Rental income tax in Singapore 2026: deduct 15% of the rent plus mortgage interest — or your actual costs, with five years of records

Summary

Rent from a Singapore home is taxed on the net amount, meaning gross rent minus allowable expenses, according to the Inland Revenue Authority of Singapore (IRAS). Individuals who rent out residential property can deduct a flat 15% of the gross rent as deemed expenses, plus their mortgage interest, instead of adding up actual costs. The option has applied since the Year of Assessment (YA) 2016, and IRAS published the third edition of its guide to it on 30 Jan 2026.

Landlords who claim actual expenses must keep receipts for at least five years. IRAS does not allow some costs at all, including initial repairs and renovation. Since YA 2022, costs of securing a tenant, including the first, can be deducted for leases of up to three years.

What counts as rental income

IRAS's quick guide for YA 2026 says gross rent includes:

• rent for the premises;
• rent for furniture and fittings;
• maintenance and other fees the tenant pays under the tenancy agreement.

Rent received in 2025 is assessed in YA 2026, as IRAS's own worked example shows.

For a jointly owned home, the rent is taxed on all the owners according to their share in the property, whoever receives the rent and whoever paid for the home, IRAS says. If you rent out only part of your home, you apportion the allowable expenses by the number of rooms rented out.

Two ways to claim expenses

Sources: IRAS e-Tax guide, 30 Jan 2026; IRAS Quick Guide for e-Filers, YA 2026.

IRAS considers the 15% to be generally in line with common rental expenses such as property tax, maintenance fees and minor repairs, and the amount is pre-filled on the online tax form. The deemed option comes with conditions:

• It covers residential property only. A property that may be used, wholly or in part, for a non-residential purpose under the Planning Act, such as a childcare centre or a workers' dormitory, does not qualify.
• You must have incurred at least one deductible expense other than mortgage interest.
• It is not available for rent earned through a Singapore partnership or for property held in trust.
• In any one year, the same option applies to all your tenanted residential properties, though you can switch from one year to the next.
• Each co-owner of a jointly owned home chooses separately.
• If you claimed deemed expenses and want to switch to actual expenses after filing, you must tell IRAS within 30 days from the date of the Notice of Assessment.

Non-resident individuals can also use the deemed option, and so can owners renting out a room in an HDB flat, according to the guide's FAQ.

IRAS's worked example

IRAS illustrates the choice with a landlord, Mr X, who rented out his home for S$4,000 a month in 2025:

In this case the deemed option leaves S$200 less rent to be taxed, and Mr X needs no receipts for the S$7,200.

Illustration only, using IRAS's figures. Had Mr X spent S$10,000 on allowable costs other than interest, claiming actual expenses would have cut his net rent to S$28,500, which is S$2,800 less than under the deemed option.

What you cannot deduct

IRAS's page on income from property rented out lists these as not deductible against rent:

• the initial purchase of furniture and fittings, and their depreciation;
• initial repairs, and renovation, additions and alterations to the property;
• repayments of the loan principal;
• penalties for paying property tax late, and property tax brought forward from previous years.

Costs of securing a tenant are treated differently. From YA 2022, agent's commission, advertising, legal expenses and stamp duties to obtain, grant, renew or extend a lease are deductible for the first and later tenants. IRAS allows no deduction for a lease, renewal or extension with a term of more than three years (not counting any option to renew or extend), for a lease acquired, granted or transferred because a business is bought, sold or restructured, or for a lease where the property is sold and leased back to its seller. Costs of upkeep while a property sits vacant between leases are also deductible from YA 2022, if reasonable efforts were made to find a tenant.

If expenses exceed the rent, the rental loss cannot be offset against your other income, such as employment income, or carried forward. As an administrative concession, IRAS lets you offset the loss on one property against rent from another in the same year, provided all the properties were let at market rates.

What this means for Singapore landlords

Several of the costs IRAS does not allow come with the first letting. A landlord who furnishes and renovates a newly bought condo cannot deduct those outlays, though the agent's commission and legal fees for the first tenant are deductible if the lease is for three years or less.

After that, the choice is mostly about paperwork and repair bills. In a year with few repairs, the 15% deduction can match or beat actual costs without receipts for those costs, provided at least one deductible expense other than interest was incurred. In a year with major repairs, actual expenses may be worth the record-keeping, but that choice then applies to every home you rent out that year.

Couples should note the ownership rule. A home held 50:50 is taxed half on each owner, even if all the rent is paid into one account.

Education only — not tax, legal or investment advice. Confirm with a licensed professional.

What to do next

• Whichever option you choose, keep your bank's mortgage interest statements for at least five years to support the interest claim; keeping the tenancy agreement with them is good practice.
• If you may claim actual expenses, keep invoices for repairs, insurance and maintenance for five years.
• Before you file, compare your actual costs other than interest with 15% of your gross rent.
• Ask a verified property lawyer or finance professional to check your position: https://proprkey.com/en/pros?segment=legalFinance
• Find a verified property management team to handle repairs and keep the paperwork: https://proprkey.com/en/pros?segment=operations