HDB · 2026
HDB resale levy Singapore 2026: how much, who pays, how to calculate
By Winfred Quek · 9-minute read · Last reviewed May 2026
Key takeaways
- Resale levy = $15,000–$50,000, based on the type of your first subsidised flat (not the one you are buying).
- Applies only when buying a second subsidised flat (BTO, DBSS, or EC) not resale HDB or private.
- SC and PR households that sold a subsidised flat or received a CPF Housing Grant are subject to the levy.
- CPF OA can pay the levy; any shortfall must be covered in cash.
- Common mistake: thinking the levy applies when upgrading to private condo it does not.
The HDB resale levy is one of the most misunderstood costs in the Singapore housing journey. Many families planning their upgrade path are caught off guard by a five-figure charge they didn't account for. This guide sets out exactly when the levy applies, how much it is, and how it interacts with your overall upgrade budget.
1. What the resale levy is and why it exists
When the Singapore government sells a new HDB flat (BTO or DBSS) or a new Executive Condominium (EC) at a subsidised price below open market value, it is providing a housing subsidy to that household. The resale levy exists to ensure that households do not receive a second full subsidy on a subsequent subsidised purchase without contributing back a portion of the first subsidy benefit.
In simple terms: the government subsidised your first flat; if you want another subsidised flat, you return a fixed quantum of that benefit as the resale levy. The levy amount is fixed by flat type it does not scale with your selling price or how much appreciation you enjoyed on the first flat.
The policy was revised in March 2006. Households that bought their first flat before March 2006 may be subject to different levy rules confirm with HDB directly if this applies to you.
2. Who pays the HDB resale levy?
You pay the resale levy if ALL of the following apply:
- You (or your spouse) previously bought a subsidised HDB flat (BTO, DBSS, EC) or received a CPF Housing Grant on an HDB resale flat.
- You sold or disposed of that first subsidised flat.
- You are now applying to buy a second subsidised flat: a new BTO, DBSS, or EC (during the HDB period, before it privatises).
Married couples are assessed as a household unit. If either spouse triggered a subsidy on their first flat, the levy applies to the household's next subsidised purchase.
3. Who does NOT pay the resale levy?
- Buying a resale HDB flat on the open market: No levy. The resale levy only applies to subsidised (new) flat purchases.
- Buying private property (condo, landed, EC after privatisation): No levy. The levy is exclusive to HDB subsidised housing.
- First-time buyers: No levy, because you have not yet received a first subsidy.
- Households whose first flat was purchased on the open resale market without any CPF Housing Grant: No subsidy was received, so no levy applies. Note: if you received an Additional CPF Housing Grant or Proximity Housing Grant on a resale flat, you are treated as having received a subsidy and the levy may apply.
4. The resale levy rate table (2026)
| First subsidised flat type sold | Resale levy payable |
|---|---|
| 2-room flat | S$15,000 |
| 3-room flat | S$30,000 |
| 4-room flat | S$40,000 |
| 5-room flat | S$45,000 |
| Executive flat | S$50,000 |
| DBSS flat | Same as equivalent HDB flat type |
| EC (privatised, where levy applicable) | S$55,000 |
Levy amounts are fixed by flat type of the first subsidised flat disposed. The flat type being purchased does not affect the levy quantum. Confirm current levy with HDB at the point of your flat selection appointment.
The levy is assessed based on the flat type of your first subsidised flat not the flat you are now buying. If you sold a 4-room BTO and are applying for a 3-room BTO, you still pay the 4-room levy of $40,000.
5. When exactly is the levy paid?
For a BTO purchase, the resale levy is paid at the time of the HDB flat selection appointment before you sign the Sales and Purchase Agreement. HDB will confirm the exact levy quantum at this appointment based on your records. Payment is made directly to HDB.
For EC purchases (within the HDB subsidised period), the levy is paid at the point of booking the EC unit from the developer, coordinated through HDB.
You must have sufficient CPF OA or cash to cover the levy at this point. It is not a deferred cost you cannot pay it from loan proceeds.
6. Can CPF be used to pay the resale levy?
Yes. CPF Ordinary Account (OA) savings can be used to pay the HDB resale levy directly. If your CPF OA balance is insufficient, the remainder must be paid in cash. You cannot use CPF Special Account or Retirement Account savings for this purpose.
This is a meaningful planning point: the resale levy directly reduces the CPF OA funds available for your new flat's downpayment and subsequent loan repayments. Factor this into your affordability assessment before committing to a BTO application.
