Affects marginal tax rate on rental income.
Monthly Net Rental
$1,814.25
Annual Tax on Rental
$2,829.00
Effective Rate on Rental
11.5%
How is rental income taxed?
Rental income is added to your other assessable income and taxed at progressive rates (0% to 22%). You can deduct expenses directly related to earning the rental income, including property tax, mortgage interest, maintenance, insurance, and agent commissions.
Deductible expenses
IRAS allows deductions for: property tax, fire insurance, mortgage interest (on the loan used to purchase the property), maintenance and repairs, agent fees and commissions, and costs of finding tenants (advertising). Capital expenditure like renovation costs are generally not deductible.
IRAS-Aligned: Uses YA 2025 progressive tax rates. Consult a tax professional for complex property portfolios.
How IRAS taxes property rental income and what expenses you can deduct
How is rental income taxed in Singapore?
Rental income is added to your other income and taxed at progressive rates from 0% to 24%. If you earn S$80,000 from your job and S$24,000 from renting out a property, your total income is S$104,000. The rental income is taxed at the marginal rate that applies to the top slice of your combined income — likely 11.5% to 15% in this example.
What expenses can you deduct from rental income?
You can deduct expenses that are wholly and exclusively for earning the rental income. Common deductions include: property tax, fire insurance, mortgage interest (not principal repayment), maintenance and repairs, property agent commission, advertising costs, and furniture depreciation. You cannot deduct renovation costs that improve (rather than repair) the property.
Can you deduct mortgage interest on your rental property?
Yes. Interest on a loan used to buy or renovate the rental property is deductible. If your monthly mortgage payment is S$2,500 and S$1,200 is interest, you can deduct S$14,400 per year. The principal repayment (S$1,300 per month) is not deductible. Keep your bank statements or loan schedule as proof for IRAS.
What is the deemed expenses option for rental income?
IRAS offers a simplified method where you deduct 15% of your gross rent as deemed expenses instead of tracking actual costs. This covers everything except mortgage interest, which you can claim separately. If your annual rent is S$36,000, the deemed deduction is S$5,400. This is useful if your actual expenses are low or you do not want the hassle of keeping receipts.
Do you need to pay tax on rental income from HDB flats?
Yes. Renting out your HDB flat or spare rooms is taxable. The income must be declared in your tax return. You can deduct expenses or use the 15% deemed expenses method. Note that HDB has separate rules about who can rent and for how long — you need HDB approval before renting, and the minimum rental period is six months.
How do you report rental income to IRAS?
Report rental income in your annual income tax return (Form B or Form B1). You must declare gross rent received, deductible expenses, and the net rental income. IRAS pre-fills some information from stamp duty records. Even if your rental expenses exceed your rental income (creating a loss), you should still declare it — the loss may be carried forward to offset future rental income.
Is rental income from Airbnb or short-term stays treated differently?
The tax treatment is the same — all rental income is assessable. However, short-term rentals of private residential properties (under three months) are generally not allowed under URA rules without approval. HDB flats cannot be listed on Airbnb at all. If you do earn short-term rental income legally, declare it and deduct allowable expenses the same way.
IRAS-Aligned: Based on 2025 IRAS rates and thresholds. For personal advice, speak to a qualified tax professional.
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Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms