Lease Duty Calculator Singapore 2026
Commercial, Industrial & Residential Leases — Premium Stamp Duty, GST-Exclusive Rent & Step-Up Rents
Calculate Singapore lease duty (stamp duty on lease agreements) for commercial, industrial, retail, and residential leases — including leases with premiums (key money), service charges, GST-registered landlord adjustments, step-up rents, and renewal option duty. Covers all three IRAS lease bands: Total Rent (≤1 year), 2× Average Annual Rent (1–3 years), and 4× Average Annual Rent (above 3 years). Premium/key-money stamp duty calculated separately at 0.4%.
The lease term determines which stamp duty formula applies. Key bands: ≤12 months (0.4% × Total Rent) • 13–36 months (0.4% × 2 × AAR) • 37+ months (0.4% × 4 × AAR). For JTC industrial leases (30-year standard term), the 4×AAR formula applies. Note: commercial leases are commonly structured as 3+3 or 3+3+3 — the initial 3-year term uses the 2×AAR formula; each renewal term is separately stamped.
For GST-registered landlords, the rental invoice shows rent + 9% GST. Stamp duty is calculated on the GST-exclusive rent only — not on the GST component. If your rent is S$11,000 inclusive of 9% GST, the stamp duty base = S$11,000 ÷ 1.09 = S$10,092. Select “Yes” and enter the GST-inclusive rent; the calculator deducts the 9% GST automatically.
For fixed rent over the full term, enter only the Year 1 rent. For step-up leases (e.g., S$8,000 for Year 1, S$8,400 for Years 2–3), the calculator computes the Average Annual Rent (AAR) across all tiers weighted by number of years. Service charges and maintenance fees are entered separately below — they are excluded from the stamp duty base.
Service charges, maintenance contributions, and building management fees stated separately in the lease are excluded from the stamp duty base. Enter the monthly service charge for reference — the calculator shows it as excluded in the results. Only the base rent (ex-GST if applicable) is used for stamp duty.
A premium (also called “key money” or “fit-out contribution repayment”) is a lump-sum payment made by the tenant to the landlord to secure the lease, over and above the regular monthly rent. Premiums attract additional stamp duty at 0.4% of the premium amount. Reverse premiums (landlord pays tenant) do not attract stamp duty on the premium itself.
When a tenant exercises an option to renew, a new stamp duty assessment applies on the renewal term. Calculate renewal stamp duty here for planning. In practice, renewal duty is paid when the renewal agreement is signed — not at the time of the initial lease.
Enter lease type, term, and rent to calculate lease duty. For step-up rents, enter up to 3 rent tiers — the calculator averages them to find the AAR. Add a premium for key-money stamp duty and a renewal option term for forward planning.
Lease Duty Singapore 2026 — Commercial, Industrial & Long-Term Residential Leases, Premium Duty & GST Treatment
Lease duty is stamp duty payable on lease agreements (as distinct from standard short-term residential tenancy agreements). While the underlying formula is the same 0.4% rate with the three-band lease-period structure, commercial and industrial leases introduce important complexities that a simple residential tenancy stamp duty calculator cannot handle: premiums or key-money payments, service charge exclusions, GST-registered landlord adjustments, step-up rent schedules, renewal option duty, and long-term industrial leases (e.g., JTC 30-year leases). This calculator covers all these scenarios, providing a comprehensive lease duty figure across the full structure of a Singapore commercial or industrial lease agreement.
Singapore Lease Duty Formula — 3 Bands by Lease Period
| Lease Term | Stamp Duty Formula | Rate | S$10,000/mo Rent Example |
|---|---|---|---|
| Up to 1 year (≤12 months) | 0.4% × Total Rent | 0.4% | 0.4% × S$120,000 = S$480 |
| 1–3 years (13–36 months) | 0.4% × 2 × AAR | 0.4% | 0.4% × S$240,000 = S$960 |
| Above 3 years (37+ months) | 0.4% × 4 × AAR | 0.4% | 0.4% × S$480,000 = S$1,920 |
Premium / Key Money: Additional 0.4% on the Lump-Sum Payment
| Component | Stamp Duty | Example |
|---|---|---|
| Monthly rent | 0.4% × AAR band formula above | S$10,000/mo × 36mo: S$960 |
| Premium / key money (paid by tenant) | 0.4% × Premium amount | S$50,000 premium: S$200 |
| Service charges (itemised separately) | Excluded — no stamp duty | S$1,000/mo service: S$0 |
| GST on rent (9%) | Excluded — duty on ex-GST rent | S$10,900 incl. GST → base S$10,000 |
| Reverse premium (landlord pays tenant) | No stamp duty on reverse premium | Fit-out contribution by landlord: S$0 |
How This Lease Duty Calculator Works — Step-Up Rents, GST Stripping & Renewal Options
Step 1 — Select Lease Type and Term; GST Adjustment
Select whether the lease is commercial, retail, industrial, or residential. Select the full lease term — the calculator auto-applies the correct band formula. If the landlord is GST-registered and the rent is quoted GST-inclusive (rent + 9%), select “Yes” for GST-registered. The calculator strips the 9% GST before applying the stamp duty formula — since IRAS only taxes the GST-exclusive rent component.
