Rental Income Tax for Singapore Landlords 2026: Deductions and Filing Guide
Singapore landlord? Learn how rental income tax works in 2026, what expenses are deductible, how to avoid double-counting property tax, and what records to keep before filing.
Last reviewed: 14 Aug 2026
Renting out a Singapore property can look simple on paper:
monthly rent in, mortgage out, keep the difference.
But tax reporting is where many landlords get tripped up.
Rental income is taxable. Property tax is separate. Some expenses are deductible, some are not, and IRAS may pre-fill rental figures that still need to be checked by the taxpayer.
This 2026 guide explains how rental income tax works for Singapore landlords, what expenses can usually be claimed, when the 15% deemed expense option helps, and how to avoid confusing income tax with property tax.
Important: This is a general planning guide, not tax advice. Check your actual IRAS filing, tenancy facts, ownership share, and supporting documents before submitting your return.
Quick Answer
For Singapore landlords, rental income tax is charged on net rental income, not simply gross rent.
The basic flow is:
Gross rent and related payments - allowable rental expenses = net rental income
The net rental income is then assessed as part of your individual income tax, at the same progressive rates as your salary — see the income tax calculator and IRAS rate table.
In 2026, landlords should pay attention to five things:
- rental income includes rent and related payments received for the property;
- deductible expenses must generally be incurred to produce the rental income;
- residential landlords may use the 15% deemed rental expense option, plus mortgage interest;
- actual-expense claims require proper documents, generally kept for at least 5 years;
- property tax and rental income tax are different taxes.
The biggest practical rule:
Do not report only your "profit after mortgage instalment". Principal repayment is not the same as deductible mortgage interest.
Rental Income Tax vs Property Tax
Singapore landlords often mix up two separate taxes.
| Tax | What it is based on | Why landlords confuse it |
|---|---|---|
| Property tax | Property ownership and Annual Value | Payable even if the home is vacant or owner-occupied |
| Rental income tax | Income earned from renting out the property | Reported under individual income tax after allowable deductions |
IRAS explains that property tax is a tax on property ownership, while income tax is a tax on earnings, including rental income.
That means paying non-owner-occupier property tax does not mean your rental income has already been taxed.
For the property tax side, read our owner-occupied vs non-owner-occupied property tax guide.
What Counts As Rental Income?
Rental income is not only the base monthly rent.
IRAS treats rental income as the full amount of rent and related payments you receive from renting out the property. This can include:
- monthly rent;
- rent for furniture and fittings;
- service charges recovered from the tenant;
- insurance recoveries related to the rented property;
- taxable payments connected to subletting or room rental.
If you rent out only a room while living in the property, the room rent is still taxable. You then need to apportion allowable expenses correctly, instead of claiming the full property's expenses as if the whole home was rented out.
For HDB owners comparing whole-flat rental vs room rental, see rent out HDB after MOP: whole flat or room.
What Expenses Can Landlords Deduct?
The broad principle is that expenses must be incurred to produce the rental income and generally during the rental period.
Common deductible categories include:
| Expense | Usually deductible? | Key note |
|---|---|---|
| Mortgage interest | Yes, if the loan is for the rented property | Principal repayment is not deductible |
| Property tax | Yes, for the rented property and relevant period | Late-payment penalties are not deductible |
| Fire insurance | Usually yes | Keep policy and payment proof |
| Repairs | Yes, if restoring the property to original condition | Initial repairs and improvements are different |
| Maintenance | Usually yes | Must relate to the rented property |
| Agent fees and lease costs | Often yes for securing, renewing or extending a lease | Treatment can differ for first tenant vs subsequent tenant |
| Furniture replacement | Usually yes if replacing to original state | New improvements are not the same as replacement |
The exact treatment depends on facts. Keep invoices, receipts, tenancy agreements, mortgage statements and property tax notices.
What Is Not Deductible?
