Disclaimer (Block 1): This article is for educational purposes only and is intended to assist CEA-registered property agents in understanding regulatory frameworks. It does not constitute financial, tax, or legal advice. LEVR's calculations are indicative only. Always verify rates and eligibility with your bank, HDB, CPF Board, or a licensed financial advisor before advising clients.
Rental Income Is Taxable in Singapore
Rental income received by Singapore tax residents is taxable under the Income Tax Act. There is no separate "property income tax" — rental income is added to the individual's assessable income and taxed at the applicable personal income tax rates (progressive, 0%–24% for residents as at 2026).
The obligation applies to:
- Rental income from private residential properties (condominiums, landed)
- Rental income from HDB flats (where subletting is approved by HDB)
- Rental income from commercial properties
- Rental income from overseas properties received in or remitted to Singapore
IRAS requires landlords to declare rental income in their annual income tax return (Form B1 for residents). Failure to declare is a tax offence.
Allowable Deductions Against Rental Income
Landlords can deduct certain expenses incurred in producing the rental income. IRAS allows the following against gross rental income:
- Mortgage interest: Only the interest portion of mortgage repayments is deductible — not principal repayment. The interest must relate to the loan used to acquire the rental property.
- Property tax: Property tax paid on the rental property is a deductible expense.
- Fire insurance: Premium for fire insurance on the rental property.
- Maintenance and repairs: Costs to maintain the property in its existing condition (repairs, not improvements). Significant capital improvements are generally not immediately deductible.
- Agent commission: Estate agent's commission for securing the tenancy.
- Advertising costs: Cost of advertising the property for rent.
- MCST maintenance fees (for strata properties): Monthly management fees paid to the MCST are deductible.
- Utilities paid by landlord: If the landlord pays utilities on behalf of the tenant (as part of the rental arrangement), these are deductible.
The 15% Deemed Rental Expense Option
As an alternative to claiming actual expenses, IRAS allows landlords to claim a15% deemed rental expense deduction of gross rental income in lieu of itemising actual expenses (other than mortgage interest, which can still be separately claimed on top of the 15%).
This is useful for landlords with minimal actual expenses or those who do not keep detailed records. The choice between actual expenses and the 15% deemed deduction should be made based on which gives a larger total deduction.
Vacant Period: Is the Property Still Deductible?
If a property is vacant between tenancies, expenses incurred during the vacant period (mortgage interest, property tax, insurance) are generally deductible if:
- The vacant period is incidental to the letting business (e.g., between tenancies)
- The landlord is genuinely attempting to re-let the property
- The property is not being used for private purposes during the vacant period
If the property is left vacant for an extended period without genuine effort to rent, IRAS may disallow the deductions for the vacancy period.
What Agents Can and Cannot Say
CEA-registered agents are not tax advisors. Agents should not:
- Tell clients specifically what they can or cannot deduct
- Advise on tax structuring or whether to hold property in personal or company name for tax optimisation
- Complete or assist in completing a client's IRAS tax return
Agents can and should:
- Inform clients that rental income is taxable and must be declared to IRAS
- Mention that allowable deductions exist (mortgage interest, property tax, agent commission) and suggest the client consult a tax professional
- Provide gross rental figures accurately when asked to support a client's tax return preparation
- Confirm that agent commission receipts are available if the client needs them for deduction purposes
Q: Does the landlord need to declare rental income if the tenant pays the property tax?
A: Yes. The landlord's obligation to declare rental income to IRAS is based on the rent received — not who pays property tax. Arrangements where the tenant pays property tax directly to IRAS on behalf of the landlord are uncommon and do not reduce the landlord's assessable income.
Q: Is rental income from subletting an HDB flat taxable?
A: Yes. HDB flat subletting income is taxable in the same way as private property rental income. HDB subletting approval does not affect IRAS tax treatment. Landlords subletting HDB rooms or the entire flat (where they are living elsewhere) must declare the income annually.
Q: Can a landlord deduct the cost of furnishing the property?
A: Furnishing costs are generally capital expenditure and not immediately deductible as revenue expenses. Some agents advise landlords to present properties as furnished because it supports higher rent — but the cost of the furnishings is not a direct deduction against rental income. Landlords should seek specific tax advice on their situation.
Disclaimer (Block 3): LEVR's calculator outputs are estimates based on inputs provided and current regulatory parameters as known at time of publication. They are not a guarantee of borrowing capacity, stamp duty liability, or CPF eligibility. Regulatory thresholds and rates may change. Always verify with IRAS, your bank, or a licensed financial advisor before making financial decisions.