Singapore Rental Income Tax Calculator

How Singapore Rental Income Tax Is Calculated

Singapore rental income tax is calculated by adding your net rental income (gross rent minus allowable deductions) to your other chargeable income (employment income, business income, etc.) and applying IRAS progressive personal income tax rates for Year of Assessment 2026. There is no separate rental income tax rate — the income is taxed at your marginal personal rate. Based on IRAS Tax Rates for Resident Individuals 2026.

Key allowable deductions include: mortgage interest (only the interest component — not principal repayments), property tax, fire insurance premiums, cost of repairs and maintenance (not improvements), agent commission fees, management fees for strata properties, and depreciation on furniture and fittings at prescribed IRAS rates. Renovation costs are not deductible as they are capital in nature.

HDB vs Condo Rental Tax — Key Differences

Both HDB flat rental income and private property (condo, landed) rental income are taxed the same way under personal income tax in Singapore. However, there are regulatory differences: HDB flat owners must obtain HDB approval to rent the entire flat (minimum 6 months, occupancy rules apply), while private property owners have more flexibility. From a tax perspective, the IRAS treatment is identical — both must declare rental income and can claim the same categories of allowable expenses.

A common misconception is that HDB rental income is exempt from tax. It is not. IRAS receives annual property transaction data from HDB and URA, so undeclared rental income is detectable. First-time landlords who have been renting without declaring income can make voluntary disclosures to IRAS for a reduced penalty.

Maximising Deductions on Singapore Rental Income

The most frequently missed deductions are: (1) Property tax — often paid as part of GIRO and forgotten at tax time; (2) Furniture and fittings depreciation — IRAS allows depreciation at 1/3 of cost per year for initial 3 years; (3) Mortgage interest — you must separate interest from principal in your loan statements, as only interest is deductible; (4) Agent fees — both the initial letting fee and renewal fees are deductible. Keeping receipts and bank statements is essential for supporting your claims.

This calculator computes your marginal tax rate by first calculating the total tax on all income combined, then subtracting the tax on non-rental income only — giving you the precise tax attributable to your rental income.