These are common landlord mistakes:
| Item | Why it is risky |
|---|---|
| Mortgage principal repayment | IRAS allows mortgage interest where conditions are met, not principal repayment |
| Initial repairs before first rental | These may not be treated the same as repairs during tenancy |
| Renovation or improvement works | Additions and upgrades are different from restoring original condition |
| Depreciation of furniture | Replacement treatment is not the same as depreciation |
| Personal accommodation costs | Your own rent or utilities cannot be used to reduce rental income from another property |
| Property tax penalties | Penalties for late or non-payment are not deductible |
The danger is not only overclaiming. It is also weak record-keeping. If IRAS asks for support later, the claim needs evidence.
The 15% Deemed Rental Expense Option
IRAS provides a simplified claim for individuals who rent out residential property.
Instead of claiming actual expenses, a landlord may use deemed rental expenses of 15% of gross rent. In addition to that 15%, the landlord may still claim mortgage interest on the loan taken to purchase the tenanted property, if applicable.
This option can be useful when:
- the property is residential;
- actual non-interest expenses are modest;
- the landlord wants simpler filing;
- records for smaller expenses are incomplete;
- the 15% deemed amount is higher than actual qualifying expenses excluding mortgage interest.
But it is not always better.
If your actual deductible expenses are higher than 15% of gross rent, the actual-expense method may produce lower taxable net rent.
Deemed Expenses vs Actual Expenses
Use this simple comparison.
| Method | What you claim | Record burden |
|---|---|---|
| 15% deemed expense method | 15% of gross rent plus mortgage interest, if applicable | Mortgage interest documents still needed; other rental expense records generally not needed for deemed claim |
| Actual expense method | Actual allowable expenses incurred | Supporting documents should be kept, generally for at least 5 years |
For residential properties, IRAS may pre-fill deemed rental expenses in the online tax form. You still need to check the gross rent, period, ownership share and expense choice.
If you have multiple tenanted residential properties, do not assume you can freely mix deemed expenses for one and actual expenses for another. IRAS says the treatment must be applied consistently when actual expenses are selected for any tenanted residential property.
Worked Example 1: Whole Condo Rented Out
Assume a landlord rents out a residential condo for the full year:
| Item | Amount |
|---|---|
| Gross rent | $60,000 |
| Mortgage interest | $12,000 |
| Other deductible expenses | $7,500 |
Option A: Deemed Expense Method
| Calculation | Amount |
|---|---|
| Gross rent | $60,000 |
| Less: 15% deemed expenses | $9,000 |
| Less: mortgage interest | $12,000 |
| Net rental income | $39,000 |
Option B: Actual Expense Method
| Calculation | Amount |
|---|---|
| Gross rent | $60,000 |
| Less: actual other deductible expenses | $7,500 |
| Less: mortgage interest | $12,000 |
| Net rental income | $40,500 |
In this simplified example, the deemed expense method gives lower taxable net rental income because 15% of gross rent is higher than the actual other deductible expenses.
Net rental income is added to your other income and taxed at your personal rates, so the cash difference depends on which bracket the rent pushes you into. Run both figures through the Singapore income tax calculator to see the actual tax payable rather than just the taxable amount.
Worked Example 2: Room Rental While Owner Lives There
Assume you live in a 4-room flat with 3 bedrooms and rent out 1 bedroom for the full year.
| Item | Amount |
|---|---|
| Room rent | $600 per month |
| Gross rent for year | $7,200 |
| Total deductible expenses for whole flat | $3,000 |
If claiming actual expenses, you generally need to apportion expenses based on the portion rented out. A simple room-count approach would allocate one-third of the relevant expenses:
| Calculation | Amount |
|---|---|
| Gross rent | $7,200 |
| Less: apportioned expenses | $1,000 |
| Net rental income | $6,200 |
If using the 15% deemed method:
| Calculation | Amount |
|---|---|
| Gross rent | $7,200 |
| Less: 15% deemed expenses | $1,080 |
| Net rental income before mortgage interest | $6,120 |
The better method depends on the actual numbers and whether mortgage interest is relevant.
