Singapore HDB Guides
HDB Resale Levy Explained: How Much Will You Need To Pay?
Planning to sell your HDB flat and buy another subsidised property? The HDB resale levy is one cost that can affect your upgrade budget, especially if your next move is a new BTO, SBF or Executive Condominium.
Understand when the HDB resale levy applies
Know when it does not apply to your next purchase
Plan your cash flow before buying another subsidised property
Introduction
Many homeowners focus on their selling price, CPF refund and next property budget. However, if your next purchase is another subsidised property, the HDB resale levy may become an important part of your planning.
The resale levy does not apply to every HDB seller. It mainly matters when you have enjoyed a housing subsidy before and are buying another subsidised flat or Executive Condominium from a developer.
What Is the HDB Resale Levy?
The HDB resale levy is a payment meant to reduce the housing subsidy enjoyed on a second subsidised property purchase.
In simple terms, if you previously bought a subsidised HDB flat or received a housing subsidy, and you later buy another subsidised property, HDB may require you to pay a resale levy.
When Does the Resale Levy Apply?
| Scenario | Resale Levy? |
|---|---|
| Selling HDB and buying private condo | No |
| Selling HDB and buying resale HDB | Usually No |
| Selling subsidised HDB and buying new BTO | Yes |
| Selling subsidised HDB and buying SBF | Yes |
| Selling subsidised HDB and buying new EC | Usually Yes |
This table is a simplified guide. Always confirm your actual resale levy position with HDB before making a purchase decision.
When Does Resale Levy Not Apply?
If you are selling your HDB flat and buying a private residential property such as a private condominium, the HDB resale levy is generally not payable.
It also generally does not apply when you buy a resale HDB flat from the open market without taking another subsidised flat from HDB.
Read the HDB to condo upgrade planning guideHow Much Is the HDB Resale Levy?
| First Subsidised Flat Sold | Resale Levy |
|---|---|
| 2-room flat | $15,000 |
| 3-room flat | $30,000 |
| 4-room flat | $40,000 |
| 5-room flat | $45,000 |
| Executive flat / maisonette | $50,000 |
| Executive Condominium | $55,000 |
The above figures are commonly referenced for households that sold their first subsidised flat on or after 3 March 2006. Special situations, Singles Grant cases and older transactions may be treated differently. Always verify your position with HDB.
Example: How Resale Levy Affects Your Budget
Suppose you previously bought a 4-room BTO flat and now plan to buy a new Executive Condominium. If resale levy applies, the levy may be $40,000 based on your previous subsidised flat type.
This $40,000 should be considered early because it affects your available cash flow, especially when combined with stamp duties, legal fees, renovation budget and moving costs.
Resale Levy vs CPF Accrued Interest
Resale levy and CPF accrued interest are often confused, but they are different.
CPF accrued interest is refunded back into your CPF account when you sell your HDB flat. Resale levy, on the other hand, is paid to HDB when you buy another subsidised property and it applies only in specific situations.
Read the CPF accrued interest guideCommon HDB Resale Levy Misconceptions
- • Not every HDB seller needs to pay resale levy
- • Buying a private condo generally does not trigger resale levy
- • The levy is separate from CPF accrued interest
- • The levy should be checked before buying another subsidised property
- • Your actual position should be confirmed with HDB
Frequently Asked Questions
Do I pay resale levy when selling my HDB and buying a condo?
Generally no. Resale levy usually matters when you buy another subsidised property, not when you move to a private condo.
Is resale levy the same as CPF accrued interest?
No. CPF accrued interest goes back into your CPF account. Resale levy is paid to HDB if it applies to your second subsidised purchase.
Can resale levy affect my upgrade budget?
Yes. If you are buying another subsidised property, it can reduce the cash or sale proceeds available for your next move.
Should I check resale levy before selling my HDB?
Yes, especially if your next purchase may be a new BTO, SBF or Executive Condominium.
Final Thoughts
The HDB resale levy is not something every seller needs to worry about, but it becomes very important when your next move involves another subsidised property.
Before committing to your next purchase, review your resale levy position together with your CPF refund, cash proceeds, loan eligibility and total upgrade budget.
Planning Your Next HDB Move?
Speak with Agent W Property for a personalised review of your sale proceeds, CPF refund, resale levy exposure and upgrade options.
About the Author
This article was written by William Tan, founder of Agent W Property. William advises homeowners and investors across Singapore on HDB upgrading, property wealth planning, private residential purchases, commercial property and industrial real estate strategies.
Learn more about William TanContinue Your HDB Journey
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