Free Singapore rental income deduction calculator. Compute net rental income after deductible expenses including mortgage interest (investment property), property tax, maintenance, and agent commissions.
Net taxable rental income after allowable deductions.
Net taxable rental income
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Gross rental income
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Monthly net rental
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What rental income is taxable in Singapore
All rental income received in Singapore is taxable as personal income at the resident progressive rate. This includes rent from HDB flats rented under the approved subletting scheme, private residential properties, commercial properties, and even land or parking spaces rented out. The gross rent received each year forms your rental income, to which you can then apply deductible expenses. The difference is the net rental income that goes into your total chargeable income alongside salary, dividends, and other assessable income for the year.
The mortgage interest deduction and its limits
Mortgage interest is one of the larger deductible expenses for property owners with a loan, but it comes with an important condition: the interest is only deductible for periods when the property was earning rental income. If you acquired a rental property mid-year, interest before your first tenant moved in is not deductible. If the property was vacant between tenancies, the interest during the vacancy is not deductible. IRAS may also look at whether the loan proceeds were genuinely used to acquire or improve the rental property rather than for personal purposes, and will disallow interest on any portion of the borrowing that was not used for the rental asset. Keep loan statements and tenancy agreements to support your claims.
Alternative deduction method: 15 percent deemed expenses
IRAS offers a simpler alternative: instead of claiming actual expenses, you can elect to deduct a flat 15 percent of gross rental income as a deemed expense for maintenance and other costs. You can then separately add actual mortgage interest and property tax on top of this 15 percent flat rate. This is useful when your actual expenses other than mortgage interest and property tax are around 15 percent or less of rental income, as it saves you the record-keeping burden for those items. You cannot claim both the deemed 15 percent and the actual maintenance, insurance, and agent costs in the same year. This calculator shows actual expenses but you should compare the two methods if your actual non-interest non-tax expenses are uncertain.
Frequently asked questions
Can I deduct mortgage interest on my rental property in Singapore?
Yes, mortgage interest is deductible against rental income for investment properties that are rented out. The key rule is that you can only deduct interest for the period the property was tenanted and earning rental income. If the property was vacant for part of the year, only the proportionate interest for the tenanted period is deductible. Importantly, mortgage interest is not deductible for your primary residence or for any property used for private purposes, only for properties that generate rental income.
Is property tax on a rental property deductible?
Yes. Property tax paid on a rental property is a deductible expense against rental income under IRAS rules. Note that for investment properties the property tax rate is higher than for owner-occupied properties. Non-owner-occupied residential properties are taxed on a progressive scale starting at 12 percent and rising to 36 percent on the annual value above $90,000 for the 2024 and 2025 property tax year. The full property tax paid is deductible regardless of the rate.
Are renovation costs deductible against rental income?
Renovation and improvement costs to a rental property are generally not deductible as expenses because they are capital in nature, improving the property beyond its original state. However, repair and maintenance costs to restore the property to its original working condition are deductible. The distinction is between repairs (deductible) and improvements (not deductible). Repainting a wall to the same colour is a repair. Adding a new kitchen island is an improvement. In practice IRAS may need to be satisfied by documentation that work claimed as repairs was truly restorative rather than enhancement.
What happens if my rental expenses exceed my rental income?
If your allowable deductions exceed your gross rental income, you incur a rental loss. Under the Singapore Income Tax Act, rental losses can be offset against other income in the same year of assessment. If you have insufficient other income to absorb the loss, the excess can be carried forward to future years. This carry-forward is indefinite, but the loss is ring-fenced to rental income: you can only use a rental loss against rental income in future years, not against salary or business income once the initial year of loss has been used up.