The 0.4% lease-duty rate is not always applied to rent over the entire tenancy. Four years is the key boundary, and average annual rent, market rent, service charges and other consideration must be understood first.
Choose the basis from the lease term
Four years or less: 0.4% of total rent over the lease.
More than four years or an indefinite term: 0.4% of four times average annual rent (AAR).
An AAR not exceeding SGD 1,000 is exempt. Duty is rounded down to the nearest dollar, with a minimum of SGD 1 when duty applies.
SGD 3,000 monthly rent over one, two and five years
| Lease term | Rent basis used | Estimated duty |
|---|---|---|
| 1 year | SGD 3,000 × 12 | SGD 144 |
| 2 years | SGD 3,000 × 24 | SGD 288 |
| 5 years | SGD 3,000 × 12 × 4 | SGD 576 |
A five-year lease does not use all 60 months at 0.4%; it uses four times AAR. That is the long-lease mistake worth remembering.
Stepped rent needs each period, not the first month repeated
If rent is SGD 3,000 in year one, SGD 3,300 in year two and SGD 3,600 in year three, calculate total rent or AAR from each contractual period. Rent-free periods, fitting-out periods, furniture, maintenance, service and promotion charges can also affect consideration. IRAS states that AAR is the higher of average annual contractual rent or annualised market rent and excludes GST.
Editorial note: agree who will stamp before signing
Getting the amount right does not complete the obligation. Landlord and tenant should agree who submits the instrument, when it will be stamped and how the Stamp Certificate will be retained. Renewals, supplemental agreements and late stamping may need separate action.
Leases that need more than the basic calculator
- Commercial leases with rent linked to turnover.
- Minimum or maximum secured sums, stepped rent or complex service charges.
- Indefinite terms, renewals, subleases or mid-term rent changes.
Lease-duty questions
Is GST included in the rent basis?
IRAS's AAR description excludes GST, while furniture, maintenance, service and other consideration may be included. Read the agreement item by item.
Why is a five-year lease not monthly rent × 60 × 0.4%?
Once the lease exceeds four years, the basis changes to four times AAR rather than total rent for the full term.
Does SGD 288.80 become SGD 289?
Lease duty is rounded down to the nearest dollar, so the basic illustration shows SGD 288. Use the IRAS e-Stamping result for the official amount.
Calculate or read IRAS
Use the rental stamp duty calculator · IRAS lease-duty rates, consideration and examples
Written and reviewed by the QuickCalc editorial team. Last reviewed: 8 Sep 2026. Report a rule or calculation issue at w56975828@gmail.com.