The resale levy maintains a fair allocation of public housing subsidies between first-timers and second-timers by reducing the subsidy enjoyed for the second HDB flat or EC.
Half-resale levy for Singles Grant recipients
If you are Singles Grant recipient, you only need to pay half the resale levy amount when you subsequently form a family and buy a second subsidised flat.
Situations in which a resale levy is payable
You need to pay a resale levy in either of these cases:
- You dispose of your subsidised flat and then buy a second subsidised flat from HDB
- You dispose of your subsidised flat and then buy an EC from a developer where the land sale was launched on or after 9 December 2013, including those where tenders were not closed, i.e. Westwood Avenue, Canberra Drive and Anchorvale Crescent
You need not pay a resale levy if you are buying any of these:
- Design, Build and Sell Scheme (DBSS) flat from a developer
- EC from a developer; where the land sale was launched before 9 December 2013
- HDB resale flat
- Private residential property
Resale levy amount: first subsidised flat sold on or after 3 March 2006
This fixed resale levy amount gives greater certainty for financial planning, be it for upgrading to a larger flat, or right-sizing to a smaller flat.
For cases where the first subsidised flat was sold before 3 March 2006, a graded resale levy applies.
*Only applicable to 2-room flat sellers that upgrade to a larger flat type.
If the graded resale levy was not paid when you sold the first subsidised flat, i.e. you opted to defer the payment until you purchase another HDB flat, interest at a prevailing rate of 5% per annum is charged.
Waiver of Interest for Elderly
If you have sold your first subsidised flat before 3 March 2006 and right-size to a new 2-room or 3-room flat from November 2015 sales launch onwards, you will pay only the percentage resale levy, with the interest waived, if you and your spouse are aged 55 and above at the point of the new flat application. The resale levy payable is subject to a minimum payment of $15,000 for 2-room, $30,000 for 3-room, $40,000 for 4-room, $45,000 for 5-room, and $50,000 for Executive flat. These amounts are the resale levy payable by second-timers who sold their first subsidised flat on or after 3 March 2006.
Paying the resale levy
The resale levy payable is determined at the point you book your second subsidised flat. It applies regardless of ownership type (joint-tenancy or tenancy-in-common) or shared interest in the flat.
Payment can only be made by way of your flat sale proceeds and/ or cash. HDB mortgage financing will not be extended to the payment of a resale levy.
When and how payment is made