Quick answer
Buyer’s Stamp Duty, commonly called BSD, is generally payable when property in Singapore is bought or acquired. IRAS calculates it on the higher of the purchase price stated in the document or the property’s market value.
For residential property acquired on or after 15 February 2023, the marginal BSD bands run from 1% to 6%. The rates are applied progressively rather than charging the highest percentage reached on the entire property value. BSD is separate from Additional Buyer’s Stamp Duty, so some buyers may need to budget for both.
Residential BSD rates at a glance
| Residential value band | Marginal BSD rate |
|---|---|
| First S$180,000 | 1% |
| Next S$180,000 | 2% |
| Next S$640,000 | 3% |
| Next S$500,000 | 4% |
| Next S$1,500,000 | 5% |
| Amount above S$3,000,000 | 6% |
IRAS states that BSD is rounded down to the nearest dollar, subject to a minimum duty of S$1. These residential bands apply to acquisitions on or after 15 February 2023.
Key takeaways
- IRAS computes BSD on the higher of the stated purchase price or market value.
- Residential BSD is calculated progressively across marginal bands.
- The top residential rate is 6% on the portion above S$3 million, not on the entire value.
- A Singapore citizen buying a first property still pays BSD.
- ABSD is a separate duty and may apply in addition, depending on the buyer and transaction.
- Mixed-use, trust, gift, company, estate and other non-standard acquisitions require transaction-specific legal and tax review.
Background
Stamp duty is a tax on documents relating to a transaction. In a typical property purchase, the first executed instrument connected with the sale and purchase is the document on which the full ad valorem duty is charged.
BSD should be included in the acquisition budget before a buyer commits to a property. It is different from the downpayment, legal fees, valuation costs, mortgage expenses, renovation costs and any ABSD that may apply.
Latest IRAS guidance
Current IRAS guidance states that BSD is computed on the higher of the purchase price or market value. For residential acquisitions from 15 February 2023, the top marginal rate is 6%. The rate table above should be checked again on the official IRAS page before signing because rules, procedures and transaction facts can change.
Who is affected
The guidance is relevant to people acquiring residential property in Singapore, including first-home buyers, HDB flat buyers, private-home buyers, HDB owners planning an upgrade, buyers acquiring an additional residential property and joint buyers.
Certain gifts, trusts, distributions and other transfers may also involve BSD. The actual treatment depends on the documents and transaction.
Who is not affected
A person who is only viewing, renting or negotiating for a property has not necessarily triggered BSD. The relevant executed acquisition document and transaction facts matter.
This guide does not determine whether ABSD applies, whether CPF funds can be used in the intended way, whether a remission or relief is available, the treatment of a mixed-use, trust, company or estate transaction, financing approval, or the market value accepted for stamp-duty assessment.
What remains unchanged
BSD and ABSD remain separate duties. IRAS states that liable buyers pay ABSD in addition to BSD. ABSD depends on factors such as the buyer profile, residency status, property count and whether an entity or trust is involved.
The calculation continues to use the higher of the purchase price or market value. A lower negotiated price does not automatically mean the same figure will be accepted as the dutiable value.
Property classification also matters. Residential and non-residential property use different top marginal rates, while mixed-use property may require its residential and non-residential components to be assessed separately.
Planning considerations
Calculate BSD progressively
Do not multiply the entire property value by the highest band reached. Apply each marginal percentage only to the part of the value within that band.
Use the correct value
Prepare the estimate using the higher of the agreed price or market value. If the property value, consideration or benefit structure is unusual, ask the conveyancing lawyer how the IRAS rules apply before relying on an online estimate.
Keep BSD separate from ABSD
A first-home buyer may have no ABSD under the applicable buyer profile but still pays BSD. Conversely, a buyer who is liable for ABSD generally needs to budget for both duties.
Review the complete purchase budget
The purchase budget may also include the option fee, downpayment, legal costs, valuation, mortgage duty, loan-related costs, renovation and a cash buffer. Buyers using CPF should confirm the applicable CPF rules and timing rather than assume every acquisition cost can be funded in the same way.
Confirm the document and deadline
IRAS refers to the executed acquisition document when determining duty. The exact instrument and deadline can differ according to where and how it is executed. The conveyancing lawyer should confirm the stamping responsibility and timing for the actual transaction.
Get advice for non-standard transactions
Joint acquisitions, gifts, trusts, company purchases, inherited property, mixed-use premises and transfers arising from legal proceedings can involve additional rules. This guide should not be used as the sole basis for structuring such a transaction.
FAQ
Sources
This article is for general educational discussion. Buyers should verify the current IRAS rules and obtain legal, tax, CPF and financing advice for the actual transaction before committing.