Can I offset rental property losses against salary income in Singapore?

No. In Singapore, rental losses under Section 10(1)(f) can only be offset against other rental income in the same year or carried forward to offset future rental income. You cannot offset rental losses against employment income, dividends, or business income -- unlike Australia's negative gearing system.

What property expenses can I deduct from rental income in Singapore?

IRAS allows deduction of: mortgage interest (not principal repayment), property tax, agent commission, maintenance and repair costs, and depreciation of furniture/fittings. You cannot deduct renovation costs, structural improvements (capital expenditure), or mortgage principal repayment.

Last reviewed: 19 May 2026

Running Singapore Property at a Rental Loss: What IRAS Actually Allows

By Winfred Quek · CEA R073319H · Crestbrick

Quick answer: Singapore has no formal negative gearing law. Under IRAS Section 10(1)(f), rental losses can only be offset against other rental income not salary, dividends, or business income. Losses carry forward indefinitely to future rental income. This is fundamentally different from Australia, where rental losses can reduce taxable employment income.

Facts verified: May 2026 · Sources linked below

How Singapore Taxes Rental Income

Rental income in Singapore is taxed under Section 10(1)(f) of the Income Tax Act. It is separate from employment income (Sec 10(1)(b)) and must be declared in your annual tax return. The net rental income (after allowable deductions) is added to your total assessable income and taxed at your marginal personal income tax rate.

Singapore personal income tax rates are progressive: 0% up to $20K, 2% on the next $10K, rising to 24% above $1M. For most landlords earning $120K–$300K combined income, marginal rate on rental income is 11.5%–17%.

What You Can and Cannot Deduct

Expense	Deductible?	Notes
Mortgage interest	Yes	Interest portion only NOT principal repayment
Property tax	Yes	Annual property tax payable to IRAS
Agent commission (leasing)	Yes	Half-month to 1-month fee per tenancy
Maintenance and repair	Yes	Must be for upkeep not improvements
Furniture depreciation	Yes	Based on asset useful life schedule
Insurance (fire/contents)	Yes	Rental property insurance
Renovation costs	No	Capital expenditure not revenue deduction
Structural improvements	No	Capital in nature
Mortgage principal	No	This is capital repayment, not expense
Depreciation of building	No	Unlike Australia, no building depreciation in SG

Rental Loss Example

Item	Monthly	Annual
Gross rental income	$2,500	$30,000
Less: Mortgage interest (on $900K loan at 1.6%)	−$1,200	−$14,400
Less: Property tax (10% AV ~$24K)	−$200	−$2,400
Less: Agent fee (half-month, amortised)	−$104	−$1,250
Less: Maintenance and repairs	−$100	−$1,200
Net rental income (loss)	−$104	−$1,250

In this scenario, you have a $1,250 rental loss for the year. Under IRAS rules:

If you have another rental property earning $5,000 net you can offset: net rental income = $5,000 − $1,250 = $3,750 taxable
If you have no other rental income the $1,250 loss is carried forward to future years when you do have rental income
You cannot deduct the $1,250 from your employment income

Loss Carry-Forward Rules

Rental losses under Sec 10(1)(f) can be carried forward indefinitely. There is no time limit you can accumulate rental losses over many years and offset them against future rental income when the property becomes profitable (e.g., after the loan is repaid and interest expense drops).

Importantly, if you sell the property, any unabsorbed rental loss carry-forward is lost you cannot use it against capital gain (Singapore has no capital gains tax anyway) or convert it into any other deduction.

The Singapore vs Australia Difference

	Singapore	Australia
Rental loss offset against salary	No	Yes (negative gearing)
Rental loss carry-forward	Yes, indefinitely	Yes
Building depreciation	No	Yes (capital works)
Capital gains tax on sale	No CGT	Yes (50% discount if held 1yr+)
Mortgage interest deductible	Yes (interest only)	Yes (interest only)

IRAS audit risk: Aggressive rental expense claims trigger IRAS review. Common red flags: high renovation costs claimed as repairs, personal expenses mixed into property maintenance, interest on personal loans (not secured by rental property) claimed as rental expense. Keep receipts and records for 5 years.

