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Every Deductible Expense Singapore Landlords Can Claim

Letto Team·February 13, 2026·7 min read

Every Deductible Expense Singapore Landlords Can Claim

If you own rental property in Singapore, you already know that rental income is taxable. What many landlords get wrong is which expenses they can — and cannot — deduct from that income before calculating tax. Getting this right can save you thousands of dollars every year.

The basic formula is straightforward:

Taxable Rental Income = Gross Rent − Allowable Expenses

The challenge is knowing exactly what falls into "allowable expenses." Here is the complete list, based on IRAS guidelines.

What Counts as Gross Rent

Before deducting anything, you need to know what IRAS considers your gross rental income. It includes more than just the monthly rent:

  • Monthly rent received during the calendar year
  • Advance rental — taxable in the year you receive it
  • Forfeited security deposits — if a tenant forfeits their deposit, it becomes taxable income
  • Maintenance fees charged to the tenant
  • Furniture and fittings charges if billed separately

Security deposits that are returned to the tenant at the end of the lease are not taxable. They only become income if forfeited.

Expenses You Can Deduct

These expenses are deductible against your rental income, provided they were incurred during the rental period and solely for the purpose of producing rental income.

Property Tax

The property tax you pay on the rental property is deductible. Note that this refers to the annual property tax based on the Annual Value (AV) of the property — not income tax.

Mortgage Interest

Only the interest portion of your mortgage repayment is deductible. The principal repayment is not. Your bank statement should break these down separately. If you are using the property partly for personal use, only the proportion of interest attributable to the rental period is deductible.

Maintenance and Repairs

Day-to-day upkeep costs are deductible. This includes:

  • Aircon servicing and minor repairs
  • Plumbing fixes
  • Electrical repairs
  • Repainting
  • Pest control
  • General cleaning between tenants

The key word here is repairs — restoring the property to its original condition. This is different from improvements, which are not deductible.

Agent Commissions

Fees paid to property agents for finding tenants are deductible. This includes commissions for securing the tenancy agreement and any fees for tenant screening.

Fire and Property Insurance

Premiums for fire insurance and other property insurance policies covering the rental property are deductible during the rental period.

Utilities

If your rental agreement states that the landlord covers utilities (water, electricity, gas, internet), these costs are deductible. If the tenant pays their own utilities directly, there is nothing to deduct.

Property Management Fees

Fees paid to a property management company or condo management corporation (MCST fees) for managing the rental property are deductible.

Expenses You Cannot Deduct

These are the most common mistakes landlords make when filing their taxes.

Renovations and Capital Improvements

Any expenditure that improves the property beyond its original condition is considered capital in nature and is not deductible. Examples include:

  • Kitchen or bathroom renovations
  • Adding built-in wardrobes
  • Installing new flooring
  • Upgrading the electrical system
  • Structural modifications

IRAS draws a clear line: if the work restores the property to its previous state, it is a repair (deductible). If it enhances or upgrades the property, it is a capital improvement (not deductible).

Loan Principal Repayments

Only interest is deductible. The portion of your monthly mortgage payment that goes toward repaying the loan itself is not an expense — it is repaying borrowed capital.

Personal-Use Period Expenses

If you use the property for personal purposes during part of the year and rent it out for the rest, expenses must be prorated. You can only deduct the portion attributable to the rental period.

Furniture and Fittings (Full Cost)

You cannot deduct the full purchase price of furniture and fittings in the year you buy them. These items must be depreciated over their useful life. However, the annual wear-and-tear allowance on these items is deductible.

Expenses Without Receipts

If you are claiming actual expenses (rather than the 15% deemed expense option), you need documentary proof. No receipt means no deduction.

The Grey Areas

Some expenses sit in a grey zone between repair and improvement. Here are common scenarios:

Replacing an aircon unit — If you are replacing a broken unit with an equivalent model, it is generally treated as a repair (deductible). If you are upgrading to a more expensive system, the excess cost over a like-for-like replacement may be treated as capital expenditure.

Repainting — Repainting walls in the same colour is a repair. Repainting as part of a larger renovation project may be classified differently.

Replacing worn flooring — Replacing damaged tiles with similar tiles is a repair. Upgrading from vinyl to marble is a capital improvement.

When in doubt, keep detailed records of what was replaced and why. IRAS looks at whether the expenditure restores the property to its original state or enhances it.

Vacancy Period Expenses: The YA 2022 Rule Change

Before Year of Assessment 2022, expenses incurred during vacancy periods between tenants were generally not deductible. This changed significantly.

From YA 2022 onwards, landlords can deduct the following expenses incurred during vacancy periods between leases:

  • Repairs, maintenance, and upkeep costs
  • Property insurance premiums
  • Property tax

The critical condition is that you must have made reasonable efforts to find a new tenant during the vacancy period. This means listing the property with agents, advertising on property portals, or other demonstrable tenant-search activities.

This is an important change for landlords who experience gaps between tenancies. Keep evidence of your tenant-search efforts (agent appointments, listing screenshots, portal receipts) in case IRAS asks for proof.

Forfeited Deposits: A Two-Way Street

When a tenant forfeits their security deposit, that amount becomes part of your taxable gross rent. However, if the forfeiture was due to damage to the property, the cost of repairing that damage is deductible.

For example, if a tenant forfeits a $6,000 deposit due to damage, and you spend $4,500 on repairs, the net taxable amount from the forfeiture is effectively $1,500 (after deducting the repair costs as an allowable expense).

Keeping It All Organised

If you choose to claim actual expenses instead of the 15% deemed expense option, IRAS requires you to keep all supporting documents for at least 5 years from the relevant Year of Assessment. This includes:

  • Tenancy agreements
  • Bank mortgage statements showing interest breakdowns
  • Invoices and receipts for all claimed expenses
  • Agent commission receipts
  • Insurance policy documents
  • Property tax notices

For landlords managing multiple properties, this can add up to hundreds of documents per year. Having a system to capture and categorise receipts at the point they are incurred — rather than scrambling to find them at tax time — makes the difference between a smooth filing and a stressful one.

Key Takeaways

  • Deductible expenses include property tax, mortgage interest, repairs, agent fees, insurance, utilities, and management fees
  • Non-deductible expenses include renovations, loan principal, personal-use costs, and furniture at full cost
  • Vacancy period expenses are now deductible from YA 2022, provided you made reasonable efforts to find a tenant
  • Forfeited deposits are taxable, but related repair costs are deductible
  • Keep all receipts and documentation for at least 5 years if claiming actual expenses