Amidst the evolving Singapore rental market, demand for rental units has continued to grow, with condo and HDB rental prices rising more in 2024. As rental trends remain strong into 2025, understanding the stamp duty for tenancy agreements has become increasingly crucial for both landlords and tenants.
Whether you are preparing a rental agreement or managing a property, understanding your obligations regarding rental stamp duty or stamp duty on rental agreements is crucial. It helps ensure compliance with Singapore law and avoid penalties. This guide provides a complete overview of rental stamp duty, including rates, processes, and key considerations for 2025.
Watch Our Video on Stamp Duty for Rental Units in Singapore
Stamp Duty for Rental Units in Singapore: Who Pays for It?
In Singapore, stamp duty for rental agreements is typically the responsibility of the tenant, though in some cases, the landlord may agree to cover it. Stamp duty applies to both HDB flats and private properties when the tenancy lasts more than a year. Understanding who pays ensures there are no surprises during lease signing.
A stamp duty rental agreement is a tenancy contract that has been officially stamped by IRAS, making it a legally recognised and enforceable document. Understanding who pays and what stamping means ensures there are no surprises during lease signing and helps avoid penalties.
How Much Stamp Duty Are You Supposed to Pay?
The amount of stamp duty depends on the monthly rent and tenancy period. For leases of 12 months or longer, tenants must pay stamp duty calculated based on the total rent payable over the lease term.
Rental Stamp Duty in Singapore: How Is It Calculated?
| Tenancy Period | Rate of Stamp Duty |
| Up to 1 year | 0.4% of total rent |
| More than 1 year | 0.4% of first year rent + 0.2% for each additional year |
Example: If your rent is $2,500 per month for 2 years, the total rent over the 2 years is $60,000. Stamp duty = 0.4% of $30,000 (first year) + 0.2% of $30,000 (second year) = $120 + $60 = $180.
When to pay stamp duty for rental?
Rental stamp duty must be paid within 14 days from the date of signing the tenancy agreement. Payment is made to the Inland Revenue Authority of Singapore (IRAS), and you can submit it electronically via IRAS’ e-Stamping system for convenience. Timely payment ensures your rental agreement is legally recognised and avoids penalties.
How Stamp Duty Affects Landlords and Tenants
Stamp duty for rental units in Singapore plays a crucial role in defining the financial and legal responsibilities of both tenants and landlords. Understanding its impact helps avoid disputes, fines, or legal complications.
1. Tenants’ Responsibilities
- Payment Obligation: In most rental agreements, tenants are responsible for paying stamp duty if the tenancy lasts 12 months or more. The stamp duty amount is calculated based on the total rent payable over the duration of the lease.
- Legal Recognition: Timely payment of stamp duty ensures that the tenancy agreement is legally recognised by the Inland Revenue Authority of Singapore (IRAS). This protects tenants in case of disputes over rental terms.
- Avoiding Penalties: Failure to pay within the 14-day window from signing can lead to penalties, interest charges, and additional fines, making it crucial for tenants to act promptly.
2. Landlords’ Responsibilities
- Optional Payment: While the tenant usually pays stamp duty, landlords may choose to cover it as part of lease negotiations. For example, some landlords may agree to pay the stamp duty to attract tenants quickly.
- Ensuring Enforceability: Landlords must make sure the tenancy agreement is stamped. An unstamped deal is not legally enforceable, which could prevent landlords from taking legal action for unpaid rent or lease violations.
- Protecting Investment: Stamp duty safeguards landlords by confirming that the tenancy agreement is official and recognised by law, which is essential if any disputes arise during the tenancy period.
3. Legal Implications for Both Parties
- Binding Agreement: A stamped agreement serves as valid proof of the tenancy’s terms and conditions in court, including rent, duration, and other relevant clauses.
- Avoiding Disputes: Both parties are protected under Singapore law, and a properly stamped document reduces the risk of disputes escalating.
- Peace of Mind: Understanding who pays and ensuring the stamp duty is completed creates a transparent rental process, benefiting both tenants and landlords.
How to Do Stamp Duty for Tenancy Agreement?
Paying stamp duty rental online is straightforward via the IRAS e-Stamping system. If you’re wondering where to pay stamp duty for tenancy agreement in Singapore, follow these simple steps:
- Prepare Your Tenancy Agreement
Ensure your tenancy agreement is complete, signed by both the tenant and the landlord, and saved as a digital copy (PDF format is recommended). - Log in to IRAS e-Stamping
Visit the IRAS e-Stamping website, go to the myTax Portal and log in using your SingPass. - Enter Agreement Details
Input the tenancy details: property address, lease start and end dates, rental amount, and tenant/landlord information. - Verify Stamp Duty Amount
The system will automatically calculate the stamp duty based on the total rent payable and tenancy duration. - Make Payment
Pay the calculated stamp duty online via credit card, debit card, or GIRO. - Download e-Stamped Agreement
Once payment is successful, download the e-stamped agreement. This acts as official proof of stamp duty payment. - Keep Records
Retain a copy of the e-stamped agreement for your records and future reference.
Note: Payment must be made within 14 days of signing the agreement to avoid penalties.
Common Mistakes to Avoid When Paying Rental Stamp Duty
Although paying stamp duty may seem straightforward, many tenants and landlords make mistakes that can result in fines, delays, or legal complications. Being aware of these common errors helps avoid unnecessary issues.
1. Missing the Payment Deadline
- Stamp duty must be paid within 14 days of signing the tenancy agreement.