Tax Planning Implication

Because you cannot offset rental losses against employment income, the tax benefit of running a property at a loss in Singapore is limited compared to Australia. The primary financial benefit of a Singapore rental property loss is deferral you are building a loss carry-forward that will shelter future rental income once the property becomes cash flow positive (typically when the loan is substantially repaid or rental income rises).

How to Calculate Your Rental Income Tax: Step-by-Step

Step 1 Compute gross rental income. Total rent received in the calendar year, including any advance rent, security deposit retained (if forfeited), and any furniture allowance paid by tenant that exceeds actual cost.

Step 2 Identify all allowable deductions. Mortgage interest (not principal), property tax, agent commission, maintenance and repair costs, depreciation of furniture (based on cost / useful life), insurance. Keep receipts for all items.

Step 3 Calculate net rental income. Gross rent minus allowable deductions = net rental income (or loss). If positive, this is added to your total assessable income and taxed at your marginal rate.

Step 4 If a loss, track the carry-forward balance. Record the unabsorbed rental loss separately. It can only offset future rental income not salary or other income. Keep a running tally across years.

Step 5 Declare in Form B or Form B1. Report rental income under "Other income" in your IRAS tax return. Attach a rental income schedule showing all properties, gross rent, and deductions. IRAS may request supporting documents.

Rental Income Tax by Marginal Rate: Real Examples

Combined Annual Income (incl. rental)	Marginal Rate on Rental Income	Tax on $20K Net Rental Income	After-Tax Rental Income
$80,000 total	7%	$1,400	$18,600
$120,000 total	11.5%	$2,300	$17,700
$160,000 total	15%	$3,000	$17,000
$200,000 total	18%	$3,600	$16,400
$320,000 total	22%	$4,400	$15,600

Marginal rates are approximate based on YA 2026 tax bands. Actual tax depends on all deductions, reliefs, and rebates. High-income landlords should consider whether to hold rental property in a spouse's name if their marginal rate is significantly lower.

Common Mistakes Singapore Landlords Make on Tax

Claiming renovation costs as repairs. Renovation (capital expenditure) is not deductible. Repairs and maintenance (restoring to original condition) are deductible. Painting walls after a tenant leaves = deductible. Installing a new kitchen = capital expenditure, not deductible.
Deducting mortgage principal repayment. Only the interest portion of your loan instalment is deductible. Principal repayment is a capital item it is your own money repaying your own loan, not a business expense.
Forgetting to declare rental income for part-year tenancies. Even a single month of rental income must be declared. IRAS cross-references tenancy agreements and utility transfers. Under-declaration attracts penalties of up to 200% of tax undercharged.
Claiming deductions for a property used partly for personal use. If you occupy part of the property yourself and rent out the rest, deductions must be apportioned on a floor-area basis. You cannot claim 100% of the mortgage interest if you are living in one bedroom and renting the other.

Frequently Asked Questions

How long can I carry forward an unabsorbed rental loss in Singapore?

IRAS allows rental losses under Section 10(1)(f) to be carried forward indefinitely there is no time limit. You can accumulate losses over many years and use them against future rental income when the property eventually turns cash-flow positive. However, if you sell the property, any remaining unabsorbed loss is permanently extinguished it cannot be applied against the sale proceeds or any other income.

Can I deduct interest on a personal loan used to fund my rental property purchase?

Only if the loan is directly secured against the rental property or can be clearly traced to the property acquisition. A general personal loan (not secured against the property) used to fund part of the purchase is unlikely to be accepted by IRAS as a deductible interest expense. The loan must have a clear nexus to the income-producing asset.

What is the deemed rental income rule for HDB flats?

There is no deemed rental income rule for HDB flats in Singapore you are only taxed on actual rent received. Unlike some jurisdictions where owner-occupiers are taxed on imputed rental income, Singapore does not apply this concept. You pay property tax on the Annual Value (AV) regardless of whether you rent or occupy, but income tax on rental income only applies when rent is actually received.