7. Worked example: 4-room BTO seller buying a new 4-room BTO
| Item | Amount |
|---|---|
| Proceeds from selling 4-room BTO | S$650,000 |
| Outstanding HDB loan repaid | S$120,000 |
| CPF OA refund (principal + accrued interest) | S$180,000 |
| Net cash proceeds | S$350,000 |
| Resale levy payable (4-room) | S$40,000 (paid from CPF OA) |
| CPF OA available after levy | S$140,000 |
| New BTO price (indicative) | S$450,000 |
| Downpayment required (10% cash + 10% CPF/cash for HDB loan) | S$90,000 |
| Budget position | Manageable but levy directly reduced CPF OA by $40,000 |
Illustrative example only. Actual CPF refund amounts depend on CPF contributions made and accrued interest. Confirm all figures with HDB and CPF Board.
8. The resale levy and ABSD: they are different
These two charges are frequently confused. Here is the key distinction:
- Resale levy: Paid to HDB. Applies only when buying a second subsidised flat (BTO, DBSS, EC). Does not apply to private property purchases.
- ABSD (Additional Buyer's Stamp Duty): Paid to IRAS. Applies on any second or subsequent residential property purchase (including private condo), based on citizenship status. SC second property = 20% ABSD.
If you sell your HDB flat and upgrade to a private condo: ABSD at 20% (SC) applies on the condo purchase but no resale levy. If you sell your HDB flat and buy another BTO: resale levy applies but no ABSD on the BTO purchase itself (HDB flats are exempt from ABSD).
Understanding which charge applies to which purchase type is essential before you commit to any upgrade path.
9. Common misconceptions
Misconception 1: the resale levy applies when I upgrade to private
False. The resale levy only applies to a second subsidised HDB purchase. Buying a private condo does not trigger the levy regardless of your HDB history. Your upgrade to private will involve ABSD considerations, but not the resale levy.
Misconception 2: the levy is a percentage of my sale price
False. The levy is a fixed dollar amount based on flat type it does not scale with your transaction price. Whether you sold your 4-room flat for $500,000 or $750,000, the levy is the same $40,000.
Misconception 3: I can avoid the levy by receiving the subsidy only on my spouse's name
False. HDB assesses the household unit, not individuals. If either spouse in a married couple received a housing subsidy, the levy applies to the household's next subsidised purchase regardless of whose name the grant was in.
Misconception 4: the levy is applied on the flat I'm buying, not the one I sold
False. The levy quantum is determined by the flat type of the first subsidised flat you disposed of. The flat type you are purchasing now has no bearing on the levy amount.
10. Planning around the resale levy
If the resale levy materially impacts your upgrade budget, there are legitimate options to model:
- Buy resale HDB instead of BTO: No levy applies. You may however forego the new flat subsidy, and resale prices in mature estates can be higher.
- Upgrade directly to private condo: No levy. ABSD applies at 20% for SC second property, but some households find this more affordable than the levy-plus-BTO-queue combination.
- Plan CPF OA accordingly: If you know the levy quantum in advance, you can optimise your CPF voluntary contributions in the years before your second BTO application to ensure sufficient OA balance.
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Winfred Quek · CEA R073319H · Crestbrick Pte Ltd (L31010886H)
Frequently asked questions
What is the HDB resale levy and who has to pay it?
The resale levy is a charge payable to HDB when a household that received a housing subsidy on a first flat (BTO, DBSS, or EC) buys a second subsidised flat. It is not payable when buying a resale HDB on the open market or private property.
How much is the HDB resale levy in 2026?
The levy ranges from $15,000 for a 2-room flat to $50,000 for an Executive flat. It is based on the flat type of your first subsidised flat not the one you are buying now.
Can CPF be used to pay the HDB resale levy?
Yes. CPF Ordinary Account savings can be used. If your CPF OA balance is insufficient, the shortfall must be paid in cash. The levy reduces the CPF available for your new flat's downpayment, so plan accordingly.
Does the resale levy apply when upgrading to a private condo?
No. The resale levy only applies when buying a second subsidised flat (BTO, DBSS, or EC during the HDB period). Upgrading to a private condo is not a subsidised purchase and does not trigger the resale levy. ABSD may apply instead.
When exactly is the resale levy paid?
For BTO: at the HDB flat selection appointment, before signing the Sales and Purchase Agreement. For EC: at the point of unit booking, coordinated via HDB. The levy must be settled before you proceed it cannot be deferred.
Sources & references
- HDB: Resale Levy
- CPF Board: Using CPF to Buy a Home
- HDB: Flat and Grant Eligibility
- IRAS: Additional Buyer's Stamp Duty (ABSD)
Winfred Quek is an Associate Marketing Consultant at Crestbrick Pte Ltd (CEA L31010886H), advising Singapore upgraders, investors, and family offices. CEA R073319H. The information on this page is general and does not constitute financial, investment, or legal advice. Always confirm levy quantum with HDB directly before making any housing decision.
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