See what renting out a Singapore property actually costs you in tax. On $36,000/year of rent with $10,000 mortgage interest and S$90,000 of other chargeable income, the 15% simplified method leaves about $23,631 after tax, an effective 11.5% on the net rental income. Enter your own numbers below.
Simplified expenses
15%
of gross rent, no receipts
Mortgage interest
Separate
always claimed on top
Taxed at
Resident rates
same as employment income
Basis
2026 YA
IRAS progressive bands
Assumes Singapore tax residency. Rental income is taxed alongside your other chargeable income at IRAS resident progressive rates. Non-resident individuals are taxed differently.
Net rental income after tax
$23,631
$2,369 additional tax owed from renting out this property, an effective 11.5% on $20,600 of net rental income.
Breakdown
| Gross annual rental income | $36,000 |
| Non-interest expenses claimed (15% simplified) | $5,400 |
| Mortgage interest claimed | $10,000 |
| Net rental income (added to chargeable income) | $20,600 |
| Tax without this rental income | $4,500 |
| Tax with this rental income | $6,869 |
| Additional tax from renting out | $2,369 |
Mortgage interest is always claimed separately from, and on top of, either the 15% simplified deduction or your actual non-interest expenses, since it is never part of either figure. Only the interest portion of a loan used to purchase the property qualifies, not principal repayments. This calculator assumes Singapore tax residency and applies IRAS resident progressive rates to your total chargeable income. Confirm your own figures with IRAS or a tax adviser before filing.
Singapore doesn't have a separate tax on rental income. Instead, your net rental income (rent received, minus allowable expenses) simply gets added to your other chargeable income for the year and taxed at the same resident progressive rates that apply to your salary. That means the real tax cost of renting out a property depends heavily on what tax bracket your other income already puts you in.
For non-interest expenses, IRAS gives landlords a choice: claim a flat 15% of gross rental income with no paperwork, or add up your actual property tax, fire insurance, repairs, maintenance, and agent's commission if that total is higher. Mortgage interest sits outside both methods entirely, it's always claimed separately, on top of whichever non-interest method you choose, and only the interest portion of the loan counts, never the principal you're repaying.
Because rental income stacks on top of your existing income rather than being taxed on its own, the marginal cost of a rental property can be higher than its standalone tax rate suggests, especially if it pushes part of your income into a higher bracket. This calculator computes that bracket-crossing effect directly rather than applying a single flat rate.
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Rental income is added to your other chargeable income (like your salary) and taxed at IRAS's resident progressive tax rates, the same bands used for employment income, for individuals who are Singapore tax residents. It isn't taxed separately at a flat rate the way it is in some other countries.
Since Year of Assessment 2016, IRAS lets residential landlords claim a flat 15% of gross rental income as deemed non-interest expenses, covering property tax, fire insurance, repairs and maintenance, agent's commission, and advertising for tenants, without needing to keep receipts. If your actual non-interest expenses are higher than 15% of rent, claiming the actual figure instead usually leaves you with more after-tax income.
Yes. Mortgage interest is always claimed separately, on top of whichever non-interest expense method you use. It is never included in the 15% deemed figure or in your actual-expenses total. Only the interest portion of a loan used to buy the property qualifies; principal repayments never do.
Use whichever leaves you with lower net rental income after deductions. If your actual property tax, insurance, repairs, and agent fees add up to more than 15% of your gross rent, claiming actual expenses usually wins. If they're lower, the simplified method is both simpler and better. This calculator shows both outcomes side by side using your own numbers.
If you're a Singapore tax resident (broadly, present or working in Singapore for 183 or more days in the calendar year), your rental income is taxed at the same resident progressive rates as citizens and PRs, which is what this calculator models. Non-resident individuals are taxed differently, generally at a flat rate on rental income, which this calculator does not cover.
It uses IRAS's Year of Assessment 2026 resident progressive tax bands and the current 15% simplified deemed expense rate. It assumes full Singapore tax residency, doesn't account for co-ownership splits, and treats mortgage interest as fully deductible without modelling any borrowing-cost caps. Confirm your own figures with IRAS or a tax adviser before filing.
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