Selling Guide
HDB Resale Levy Explained: Do You Need to Pay It?
"Do I have to pay a resale levy when I sell my flat?" is one of the most common questions from HDB owners nearing MOP, and also one of the most common wrong assumptions. Most sellers never pay it. The levy isn't triggered by selling; it's triggered by what you buy next.
This article covers exactly who it applies to, how much it costs, and when it's due.
The levy is not a selling cost, it's a next-purchase cost
HDB says the resale levy is meant to reduce the housing subsidy on a second subsidised flat. Selling your HDB flat on the open market, on its own, does not trigger it. You become liable when you have previously bought subsidised housing and you are then listed as a core applicant or core occupier in an application to buy a second subsidised flat: a new flat from HDB (for example a BTO or SBF flat), or a new Executive Condominium (EC) bought from a property developer.
HDB's position is that if you do not intend to buy a second subsidised flat from HDB, that is, you are buying a resale flat or private residential property, you need not pay the resale levy.
Who actually pays it
You're liable if both of the following are true:
- You previously bought subsidised housing. HDB counts: a flat bought from HDB, a resale flat bought with CPF housing grant(s), a Design Build and Sell Scheme (DBSS) flat bought with a CPF housing grant, an Executive Condominium unit bought from a developer, and other forms of subsidy such as benefits under the Selective En bloc Redevelopment Scheme (SERS) or the privatisation of a HUDC estate.
- You are now a core applicant or core occupier in an application for a second subsidised flat (a new flat from HDB, or a new EC from a developer).
The levy applies regardless of whether the first flat was held as joint tenants or tenants in common, and regardless of a shared interest in the flat. In practice, if a member of your core family nucleus took the subsidy, check your position with HDB before applying.
Who is exempt
- First-timers with no prior subsidised purchase.
- Anyone buying a resale flat or private residential property, per HDB's position above.
- Anyone whose first flat was bought on resale with no CPF housing grant used (it is not subsidised housing).
How much the levy costs
The amount depends on the flat type you disposed of, not the flat type you're now buying. For a first flat sold on or after 3 March 2006, HDB's fixed amounts are:
| First flat type | Family | Single |
|---|---|---|
| 2-room / 2-room Flexi | $15,000 | $7,500 |
| 3-room | $30,000 | $15,000 |
| 4-room | $40,000 | $20,000 |
| 5-room | $45,000 | $22,500 |
| 3Gen | $45,000 | Not applicable |
| Executive | $50,000 | $25,000 |
| Executive Condominium (EC) sold by developers | $55,000 | $27,500 |
If the first subsidised flat was sold before 3 March 2006, a percentage-graded levy applies instead (based on the higher of the resale price or 90% of market value, subject to minimums). The amount is based on the policy in force when you sold your first subsidised flat; HDB tells you the amount payable when you book your next flat. Plus and Prime flats also carry a separate subsidy recovery on resale, in addition to any resale levy.
When and how it's paid
HDB determines the levy at the point you book your second subsidised flat. It cannot be paid with CPF savings or a housing loan. Payment depends on when you dispose of the first flat:
| When you dispose of the first subsidised flat | How the levy is paid |
|---|---|
| Before key collection of the second subsidised flat | Paid in cash as a single lump sum at the key collection appointment |
| After key collection of the second subsidised flat | Deducted from the net proceeds of selling the first flat; any shortfall is paid in cash |
If you sell first, the levy does not reduce your sale proceeds; you need to have the cash ready at key collection. If you collect the new keys first, it will be taken out of your sale proceeds. Either way it is worth planning cash flow around if a second BTO is part of your plan.
Worked example
A couple sells their 4-room BTO flat (bought with no prior grant history) and buys a resale flat on the open market. No resale levy applies because they are not buying a second subsidised flat from HDB.
The same couple instead applies for a new BTO flat as their next home. Because their first flat was a subsidised 4-room flat, they owe a $40,000 resale levy (family rate), whatever the size of the new flat. If they sell the 4-room flat before collecting the keys to the new one, they pay $40,000 in cash at key collection. If they collect the new keys first, HDB deducts $40,000 from the net proceeds of the 4-room sale.
FAQ
Does selling my flat trigger the resale levy?
No. Selling alone does not trigger it. It applies when you apply for a second subsidised flat from HDB or a new EC from a developer.
I bought my first flat on resale with a CPF Housing Grant, am I still liable?
Yes, if you later buy a second subsidised flat. HDB counts a resale flat bought with CPF housing grant(s) as subsidised housing.
Can I pay the resale levy with my home loan or CPF?
No. HDB says payment must be made using cash and/or your flat sale proceeds, and not a housing loan, and the levy cannot be paid with CPF savings.
Does the levy amount depend on the flat I'm buying or the flat I sold?
The flat you sold (or disposed of). The flat type you're now buying doesn't change the levy amount.
Figures current as of October 2026. Always verify against the live HDB page before relying on them, as levy amounts and conditions are periodically revised.
Not sure whether your specific situation triggers a resale levy, or want to see your full HDB sale proceeds after CPF refund and any levy? Use PropLeh's HDB Sale Proceeds Calculator, or message us on WhatsApp and we'll check your eligibility with you directly.