- Late payment may result in a penalty of up to 10% of the stamp duty amount, as well as interest on any unpaid sum.
- Using the IRAS e-Stamping system and setting reminders can help avoid missing the deadline.
2. Incorrect Calculation of Stamp Duty
- The standard stamp duty rate for leases of four years or less is 0.4% on total rent. A different calculation applies for leases exceeding four years or those with indefinite terms, based on four times the average annual rent.
- Tenants sometimes miscalculate or overlook the additional years, leading to underpayment or errors.
- The IRAS e-Stamping system automatically calculates the correct amount, reducing human error.
3. Submitting an Unstamped or Partially Stamped Agreement
- Uploading only part of the tenancy agreement or an incomplete document can make the stamp invalid.
- Ensure the entire deal, including annexures or additional pages, is included in the PDF.
- Double-check before submission to confirm every page is accounted for.
4. Incorrect or Missing Personal or Property Details
- Mistakes in tenant or landlord names, property address, or unit number can cause IRAS to reject the stamp duty payment.
- Always verify all details before submitting the agreement to prevent delays or rejection.
5. Paying via Unauthorised Channels
- Stamp duty must be paid through IRAS e-Stamping or approved SingPost Service Bureaus.
- Payments made through unofficial channels are not recognised, which could leave the agreement legally unenforceable.
6. Not Keeping Proof of Payment
- After payment, tenants and landlords must download the e-stamped agreement and retain it for future reference.
- This proof is essential in the event of disputes or for any verification requests by IRAS.
What Are the Documents Needed to Pay the Stamp Duty?
Before paying your rental stamp duty, it’s essential to ensure that all your paperwork is prepared correctly and verified. Having the proper documents helps avoid delays during submission and ensures IRAS accepts the tenancy agreement without issues. To pay rental stamp duty in Singapore, you need to prepare the following documents:
- Signed Tenancy Agreement
Both the tenant and landlord signed the lease agreement. This serves as the primary document for calculating stamp duty. - Proof of Identity
NRIC for Singapore Citizens and Permanent Residents, or a valid passport for foreigners involved in the tenancy. - Property Details
Information about the property being rented, including the address, type of property (HDB or private), and unit number. - Payment Method Details
Bank account, credit/debit card, or GIRO information to complete the online payment via the IRAS e-Stamping system. - Supporting Documents (if applicable)
Any additional documents requested by IRAS, such as authorisation letters if someone else is paying on behalf of the tenant or landlord.
Renting a home in Singapore?
Learn the key tenancy clauses every tenant should understand before signing.
Tenancy Agreement: Where Else Can You Get It Stamped?
The fastest way to stamp your tenancy agreement is online via the IRAS e-Stamping portal. If you prefer a physical option, you can visit selected SingPost Service Bureaus, where you’ll need to complete a requisition form and pay a small service fee. Alternatively, you can go to any of the locations listed below to have your agreement stamped manually.
Novena Post Office
Revenue House, 55 Newton Road, #01-02, Singapore 307987
Mon to Fri: 8:30 am to 5:30 pm
Sat: 8:30 am to 1:00 pm
Sat: 8:30 am to 1:00 pm
Raffles Place Post Office
Ocean Financial Centre, 10 Collyer Quay, #B1-11, Singapore 049315
Mon to Fri: 8:30 am to 6:00 pm
Shenton Way Post Office
Downtown Gallery, 6A Shenton Way, #03-23, Singapore 068815
Mon to Fri: 8:30 am to 6:00 pm
Chinatown Post Office
People’s Park Centre, 101 Upper Cross Street, #B1-17A, Singapore 058357
Mon to Fri: 9:30 am to 6:00 pm
Sat: 9:30 am to 2:00 pm
Sat: 9:30 am to 2:00 pm
Penalties for Failing to Pay the Stamp Duty for Rental Property
Failing to pay stamp duty for a rental property in Singapore can lead to serious consequences. The Inland Revenue Authority of Singapore (IRAS) strictly enforces the rules to ensure all tenancy agreements are properly stamped. Here’s what you need to know:
- Late Payment Penalty
If stamp duty is not paid within 14 days of signing the tenancy agreement, IRAS may impose a penalty of up to 10% of the stamp duty amount. - Additional Fines
Continued failure to pay can lead to further fines or legal action, depending on the duration of non-compliance. - Legal Implications
An unstamped tenancy agreement is not legally enforceable in court. This means that in case of a dispute between tenant and landlord, the agreement may not be accepted as valid evidence. - Interest on Late Payment
IRAS may charge interest on the unpaid stamp duty, increasing the overall amount you owe.
Note: Always pay your stamp duty on time to avoid penalties and ensure your rental agreement is fully compliant with the law. Using the IRAS e-Stamping system is the quickest and most secure way to make a payment.
Understanding stamp duty for rental units in Singapore is an essential part of any tenancy process. It ensures that your lease agreement is legally valid, protects both landlords and tenants, and helps avoid unnecessary penalties or disputes.
Whether you are renting an HDB flat or a private property, always pay attention to the correct stamp duty amount, payment deadline, and documentation. Submitting your payment through the IRAS e-Stamping portal is the most convenient and reliable way to complete the process. By staying informed and compliant, both parties can enjoy a smooth and worry-free rental experience.
For more property news, content and resources, check out PropertyGuru’s guides section.
Looking for a new home? Head to PropertyGuru to browse the top properties for sale in Singapore.
Disclaimer: The information is provided for general information only. PropertyGuru Pte Ltd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.