Additional Buyer's Stamp Duty (ABSD) in Singapore: A Clear Guide for RES Candidates

ABSD Rates and Rules: What the RES Exam Tests (2026)

ABSD shows up in almost every stamp duty question on the RES exam, usually as a joint-purchase trap or a remission edge case. The rate table is straightforward. The marks are lost on the details around mixed-profile purchases and the six-month remission window.

How ABSD stacks with BSD

ABSD stacks on top of BSD. You always calculate both and add them. There is no scenario where you pay one but not the other, unless a very specific legal relief applies.

The tax is calculated based on the purchase price or the market value of the property, whichever is higher.

Current ABSD rates

The exact rate depends entirely on the buyer's residency profile and the number of residential properties they already own at the time of purchase.

All rates and rules in this guide are based on Inland Revenue Authority of Singapore (IRAS) figures as of June 2026. Because cooling measures can be adjusted by the government, always verify the latest rates directly against IRAS sources before your exam or when advising clients.

Current ABSD rates by buyer profile

When ABSD applies

ABSD applies strictly to residential properties. It does not apply to commercial or industrial properties. The duty is triggered whenever a buyer acquires a residential property or a partial share in one. If a client buys over another person's share in a jointly owned property, ABSD is payable on the value of the share being transferred.

Properties held in trust also attract ABSD. Any transfer of residential property into a living trust is subject to the 65% rate upfront, though a refund may be applicable later if specific conditions are met.

Joint purchases and mixed profiles

When a couple purchases their first property together, the rules depend on their combined profile. If both are Singapore Citizens buying their first home, no ABSD is payable.

If multiple buyers are involved and they have different profiles, the highest applicable ABSD rate among all the co-buyers will apply to the entire purchase price.

Worked example 1: a straightforward purchase

Consider a Singapore Citizen purchasing their second residential property for $1,000,000.

First, calculate the BSD. For residential properties, the current BSD rates are tiered.

BSD rates for residential properties

1% × $180,000 = $1,800
2% × $180,000 = $3,600
3% × $640,000 = $19,200
Total BSD = $24,600

Next, calculate the ABSD. A Singapore Citizen buying a second property faces a 20% ABSD rate.

20% × $1,000,000 = $200,000

Finally, combine the two. The total stamp duty payable is $24,600 plus

200,000,which equals to $ 224,600. This step-by-step method is exactly how you should lay out your workings in the exam to avoid careless errors.

Worked example 2: a trickier scenario

Now consider a mixed-profile couple purchasing a condominium for $2,000,000. The husband is a Singapore Citizen buying his first property, and the wife is a Foreigner buying her first property. They are purchasing the property jointly.

First, calculate the BSD using the residential tiers.

1% × $180,000 = $1,800
2% × $180,000 = $3,600
3% × $640,000 = $19,200
4% × $500,000 = $20,000
5% × $500,000 = $25,000
Total BSD = $69,600

Next, calculate the ABSD. IRAS mandates that the highest applicable rate among the buyers applies to the entire purchase price. The Singapore Citizen rate for a first property is 0%, but the Foreigner rate is 60%. Therefore, the 60% rate applies to the full $2,000,000.

60% × $2,000,000 = $1,200,000

The total stamp duty payable upfront is $69,600 plus

1,200,000 ,which equals to $1,269,600. The law requires the highest rate to be applied to the total property value, regardless of ownership shares.

Remissions and reliefs

There are specific scenarios where buyers can apply for ABSD remission. The most common is the married couple remission.

If a married couple includes at least one Singapore Citizen and they are purchasing their first residential property together, they can apply for full ABSD remission. If they are purchasing a second property, they may claim a refund on the ABSD paid if they sell their first property within six months of the new purchase.

Always check current IRAS rules for the exact eligibility criteria and timelines. These conditions are strictly enforced, and extensions to the six-month timeline are generally not granted.

Where candidates go wrong

1. Assuming ABSD replaces BSD. You must always calculate both and add them together.

2. Miscalculating joint purchases. Candidates sometimes try to average the rates or apply different rates to different shares of the property. The rule is strict: the single highest profile rate applies to the entire property value.

3. Forgetting that entities and trusts attract the highest rates. Unless the entity is a housing developer qualifying for upfront remission, the flat 65% rate applies.

4. Miscounting the number of properties owned. A property owned anywhere in the world does not count for ABSD purposes; IRAS only counts residential properties owned in Singapore. However, even a fractional share in a Singapore residential property counts as one property owned.

Practise this on ConfirmPass

If you want to test yourself on stamp duty calculations, ConfirmPass has a free set of exam-style scenarios covering different buyer profiles. Jump into the practice questions here to secure your marks.

Sources

1. IRAS: Additional Buyer's Stamp Duty (ABSD)

2. IRAS: Buyer's Stamp Duty (BSD)

3. IRAS: Remission of ABSD for a Married Couple

Disclaimer: Stamp duty rates and property cooling measures are subject to change by the Singapore Government. Always verify the latest figures and eligibility criteria directly with IRAS or the relevant authorities before making any property transaction or sitting for your RES examination.