOI process first.[5]
For furnished rentals, inventory checklists prevent disputes: Furniture Inventory Checklists for Singapore Rentals: Tenant Protection Guide ">guide here.
Common Mistakes, Original Insights, and Practical Tips
Mistake 1: Assuming landlord pays—check clause.[7] Insight: In 2026's softening market, negotiate landlord coverage for premium units (e.g., Orchard Road condos).[6]
Mistake 2: Forgetting variations—rent hikes trigger new duty.[5] Tip: Use Homejourney agents for clause reviews.
Insider Tip (Local Experience): For Tengah HDB or Punggol exec flats, factor MRT proximity (e.g., 5-min walk from Punggol MRT); duty on $3,500/month 24-month = $168. Verify via projects directory.
For Landlords: Declare rental income to IRAS; offsets via mortgage rates. Maintenance? Aircon Services ">Aircon services.
Original Analysis: With rents rising 2.5%, duty averages $100-500, or 0.2-0.5% of first-year rent—negligible vs security deposits (1-2 months).[6] Always prioritize stamped agreements for Tribunal claims.
Frequently Asked Questions on Rental Stamp Duty
Q: When is stamp duty payable on rental agreements?
A: Within 14 days of signing for leases >1 year.[3][5]
Q: How much is tenancy stamp duty for a $4,000/month condo 24 months?
A: Total $96,000 x 0.4% = $384.[1]
Q: Does stamp duty apply to HDB room rentals?
A: No subletting without HDB approval; then yes if >1 year.[5]
Q: Who pays if not specified? Can landlord refuse stamped copy?
A: Tenant liable; both need copies for validity.[7]
Q: Penalty for late rental stamp duty payment?
A: Up to 10% + interest; use e-Stamping reminders.[3]
Q: Stamp duty for short-term expat rentals under 12 months?
A: Exempt, but confirm no auto-renewal.[5]
Q: How does diplomatic clause affect stamp duty?
A: Doesn't; early termination separate. See Diplomatic Clause Explained: Expats Exit Leases Early in Singapore | Homejourney ">details.
Q: Good faith deposit vs stamp duty?
A: Deposit refundable; duty non-refundable tax. Good Faith Deposit Refunds & Disputes: Singapore Rental Guide | Homejourney ">Guide.
Disclaimer: This is general info; consult IRAS/lawyer for advice. Homejourney verifies but not legal counsel.
Next Steps: Secure Your Rental with Homejourney
Ready for a safe rental? Search verified properties with clear stamp duty rental terms on Homejourney rental search. Connect with trusted agents at homejourney.sg/agents who prioritize transparency.
Homejourney builds trust through verified listings, user feedback, and full support—from stamping to move-in. Start your secure journey today.