Step 2 — Enter Step-Up Rents for Average Annual Rent
Most commercial leases have rent escalation clauses — rent increases at the start of each lease year or every two years. Enter up to 3 rent tiers with the number of years at each rate. The calculator computes the weighted Average Annual Rent (AAR) across all tiers — the basis for the stamp duty calculation under the 2×AAR and 4×AAR formulas. Service charges are entered separately and are excluded from the stamp duty base as they represent distinct contractual obligations.
Step 3 — Add Premium and Renewal Option for Complete Duty
Enter any premium/key money for the additional 0.4% stamp duty on the lump sum. Enter the renewal option term to see the forward renewal stamp duty — useful for planning cash flow at lease renewal. The total lease duty combines all components: rent duty + premium duty + renewal duty (if exercised).
3 Real Singapore Lease Duty Examples — Office 3-Year, Retail with Key Money & JTC 30-Year Industrial
Office Lease, S$12,000/mo, 3 Years
Retail, S$20K/mo + S$60K Key Money
JTC Industrial, S$8,000/mo, 30 Years
3 Expert Lease Duty Tips — 3+3 Structure, Step-Up Rent AAR Trap & Reverse Premium
The 3+3 Lease Structure: Two Separate Stamp Duties, Not One
The most common commercial lease structure in Singapore is a 3+3 arrangement: a 3-year initial term with an option to renew for a further 3 years. Many tenants and landlords assume this is a 6-year lease and calculate stamp duty on the full 6-year term. This is incorrect. The initial 3-year lease and the 3-year renewal option are two separate stampable instruments: (1) Initial 3-year lease: stamp duty on signing = 0.4% × 2 × AAR; (2) 3-year renewal: when the tenant exercises the option and signs the renewal agreement, additional stamp duty = 0.4% × 2 × AAR at the renewal rent. Both are due within 14 days of the respective signing date. For a 3+3 office lease at S$12,000/mo both terms: total stamp duty = S$1,152 + S$1,152 = S$2,304 paid over the 6-year period (S$1,152 at year 0 and S$1,152 at year 3). Never calculate stamp duty as if the 3+3 were a single 6-year lease — that would incorrectly apply the 4×AAR formula.
Step-Up Rents: How the AAR is Calculated and Why It Matters
Commercial leases frequently include rent escalations: Year 1 at S$10,000/mo, Year 2 at S$10,500/mo, Year 3 at S$11,000/mo. The stamp duty base for leases over 1 year uses the Average Annual Rent (AAR) — the arithmetic mean of all annual rents across the lease term. For a 3-year lease with S$10,000, S$10,500, S$11,000: AAR = (S$120,000 + S$126,000 + S$132,000) ÷ 3 = S$126,000/year = S$10,500/month average. Stamp duty = 0.4% × 2 × S$126,000 = S$1,008. If you incorrectly use only the Year 1 rent (S$10,000/mo), you would calculate S$960 — a S$48 understatement. While small in absolute terms, understatement can lead to IRAS assessment for shortfall plus penalties. Always use the full weighted average across all years when calculating stamp duty for step-up or escalating rent leases.
Reverse Premiums (Landlord Incentives) vs Tenant Premiums: Different Tax Treatment
Tenant premiums (key money) paid to the landlord attract 0.4% additional stamp duty. However, reverse premiums — lump-sum payments from the landlord to the tenant as an incentive to sign the lease (e.g., fit-out contribution, rent-free cash allowance, or rent-free period cash equivalent) — are not subject to stamp duty. They do, however, have income tax implications: a reverse premium received by the tenant is typically treated as taxable income (if the tenant is a business). For stamp duty purposes, the key question is: is the payment from tenant to landlord (subject to 0.4% duty) or from landlord to tenant (no stamp duty, but income tax consideration for tenant)? Many commercial lease negotiations involve a combination of rent-free periods (no stamp duty implication), cash fit-out contributions (reverse premium, no stamp duty), and reduced rent in Year 1 (affects AAR calculation). Structure lease incentives carefully with your commercial lawyer and tax advisor for optimal treatment.