What is Buyer's Stamp Duty (BSD) and how is it calculated?

Buyer's Stamp Duty (BSD) is a tax imposed by the Inland Revenue Authority of Singapore (IRAS) on the purchase or acquisition of any property in Singapore. BSD applies to all property transactions regardless of the buyer's residency status or the number of properties owned.

BSD is calculated on a progressive scale based on the higher of the purchase price or the market value of the property. The current BSD rates for residential properties, effective from 15 February 2023, are as follows: the first S$180,000 is taxed at 1%, the next S$180,000 (up to S$360,000) at 2%, the next S$640,000 (up to S$1,000,000) at 3%, the next S$500,000 (up to S$1,500,000) at 4%, the next S$1,500,000 (up to S$3,000,000) at 5%, and any amount exceeding S$3,000,000 at 6%.

For example, on a property valued at S$1,200,000, the BSD calculation would be: S$1,800 (1% of S$180,000) plus S$3,600 (2% of S$180,000) plus S$19,200 (3% of S$640,000) plus S$8,000 (4% of S$200,000), totalling S$32,600.

BSD must be paid within 14 days of signing the Sales and Purchase Agreement for a completed property, or within 14 days of exercising the Option to Purchase. For properties purchased directly from developers, BSD is payable within 14 days of the date the agreement is signed.

For completed or resale properties, BSD must generally be paid in cash first, after which buyers may apply for reimbursement from their CPF Ordinary Account. For uncompleted properties such as BTO flats, CPF may be used to pay BSD directly. Many buyers plan for this reimbursement to preserve their cash reserves.

It is important to budget for BSD as part of your total acquisition cost. On higher-value properties, the stamp duty bill can be substantial - for instance, a S$3,000,000 property would incur S$104,600 in BSD alone - and should be factored into your overall financial planning before committing to a purchase.