Shaun Koh, 45, is a single operations manager who owns his HDB flat. He has $900,000 invested and plans to stop work at 51. After a showflat visit, he is weighing a $1.2 million condominium to rent out while he keeps the flat.
According to the Inland Revenue Authority of Singapore (IRAS), a Singapore Citizen pays Additional Buyer's Stamp Duty (ABSD) of 20% on a second residential property and 30% on a third or later one. ABSD is charged on top of Buyer's Stamp Duty, and both are due within 14 days of the purchase.
On the $1.2 million condominium, Shaun's duties come to $32,600 + $240,000 = $272,600. The sections below follow how he prices the duty, what it does to his stopping age, and whether any of it comes back.
Which ABSD Rate Would He Pay?
The rates below have applied since 27 April 2023, according to the IRAS page on ABSD (checked 30 September 2026). ABSD is charged "on the higher of the purchase price or market value".
| Buyer | First property | Second property | Third and later |
|---|---|---|---|
| Singapore Citizen | None | 20% | 30% |
| Singapore Permanent Resident | 5% | 30% | 35% |
| Foreigner | 60% | 60% | 60% |
Source: IRAS
IRAS counts a property from the date the buyer accepts the option to purchase, and counts any share in a property, however small, as a whole property. Properties outside Singapore are not counted. When buyers of different profiles buy together, the highest applicable rate applies to the whole property. Shaun's HDB flat counts as his first property, so the condominium is charged 20%.
How Much Duty Is Due On $1.2 Million?
Buyer's Stamp Duty on residential property is 1% on the first $180,000, 2% on the next $180,000, 3% on the next $640,000, 4% on the next $500,000, 5% on the next $1,500,000 and 6% on the rest, according to IRAS (checked 30 September 2026). The table adds ABSD at the Singapore Citizen rates, and Shaun's purchase is the $1,200,000 row.
| Price | Buyer's Stamp Duty | Second property, total duty | Third property, total duty |
|---|---|---|---|
| $800,000 | $18,600 | $178,600 | $258,600 |
| $1,200,000 (Shaun) | $32,600 | $272,600 | $392,600 |
| $1,500,000 | $44,600 | $344,600 | $494,600 |
| $2,000,000 | $69,600 | $469,600 | $669,600 |
Source: IRAS
For his purchase, Buyer's Stamp Duty is $1,800 + $3,600 + $19,200 + $8,000 = $32,600. ABSD at 20% is $240,000, and at 30% it would be $360,000.
How Far Does The Duty Move His Stopping Age?
Shaun earns $9,000 a month and takes home $7,400 after $1,600 of employee CPF. He spends $5,000 a month, or $60,000 a year, and adds $2,400 a month to his investments. His CPF holds $150,000 in the Ordinary Account, $180,000 in the Special Account and $70,000 in MediSave.
His stopping age comes from a month-by-month walk through retirement to 90, in today's money, at a cautious return of 2.5% a year above inflation on investments. The table counts the duty alone, paid in cash from his invested sum. It leaves out the loan, the rent and the property's value.
| Duty paid on the $1.2 million purchase | Amount | Earliest stopping age | Later by |
|---|---|---|---|
| None | 51 | ||
| Buyer's Stamp Duty only | $32,600 | 52 | About 0.3 years |
| Second property, 20% ABSD | $272,600 | 55 | About 3.2 years |
| Third property, 30% ABSD | $392,600 | 56 | About 4.6 years |
Source: IRAS; illustrative figures
The $240,000 of ABSD on its own moves his date by about 2.8 years. It is paid to IRAS, and no later sale of the property returns it.
Read Also: How Many Years Does An HDB Resale Flat Add To Your FIRE Date?
Can He Pay The Duty From CPF?
According to the CPF Board (checked 30 September 2026), Ordinary Account savings can pay "Buyer's Stamp Duty and Additional Buyer's Stamp Duty". Buyers pay the duty in cash first and apply for a reimbursement once a CPF charge can be lodged on the property.
For a second property, the CPF Board lets members use only the Ordinary Account savings left after setting aside the Basic or Full Retirement Sum. Which sum applies depends on whether one of their properties has a lease that lasts to age 95. Shaun would still need $272,600 in cash within 14 days, and only part of his $150,000 Ordinary Account could later reimburse it.
Read Also: BRS, FRS And ERS: What CPF Members Can Withdraw At 55 In 2026
Would Any Of The ABSD Come Back?
IRAS refunds ABSD in a few cases, subject to conditions. Singapore Citizen married couples who buy a second home and sell their first within six months may be eligible for a refund. For a home under construction, the six months run from the date of its Temporary Occupation Permit (TOP) or Certificate of Statutory Completion (CSC), whichever is earlier. Single Singapore Citizens aged 55 and above who buy a second property on or after 16 February 2024 may also be eligible.
In both cases the ABSD is paid within 14 days and refunded later. Shaun is single, 45 and keeping his flat, so neither refund applies to him.
Read Also: Price A Second Property With Its Stamp Duty In Cashmere Pocket
What Did Shaun Decide?
Shaun does not buy the condominium. The $272,600 in duty would move his stopping age from 51 to 55, and none of the $240,000 of ABSD could be recovered.
For buyers who keep their first home, ABSD is usually the largest single cost of a second property after the price itself. Couples replacing a home within the refund window pay Buyer's Stamp Duty alone in the end, and the effect on any one plan depends on the price, the buyer's residency and the savings the duty is paid from.