What If The Property Is Vacant Between Tenants?
Vacancy periods can be confusing.
IRAS states that from Year of Assessment 2022, certain expenses such as repair, insurance, maintenance, upkeep and property tax incurred during a vacancy period may be deductible against rental income, provided reasonable efforts were made to find a new tenant during vacancy periods between leases.
This is not a blank cheque to claim personal holding costs forever.
Landlords should keep evidence such as:
- listing screenshots;
- agent appointment records;
- viewing records;
- lease negotiations;
- repair invoices linked to making the property rentable again.
Co-Owners: Who Reports The Rent?
If a property is jointly owned, each co-owner should report rental income and related expenses in their own income tax return based on the ownership share.
Do not assume one co-owner's filing automatically settles the other co-owner's tax position.
IRAS also pre-fills some rental details based on prior filing records or e-Stamping records, but taxpayers remain responsible for correcting the numbers if the actual rent, rental period or ownership details are different.
Filing Checklist For Landlords
Before filing, prepare:
- tenancy agreement and renewal documents;
- gross rent received for the year;
- rental period if the property was not rented for the full year;
- ownership share for co-owned property;
- mortgage interest statement;
- property tax notices and payment records;
- MCST maintenance fee statements, if applicable;
- fire insurance records;
- repair and replacement invoices;
- agent commission and lease-related invoices;
- evidence of vacancy marketing, if claiming vacancy-period expenses.
Then decide:
- Are you using the 15% deemed expense method?
- Or are you claiming actual expenses?
- Have you separated mortgage interest from principal repayment?
- Have you removed non-deductible personal or capital items?
- Does the reported rent match what you actually received?
Common Mistakes
Mistake 1: Treating Property Tax As The Final Tax
Property tax and rental income tax are separate. Paying property tax does not remove the need to report taxable rental income.
Mistake 2: Deducting The Full Mortgage Instalment
Only mortgage interest may be deductible where conditions are met. The principal repayment portion is not a rental expense.
Mistake 3: Forgetting Room Rental Is Taxable
Subletting a room can still create taxable rental income, even if you continue living in the property.
Mistake 4: Ignoring Pre-Filled Errors
IRAS may pre-fill rental information, but the landlord must check and correct it if it does not match the actual rent or rental period.
Mistake 5: Mixing Methods Carelessly
The deemed expense method and actual expense method are not just labels. They change what you can claim and what records you need.
FAQ
Is Rental Income Taxed On Gross Rent Or Net Rent?
Rental income is assessed after deducting allowable rental expenses. The final net rental income is included in your income tax assessment.
Is Rental Income Tax The Same As Property Tax?
No. Property tax is based on property ownership and Annual Value. Rental income tax is income tax on earnings from renting out the property.
Can I Claim My Mortgage Payment?
You may claim mortgage interest where conditions are met. You cannot deduct the principal repayment portion.
Can I Claim 15% Deemed Expenses And Actual Expenses?
For the same residential property, you generally choose between deemed rental expenses and actual allowable expenses. The deemed method is 15% of gross rent, and mortgage interest may still be claimed separately if applicable.
Do I Need To Keep Receipts?
If you claim actual expenses, keep supporting documents such as tenancy agreements, mortgage statements, invoices and receipts. IRAS states these should generally be kept for at least 5 years for verification.
Bottom Line
Rental income tax is not difficult if you separate the buckets clearly:
- gross rent and related payments;
- allowable expenses;
- mortgage interest vs principal;
- property tax vs income tax;
- deemed expenses vs actual expenses;
- full-property rental vs room rental.
For most landlords, the best workflow is to calculate both the 15% deemed expense method and the actual-expense method before filing, then use the method that is correct and better supported by your records.
Official Sources
- IRAS - Income from property rented out
- IRAS - Tax residency and tax rates
- IRAS - Property tax rates and sample calculations
- IRAS - 2026 Property Tax Bill
