Question 1

Is rental income taxable in Singapore?

Accepted Answer

Yes — rental income from Singapore property is taxable as part of your personal income. It is added to your other income (salary, dividends, etc.) and taxed at progressive rates of 0–22%. You can reduce your taxable rental income by deducting allowable expenses such as mortgage interest, property tax, agent fees, maintenance, and insurance. The net rental income (after deductions) is what gets taxed.

Question 2

What expenses can I deduct against rental income in Singapore?

Accepted Answer

IRAS allows deductions for: mortgage loan interest (not principal), property tax, fire/property insurance premiums, agent commission/tenancy fees, maintenance and repair costs, furniture depreciation (over useful life, typically 3–10 years), utility bills if paid by landlord, and other expenses 'wholly and exclusively' incurred to earn rental income. You cannot deduct: capital improvements (renovation adding new features), personal expenses, or mortgage principal repayments.

Question 3

Can I claim mortgage interest on my rental property?

Accepted Answer

Yes — the interest portion of your mortgage payment is deductible against rental income. Only the interest is deductible, not the principal repayment. If the property is jointly owned, each owner can only claim their proportional share of the interest. If the property was purchased partly for personal use and partly rented, you can only claim the proportion of interest relating to the rental period.

Question 4

What if my rental expenses exceed my rental income?

Accepted Answer

If your deductible expenses exceed rental income in a given year, you have a 'rental loss'. IRAS does not allow rental losses to offset other income (salary, trade income). However, the loss can be carried forward to offset future rental income from the same property. This means you cannot reduce your employment tax bill with rental losses — the tax shield only applies to future rental income.

Question 5

Do I need to declare rental income if I rent out a room?

Accepted Answer

Yes — rental income from room rentals is taxable. However, IRAS has an administrative concession: if you rent out a room in your own residence, you can claim a deemed rental expense of 15% of gross rent as a simplified deduction (in lieu of actual expenses). You still need to declare the gross rental income. Airbnb and short-term rentals: note that short-term rentals of HDB flats under 3 months are not allowed by HDB rules.

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