By MoneyBees
Work out the gross and net rental yield on a Singapore home you let out. Net yield takes off vacancy, property tax at the non-owner-occupied rates, maintenance, agent fees, insurance, repairs and mortgage interest. Then see the income tax on the rent, with IRAS's 15% deemed expenses or your actual costs.
On your property tax bill.
Spread over the lease.
After reliefs, to find the tax rate on the rent.
Gross yield
4.20%
$42,000 rent a year
Net yield
2.58%
after vacancy and costs
After interest and tax
0.75%
$7,509 a year
| A year | |
|---|---|
| Rent received | $38,500 |
| Property tax | -$6,000 |
| Maintenance, agent, insurance, repairs | -$6,650 |
| Mortgage interest, first 12 months | -$17,776 |
| Before tax | $8,074 |
| Income tax on the rent (actual costs) | -$565 |
| What you keep | $7,509 |
Taxable rent is $8,074 if you claim actual costs and $14,949 with 15% deemed expenses plus interest. You can pick either, so this uses your actual costs. On top of your other income it is taxed at up to 7%.
Loan principal is not a cost here, as it is not deductible and it builds your equity. Your monthly instalment is still higher than the interest shown.
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| Annual Value | Rate |
|---|---|
| First S$30,000 | 12% |
| Next S$15,000 | 20% |
| Next S$15,000 | 28% |
| Above S$60,000 | 36% |
IRAS rates for residential property not occupied by the owner, from 1 Jan 2024. The AV is IRAS's estimate of the market rent without furniture and maintenance, not the rent you actually get.
| Deductible | Not deductible |
|---|---|
| Mortgage interest | Loan principal repayments |
| Property tax during the tenancy | Late payment penalties on property tax |
| Fire insurance | Cost of initial repairs |
| Repairs and maintenance, MCST fees | Renovation, additions and alterations |
| Agent commission, advertising, legal fees and lease stamp duty, for leases of 3 years or less | Depreciation of furnishings |
Or claim 15% of gross rent plus mortgage interest, with no records of the other costs needed. Residential property only. Costs while the home is empty between leases count if you made reasonable efforts to find a tenant.
A S$1,000,000 condo lets for S$3,500 a month, S$42,000 a year: a gross yield of 4.2%. It sits empty for a month, so you collect S$38,500. Property tax on an AV of S$42,000 is S$6,000. With S$3,600 of MCST, S$1,750 of agent fees, S$300 of insurance and S$1,000 of repairs, costs come to S$12,650 and the net yield is 2.59%.
A S$600,000 loan at 3% over 25 years costs about S$17,776 in interest in the first year, leaving S$8,074. Actual costs beat the 15% deemed claim, so S$8,074 is taxable. On top of S$60,000 of other income, that is S$565 of tax at 7%. You keep S$7,509, or 0.75% of the price.
Figures checked 3 Oct 2026.
Gross yield is a year's rent divided by the price. Net yield takes off what owning a let home costs you: empty months, property tax, maintenance or MCST fees, agent fees, insurance and repairs. Net yield is the one that tells you what the home earns.
Non-owner-occupied rates apply: 12% on the first S$30,000 of Annual Value, 20% on the next S$15,000, 28% on the next S$15,000 and 36% above S$60,000, from 1 Jan 2024. An AV of S$42,000 means S$6,000 of property tax.
Not always. IRAS sets the AV from market rents of similar homes, without furniture and maintenance, so it can be higher or lower than the rent you actually get.
Mortgage interest, property tax, fire insurance, repairs and maintenance, MCST fees, and the agent commission, advertising, legal fees and stamp duty to find or renew a tenant on a lease of 3 years or less. Loan principal, renovation and initial repairs are not deductible.
For residential property, IRAS lets you claim 15% of gross rent in place of your actual costs, plus your actual mortgage interest. You do not need records of the other costs. IRAS's example: S$60,000 rent less S$12,000 interest and S$9,000 deemed expenses leaves S$39,000 taxable.
No. IRAS does not let rental losses be set off against employment or other income, or carried forward. A loss on one let property can offset rent from another in the same year if all are let at market rates.
From YA 2022, costs and property tax during a vacancy between leases are deductible if you made reasonable efforts to find a new tenant. Interest before the first tenancy starts is not.
There is no official benchmark. Compare the net yield after interest and tax with what the same cash would earn elsewhere, such as T-bills or fixed deposits, and with the risk of a long vacancy.
These calculators provide general estimates for educational purposes only and are not personalised financial advice. Results may rely on rates and rules that change over time, so verify against official sources (IRAS, CPF Board, HDB, MAS) or consult a licensed financial adviser before making decisions.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).