Stamp duty on rental agreements in Singapore — what tenants need to pay

Most tenants don't realise they're legally required to stamp their tenancy agreement. Here's what you owe, how to calculate it, and what happens if you skip it.

Stamp duty is one of those costs that catches tenants off guard — partly because agents rarely bring it up, and partly because many tenants assume it's the landlord's responsibility. It isn't. Here's what you need to know before your tenancy agreement is signed.

1. What is stamp duty on a tenancy agreement?

Stamp duty is a tax levied by the Inland Revenue Authority of Singapore (IRAS) on legal documents that transfer or create rights — including tenancy agreements. When you sign a lease, the agreement must be stamped to be legally enforceable in court. An unstamped agreement can still be used as evidence, but only after the overdue duty (plus a penalty) is paid.

The duty is calculated on the annual rent value of the lease, not on the full contract value, and the rate depends on the lease duration.

2. Who pays — the landlord or the tenant?

By default under the Stamp Duties Act, the tenant is responsible for paying stamp duty on a tenancy agreement. In practice, some landlords absorb the cost or split it, especially in higher-end rentals where it's a negotiating point. But unless your tenancy agreement explicitly states otherwise, the obligation falls on you.

If you're unsure, check clause 1 or the "Stamp Duty" section of your agreement. If the clause is silent, assume you're paying.

3. How much is it?

IRAS uses a tiered rate based on the lease term:

Lease of 1 year or less: 0.4% of total rent for the period
Lease of 1–3 years: 0.4% of the average annual rent
Lease of more than 3 years: 0.4% of the average annual rent, multiplied by 4 (treated as a 4-year benchmark)

For a typical two-year lease at $4,000/month, the stamp duty is: 0.4% × $48,000 = $192. At $6,500/month it's $312. Not a large sum, but it's payable within 14 days of signing (for agreements signed in Singapore) or within 30 days (if signed overseas, as sometimes happens with expat relocations).

4. What happens if you don't stamp it?

Late stamping incurs a penalty. IRAS charges the higher of $10 or the unpaid duty, plus additional penalties for extended delays — up to four times the duty if stamped more than 12 months late. More practically, an unstamped agreement limits your legal recourse: if a dispute goes to the Small Claims Tribunal or court, you'll need to pay the overdue duty and penalty before the document can be admitted as evidence.

Stamping late is allowed. It just costs more.

5. How do you actually stamp the agreement?

IRAS handles this through their e-Stamping portal at mytax.iras.gov.sg. You'll need your Singpass, the signed tenancy agreement, and the relevant property details. Payment is by PayNow or GIRO. The whole process takes about ten minutes. Once stamped, you receive a Certificate of Stamp Duty — keep this for the duration of your tenancy.

Your property agent (if you used one) will sometimes handle stamping on your behalf, but they are not required to, and the legal obligation remains yours. If they offer to do it, confirm the timeline and ask for the certificate once it's done.

6. Is there any exemption?

The main exemption is for Housing Development Board (HDB) subletting agreements where the monthly rent is below a IRAS threshold (periodically updated). Most private condo leases do not qualify for exemption. Diplomatic or government-to-government leases may have specific arrangements, but for a standard private rental, stamp duty applies.

The bottom line

Stamp duty on a Singapore tenancy agreement is a small but mandatory cost — typically under $400 for most private rentals. The risk of ignoring it isn't the amount; it's losing the ability to enforce your agreement in a dispute. Stamp within 14 days, keep the certificate, and you're covered. If your agent offers to handle it, get confirmation in writing.