Sellers · 2026

HDB resale levy: what second time buyers must pay

By Winfred Quek · 7 minute read · Last reviewed 27 Aug 2026

Quick answer: The HDB resale levy is a flat fee of SGD 3,000 to SGD 4,000 (depending on flat type and selling price) that second time HDB buyers pay when they sell or buy a resale flat. First time buyers pay no levy. The levy applies to the seller, not the buyer, and is paid at completion when HDB registers the transfer. It is a separate cost from Buyer's Stamp Duty (BSD) and does not affect the loan quantum.

HDB resale levy is a flat fee set by HDB. Amounts vary by unit type. As at 27 Aug 2026, the levies are SGD 3,000 to SGD 4,000.

Facts verified: Aug 2026 · Sources linked below

Key Takeaways

The HDB resale levy is a flat fee, not a percentage. Second time buyers pay SGD 3,000 to SGD 4,000 depending on flat type.
First time buyers of HDB resale flats pay NO resale levy. The levy applies only to sellers and buyers who have already owned an HDB flat.
The levy is paid by the seller at completion. For buyers, it is a fixed cost that is separate from the BSD and does not affect the loan quantum.
The levy is non-refundable and applies even if the property is later sold within the 5 year Minimum Occupation Period (though the MOP is enforced separately).
The resale levy is distinct from the HDB housing grant and the MSR (Mortgage Servicing Ratio). It is a one time sales transaction fee.

The HDB resale levy is a small but real cost that most second time buyers overlook because the amount is fixed and modest. At SGD 3,000 to SGD 4,000, it is dwarfed by BSD and legal fees, but it is an absolute cost that must be budgeted. Sellers often forget to set aside the levy when calculating their net proceeds, so clarity before listing is essential.

What is the HDB resale levy?

The HDB resale levy is a flat fee charged by the Housing Development Board when a second time buyer sells or purchases a resale HDB flat. The fee is fixed by HDB and does not vary based on the sale price or the buyer's income. The levy is intended to recover costs associated with processing the transaction and regulating the resale market.

The levy applies to:

Sellers who have previously owned an HDB flat and are selling a resale flat (regardless of whether they are buying another HDB flat or private property).
Buyers who have previously owned an HDB flat and are buying another resale HDB flat.

The levy does NOT apply to:

First time HDB buyers purchasing a resale flat for the first time.
BTO (Build-To-Order) owners who are exercising their first BTO flat (BTO is excluded).
Private property transactions (the levy is HDB specific).

How much is the resale levy?

According to HDB, the resale levy amounts are:

Flat Type	Resale Levy
2 room and Flexi flats	SGD 3,000
3 room flats	SGD 3,000
4 room and 5 room flats	SGD 4,000
Executive flats (multi gen)	SGD 4,000

HDB resale levy as at 27 Aug 2026. Rates are set by HDB and updated periodically.

The levy is paid at the time of completion when HDB registers the new ownership. It is deducted from the seller's proceeds or added to the buyer's costs depending on who is responsible. Typically, the seller bears the cost, but this should be clarified in the Option to Purchase (OTP) agreement.

Who pays the levy?

The levy is typically paid by the seller at completion. However, the responsibility can be negotiated between buyer and seller as part of the purchase negotiation. If not explicitly agreed in the OTP, the default is often that the seller pays.

For buyers, if you agree to cover the levy as part of your offer, this is additional cash you must set aside for completion. For sellers, the levy reduces your net sale proceeds and should be factored into your expected cash amount at completion.

How is the levy calculated?

The levy is not calculated—it is a flat fee. The amount depends only on the flat type, not the sale price. A SGD 400,000 4 room flat and a SGD 600,000 4 room flat both carry a SGD 4,000 levy. The levy is the same regardless of how long you have owned the flat or your profit margin.

Example: If you bought a 4 room flat for SGD 500,000 and are selling it for SGD 650,000, your levies and costs are:

Sale price: SGD 650,000
Buyer's Stamp Duty (BSD): Approximately SGD 13,000 (2% rate for HDB resale)
HDB Resale Levy (seller): SGD 4,000
Legal fees: Approximately SGD 2,500
Net proceeds to seller: Approximately SGD 630,500

Is the resale levy waivable?

No. The HDB resale levy is a mandatory, non-waivable fee set by HDB. It cannot be waived, deferred, or negotiated. If you are a second time HDB buyer or seller, you pay the levy. There are no exemptions or special circumstances.

The levy applies even if you are buying or selling during a time of financial hardship, or if the property is underperforming. It is an absolute cost.

Winfred's Take

Second time HDB buyers are often surprised by the levy because it is small and forgotten. But every dollar counts in the completion cost, and sellers often underestimate their net proceeds because they forget to subtract it. When you are negotiating with a seller on a 4 room flat, the levy is SGD 4,000. That is a real number that must come out of their pocket. For buyers, make sure you budget for it in your cash needs at completion.

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Winfred Quek · CEA R073319H · Crestbrick Pte Ltd

Frequently asked questions

Do first time HDB buyers pay the resale levy?

No. First time HDB buyers purchasing a resale flat for the first time pay no resale levy. The levy applies only to sellers who have previously owned an HDB flat and to buyers who have already owned an HDB flat. If you are buying your first HDB resale flat, you are exempt from the levy.

What if I sell my first HDB flat and then buy a private property? Do I pay the levy?

Yes. If you have previously owned an HDB flat, you are considered a second time buyer for levy purposes, even if you are not buying another HDB property. The levy is charged when selling the HDB flat, not when buying the next property. You pay the levy on the sale of your first HDB flat if you are a second time HDB buyer selling.

Can the buyer and seller split the resale levy cost?

Yes. The levy cost can be negotiated between buyer and seller as part of the purchase agreement. It is typically written into the OTP (Option to Purchase) document. Common arrangements are: (a) seller pays the full levy, (b) buyer pays the full levy, or (c) they split it. This is a negotiable point, not a fixed rule.

Does the resale levy reduce the property's loan quantum?

No. The levy does not affect the bank's valuation of the property or the loan amount. The loan is based on the property valuation and your TDSR. The levy is a separate transaction cost that comes out of either the seller's proceeds or the buyer's cash, but it does not change the loan quantum.

Sources & References

Winfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA Licence No. L31010886H), CEA Registration No. R073319H. The information on this page is general in nature and does not constitute financial, legal, or investment advice. As at 27 Aug 2026. Always confirm current levy amounts with HDB before completing your transaction.

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