Stamp Duty on a S$2,500,000 Property in Singapore
Buying a S$2,500,000 home in Singapore means paying S$94,600.00 in Buyer's Stamp Duty, plus Additional Buyer's Stamp Duty if it is not your first property or you are not a citizen.
Buyer's Stamp Duty workings
| Band | Rate | BSD |
|---|---|---|
| S$0.00 – S$180,000.00 | 1% | S$1,800.00 |
| S$180,000.00 – S$360,000.00 | 2% | S$3,600.00 |
| S$360,000.00 – S$1,000,000.00 | 3% | S$19,200.00 |
| S$1,000,000.00 – S$1,500,000.00 | 4% | S$20,000.00 |
| S$1,500,000.00 – S$2,500,000.00 | 5% | S$50,000.00 |
ABSD by buyer
| Buyer | ABSD rate | ABSD | Total stamp duty |
|---|---|---|---|
| Citizen, 1st property | 0% | S$0.00 | S$94,600.00 |
| Citizen, 2nd property | 20% | S$500,000.00 | S$594,600.00 |
| PR, 1st property | 5% | S$125,000.00 | S$219,600.00 |
| PR, 2nd property | 30% | S$750,000.00 | S$844,600.00 |
| Foreigner | 60% | S$1,500,000.00 | S$1,594,600.00 |
When and how to pay
Stamp duty is due within 14 days of signing the sale and purchase agreement or exercising the option to purchase. You pay IRAS in cash first; BSD can then be reimbursed from your CPF Ordinary Account, but ABSD rules differ, so check with your lawyer.
Before you sign
- Using CPF for housing reduces what is left for retirement, and you must refund the amount used plus accrued interest when you sell.
- Budget for legal fees, valuation, renovation and moving costs on top of the downpayment and stamp duties.
- Seller's Stamp Duty can wipe out the gains on a quick resale, so check your holding period before selling.
- Banks test your TDSR at a stress-test rate, not the advertised rate, so your borrowing limit is lower than you might expect.
Background
Stamp duties are paid upfront. Buyer's Stamp Duty applies to every purchase at tiered rates up to 6%, while ABSD depends on the buyer's residency status and how many residential properties they already own. Sellers who dispose of a property within the holding period pay Seller's Stamp Duty.
CPF Ordinary Account savings can pay for the downpayment, stamp duties and monthly instalments, but using CPF reduces the money compounding for retirement, and the amount withdrawn plus accrued interest must be refunded to your CPF account when you sell.
Beyond the price, buyers should budget for legal fees, valuation, home insurance, renovation and furnishing. Running the figures in advance helps you decide how much cash to hold back and whether a smaller loan or longer tenure makes more sense.
Related calculations
- Property Affordability Calculator: Estimates the biggest loan and property price your income supports under TDSR, using the stress-test rate banks apply.
- Rental Yield Calculator: Measures the return from rent before and after costs such as property tax, maintenance fees and agent fees.
- Home Loan Refinancing Calculator: Compares your current mortgage with a new rate to show the monthly saving and how long switching costs take to recover.
- Property Downpayment Calculator: Splits the downpayment into cash and CPF and shows the remaining loan.
Change the price and buyer profile in the Stamp Duty on a S$2,500,000 Property Calculator.
Run your own numbers: Stamp Duty on a S$2,500,000 Property Calculator