Singapore uses a progressive resident tax rate ranging from 0% to 24% (YA2025 onwards). Unlike many countries, Singapore does not tax capital gains, inheritance, or most dividends from Singapore companies. Employment income, rental income, and self-employment income are the primary taxable items.

The tax year (Year of Assessment, YA) is based on income earned in the preceding calendar year. For YA2025, you file taxes for income earned in 2024. IRAS (Inland Revenue Authority of Singapore) pre-fills your return, and most salaried employees only need to verify and submit via myTax Portal.

Residents earning below S$22,000 annually pay no tax after the personal relief of S$1,000 is applied. The effective tax rate remains low for most middle-income earners: a S$80,000 income-earner typically pays an effective rate of around 5-7%.

Chargeable income = Assessable income − Personal reliefs. Most employees earning S$50,000–S$100,000 fall in the 11.5%–15% bracket, but the effective rate is much lower after reliefs.

Singapore offers generous tax reliefs that can substantially lower your tax bill. The total reliefs cap is S$80,000 per YA.

• Earned Income Relief — S$1,000 (under 55); S$6,000 (55–59); S$8,000 (60 and above)
• CPF Cash Top-up Relief — Up to S$8,000 for own SA/RA top-up + S$8,000 for family members' top-up = max S$16,000
• SRS Relief — Full deduction on SRS contributions (up to S$15,300 for Singapore Citizens/PR; S$35,700 for foreigners)
• NSman Relief — S$3,000 (active) or S$1,500 (non-key) for servicemen who performed NS in the preceding year
• Parent Relief — S$9,000 per dependent parent/grandparent (resident; S$14,000 if handicapped); must not be claiming working mother's child relief for same person
• Course Fees Relief — Up to S$5,500 for approved courses related to your employment
• Life Insurance Relief — Up to S$5,000 (if CPF contributions are less than S$5,000)

The most impactful relief for most salaried employees is the CPF cash top-up (if you haven't hit the BHS in your MediSave), followed by SRS contributions.

CPF (Central Provident Fund) contributions are mandatory for Singapore Citizens and PRs. Contributions are not deductible for income tax purposes — they are already excluded from taxable income as they are withheld from gross pay. However, voluntary cash top-ups to the Special Account (SA) or Retirement Account (RA) qualify for tax relief.

Employee CPF contribution rates (under 55): 20% of ordinary wages (OW) up to S$6,800/month, with employer contributing a further 17%. The Ordinary Wage (OW) ceiling is S$6,800/month (2024) rising to S$7,400 in 2025 and S$8,000 in 2026.

CPF interest rates: OA earns a minimum 2.5% p.a.; SA and MA earn 4% p.a.; RA earns 4% p.a.. The first S$60,000 of combined balances earns an extra 1% (first S$20,000 from OA). These interest rates are tax-free.

→ Use our CPF calculator to estimate your monthly contributions and balances.

SRS is a voluntary savings scheme that supplements CPF. Contributions are fully deductible in the year made, giving immediate tax savings. The money can be invested in a wide range of products (unit trusts, shares, fixed deposits, insurance) within the SRS account.

• Annual cap: S$15,300 (Singapore Citizens / PRs); S$35,700 (foreigners)
• Tax benefit: Contribution reduces your chargeable income dollar-for-dollar. At the 15% bracket, S$15,300 saves ~S$2,295 in tax.
• Withdrawal: At or after statutory retirement age (63 from 2026), only 50% of each withdrawal is taxable — effectively halving your tax rate on retirement drawdowns.
• Penalty for early withdrawal: 5% penalty on amount withdrawn, and 100% (not 50%) becomes taxable.

→ SRS Tax Savings Calculator