by Kenny Lee Historical policy and news archive · Source publication: 2018-02-19 · Implementation: 20 February 2018. Prepared retrospectively on 3 October 2026; the archive date follows the cited source. Historical rules must be matched to the relevant transaction date.
The announcement
The top marginal residential BSD rate rose from 3% to 4% on the portion above S$1 million. Lower bands remained 1% on the first S$180,000, 2% on the next S$180,000 and 3% on the next S$640,000. Transitional relief applied to qualifying earlier options exercised within the stipulated deadline.
What this means for property planning
The 4% rate did not apply to the whole purchase price. For an assumed taxable value of S$1.5 million, the historical computation is S$1,800 + S$3,600 + S$19,200 + S$20,000 = S$44,600. Applying the previous bands gives S$39,600: a S$5,000 difference.
A buyer comparing homes should set aside purchase taxes separately from the deposit, legal fees and renovation budget. Having enough for the booking deposit does not establish that the full purchase is affordable. BSD also differs from ABSD: the latter depends on the buyer profile and ownership circumstances. The residential BSD bands changed again in 2023, so this example belongs to the 2018 archive.
Before acting
Establish your household profile, property ownership, financing and transaction dates. Obtain a written eligibility or financing assessment where needed. A historical announcement cannot establish your present eligibility, tax liability or borrowing limit.
Source: Original official release or dated news report. Reviewed 3 October 2026.