HDB Resale Levy Singapore: What It Is, How Much, and Who Has to Pay
So you're thinking of selling your HDB flat and buying something new. Good plan. But depending on your situation, HDB might be waiting for you at the cashier with a bill before you go.
That bill is called the HDB resale levy.
A lot of people find out about this only when they're already deep into planning their next purchase — which is not the best time to get a surprise. So let's cover everything now, properly.
What Is the HDB Resale Levy?
The HDB resale levy is a payment you make to HDB when you sell a subsidised flat and then buy another subsidised flat.
The logic behind it: HDB gave you a housing subsidy the first time round (via BTO pricing or CPF Housing Grant). If you want to access subsidised housing again, they want some of that benefit back first. It's their way of making sure you don't enjoy double subsidies while someone else is still waiting for their first one.
Read more about what is a HDB first timer !
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Simple enough in theory. In practice, a few things trip people up — mainly around which flat types trigger the levy, and when exactly it bites.
When Does the Resale Levy Apply?
The levy kicks in when both of these conditions are true:
1. Your first flat was a subsidised flat
This means you bought it as a:
- BTO (Built-To-Order) flat directly from HDB
- DBSS (Design, Build and Sell Scheme) flat
- Executive Condominium (EC) bought directly from a developer
It also applies if you bought a resale flat with a CPF Housing Grant (the grant counts as a subsidy).
2. Your second flat is also a subsidised flat
This means you're buying:
- Another BTO flat directly from HDB (chances are much lower lah... but then it might still be a lucky lottery waiting to happen to you 😁)
- An EC directly from a developer (yes, ECs count — they're subsidised housing even though they look like condos). And nowadays ECs have so much restriction since May 2026.
The Important Thing HDB Upgraders Need to Know
If you're upgrading from your HDB flat to a private condo, the resale levy does not apply. Happy and go ahead and buy (and be aware of ABSD and timing of your purchase and sale).
Private condos are not subsidised. There's no levy when you sell your HDB and buy private.
This is one reason why many HDB upgraders who are fence-sitting between an EC and a private condo should factor the levy into their actual cost comparison — it can change the numbers quite a bit.
And if you are interested in buying a new launch condo, read our guide on how to purchase a new launch condo.
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How Much Is the HDB Resale Levy?
The levy amount depends on what type of flat you're selling.
If Your First Home Was an HDB Flat:
| Flat Type Sold | Resale Levy |
|---|---|
| 2-room | 15% of resale price |
| 3-room | 20% of resale price |
| 4-room | 25% of resale price |
| 5-room | 30% of resale price |
| Executive flat | 35% of resale price |
Minimum levy payable: S$15,000
If Your First Home Was an Executive Condominium:
| Previous Home | Resale Levy |
|---|---|
| EC bought from developer | 15% of resale price |
Minimum levy payable: S$10,000
A quick example: you sold your 4-room BTO at S$500,000 (but hor, how to find a 4-room BTO at only $500,000 nowadays 😀). The resale levy would be 25% × S$500,000 =S$125,000. That's not small change. And it comes out of your CPF or cash proceeds before you can use them for your next flat.
(These rules change from time to time — please verify the latest figures on the HDB website or with your friendly property agent. Do not rely on a chatbot for this. 😄)
When Do You Pay the Resale Levy?
The timing depends on whether you sold first or are buying first.
If you sell your flat before completing the purchase of your next flat: The levy is deducted from your sale proceeds at the point of completing the sale. It goes straight to HDB — you don't even see the money.
If you buy your next flat before selling your current one: You'll need to pay the resale levy in cash when you collect the keys to your new flat. This is the scenario that can create cash flow pressure — make sure you plan for it.
Can You Use CPF to Pay the Levy?
Yes, if there are sufficient CPF refunds from the sale of your first flat. HDB will deduct from your CPF first, and any shortfall is paid in cash.
You cannot take a HDB loan or bank loan to cover the levy amount — it must come from CPF or cash.
Who Is Exempt from the HDB Resale Levy?
Not everyone has to pay. Here are the situations where the levy is waived or does not apply:
1. You bought a resale flat without any CPF Housing Grant
If you bought your flat on the open market and did not receive a CPF Housing Grant (Enhanced, Family, Singles, or Proximity Grant), you did not receive a government subsidy — so there's no levy when you buy a second flat from HDB. You are considered a first timer ! 😄
2. You received only the Proximity Housing Grant (PHG) for a resale flat
The PHG is specifically exempt from triggering the resale levy. If that was your only grant, you're not subject to it.
3. You're a first-timer buying your first subsidised flat
The levy only applies the second time. Obviously.
4. Divorced or legally separated persons under specific conditions
There are provisions for divorced individuals who retained ownership after a divorce but may not have been the original applicant. HDB assesses these case by case — if this applies to you, go straight to HDB for clarification rather than relying on secondhand advice. But please don't jump into a purchase without checking first.
5. You're buying private property
Again — private property is not subsidised. No levy. Full stop.
Resale Levy vs. ABSD — Don't Mix Them Up
These are two completely different things and they serve different purposes.
Resale levy — paid to HDB when moving from one subsidised flat to another. One-time, based on your previous flat type.
ABSD (Additional Buyer's Stamp Duty) — paid on any property purchase, with rates that depend on your citizenship status, how many properties you own, and the purchase price. This applies whether you're buying HDB, EC, or private condo. ABSD is always a top topic 😅
If you're buying an EC while still owning your HDB flat (i.e., you haven't sold yet), you may also face ABSD on the EC purchase — though there are remission schemes if you sell your HDB within a set timeframe.
The interaction between resale levy and ABSD catches a lot of people off guard. Run the full cost calculation before committing.
Key Takeaways
Let me cut through it one more time !!
- BTO or grant-assisted resale flat first time? Expect a resale levy if you want another subsidised flat later.
- Upgrading to private condo? No levy. Zero. Walk away clean.
- EC counts as subsidised housing too. Many people don't realise this. A new launch EC from a developer is subject to the levy if you're coming from a subsidised HDB flat.
- Levy comes out of CPF first, then cash. Plan your finances around this — especially if you're buying before selling.
- Got only PHG for your resale flat? You're likely exempt.
If you're an HDB flat owner considering your next move — whether that's a BTO, an EC, or a private new launch — the resale levy is one of the first things to check. It can meaningfully change which option makes more sense financially.
Thinking About Upgrading to a New Launch Condo?
If you're moving from your HDB to a private new launch condo (no resale levy, no EC complications), I can help you figure out which projects make sense for your budget, location preferences, and timeline. Drop me a message and we'll work through it properly.
Disclaimer: This article is for general information only and does not constitute financial or legal advice. Rules and figures are accurate as at time of writing but may change — always verify with HDB directly or speak to a licensed property consultant.
Patrick is a licensed real estate agent at PropNex and earns commissions on new launch condo transactions. This site's content is independently written — but yes, I do have opinions, and sometimes they come with a commission. Full disclosure, always. 😄
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