How to reduce income tax in Singapore: what each move saves you
How do you reduce income tax in Singapore? You shrink your chargeable income, the part of your pay that's left after reliefs. The three moves you control are CPF cash top-ups, SRS contributions and donations to approved charities. Each dollar of relief saves you your top tax rate, as long as it stays inside your top band. So the same top-up saves someone on S$110,000 more than three times what it saves someone on S$40,000. Here's what each move is worth at your income, what it locks away, and the one date that decides which year it counts for.
How much does a tax relief actually save you?
A relief saves you its amount times the rate of the top band your chargeable income sits in, for the part that stays inside that band.
Singapore taxes residents in bands. Your first S$20,000 of chargeable income is taxed at 0%. The next slices are taxed at 2%, 3.5%, 7%, 11.5% and up, to 24% on anything above S$1 million. Only the slice inside each band pays that band's rate.
So a relief comes off the top slice first. If your chargeable income is S$110,000, you're in the 11.5% band, which runs from S$80,001 to S$120,000. Every dollar of relief you claim there saves you 11.5 cents.
A big relief can push you down into a lower band. The part below the line then saves the lower rate, so work out the tax before and after to be sure.
Quick check: does a relief ever save you more than its amount? No. At the very top rate of 24%, S$1,000 of relief saves you S$240.
The table shows what one S$8,000 cash top-up to your own CPF would save at four incomes. In each case the top-up stays inside the same band, so the sum is simple.
| Chargeable income | Your top tax rate | Tax saved by S$8,000 of relief |
|---|---|---|
| S$40,000 | 3.5% | S$280 |
| S$60,000 | 7% | S$560 |
| S$110,000 | 11.5% | S$920 |
| S$150,000 | 15% | S$1,200 |
Tax saved by S$8,000 of relief, by chargeable income, YA 2024 onwards rates
| Chargeable income | Tax saved |
|---|---|
| S$40,000 | S$280 |
| S$60,000 | S$560 |
| S$110,000 | S$920 |
| S$150,000 | S$1,200 |
Quick maths: what do a CPF top-up and SRS save together?
Say your chargeable income is S$110,000 and you do both big moves before 31 December. Here's the sum, step by step.
- Tax on S$110,000: S$3,350 on the first S$80,000, plus 11.5% of the next S$30,000 (S$3,450). That's S$6,800.
- You top up your own CPF with S$8,000 in cash. Chargeable income falls to S$102,000.
- You put S$15,300 into your SRS account. Chargeable income falls to S$86,700.
- Tax on S$86,700: S$3,350, plus 11.5% of S$6,700 (S$770.50). That's S$4,120.50.
- You save S$2,679.50 in all: S$920 from the CPF top-up and S$1,759.50 from SRS. Both stayed inside the 11.5% band, so that's simply S$23,300 times 11.5%.
| Tax before any top-up | S$6,800.00 |
|---|---|
| Saved by the S$8,000 CPF top-up | -S$920.00 |
| Saved by S$15,300 into SRS | -S$1,759.50 |
| Tax you pay | S$4,120.50 |
Does it work the same on a smaller salary?
It works the same way, but it saves you much less.
Say your chargeable income is S$40,000. Your tax there is S$550. One S$8,000 top-up to your own CPF brings your chargeable income to S$32,000 and your tax to S$270. You save S$280, and the S$8,000 now sits in CPF for retirement.
That's the point most guides skip. At a lower income, a relief still helps. Locking money away mainly for the tax break rarely makes sense, though. Our income tax calculator shows your own top band in a minute.
How does a CPF cash top-up cut your tax?
You can claim up to S$16,000 of CPF Cash Top-up Relief a year. Up to S$8,000 is for cash you put into your own CPF. The other S$8,000 is for cash you put into a family member's CPF: a parent, grandparent, spouse or sibling, including in-laws.
The family half has a condition for some relatives. If you top up a spouse or sibling, their annual income must not have been more than S$8,000 in the year before. That test doesn't apply if they have a disability, and it's only for a spouse or sibling.
Since 1 January 2022, cash top-ups to your own or your family's MediSave count under this same relief and the same limits. For retirement top-ups, relief stops at the Full Retirement Sum. Once the account has reached it, a top-up there earns no relief.
Two newer rules catch people out. A top-up that attracts a Matched Retirement Savings Scheme grant gets no tax relief from YA 2026. That covers top-ups received from 1 January 2025. A MediSave top-up that attracts a Matched MediSave Scheme grant gets no relief from YA 2027, for top-ups made from 1 January 2026.
There's one more thing to know before you send the money. Once CPF Board accepts a cash top-up, you can't get it refunded. It stays in CPF.
Our guide to topping up CPF with cash to cut income tax walks through which account the money goes to. The CPF top-up tax relief calculator works out your saving.
How does SRS lower your income tax?
Every dollar you put into your SRS account, up to the yearly limit, comes off your chargeable income.
SRS, the Supplementary Retirement Scheme, is a retirement account you open with a bank. The yearly limit is S$15,300 if you're a Singapore citizen or PR, and S$35,700 if you're a foreigner.
The timing matters. Money that reaches your SRS account by 31 December counts for the next Year of Assessment, and your bank may set an earlier cut-off, so check with it. A contribution made in time in 2026 lowers the tax you pay in 2027.
Part of the saving is a delay. When you take money out at retirement, half of each withdrawal is taxed as income.
So is SRS better than a CPF top-up? It depends on when you'll want the money. SRS money is meant for retirement, so read how withdrawals work in our guide to the SRS account before you put in cash you might need. The SRS vs CPF top-up calculator puts the two side by side.
Do donations reduce your income tax?
Yes. Give to Community Chest or an approved Institution of a Public Character, an IPC. Your deduction can be up to 2.5 times your gift, though the tax you save is always less than you gave.
Say you give S$1,000 to an approved IPC and your top rate is 11.5%. Your deduction can be S$2,500, which saves you S$287.50 in tax.
You don't fill in anything. You give your NRIC or FIN when you donate, and the IPC sends the record to IRAS. The deduction then shows up on your next tax bill by itself.
Your money still goes to the charity, so a donation always costs you more than the tax it saves. It's a way to give more for the same cost, not a way to make money. The donation tax deduction calculator shows your number.
Which reliefs might you be missing already?
Some reliefs need nothing from you. Earned Income Relief is given automatically. It's S$1,000 if you were under 55 on 31 December of the year before. It's S$6,000 from 55 to 59, and S$8,000 from 60. It can't be more than your earned income.
Others depend on your family. Do you support a parent, have children, work as a mum or have done NS? Then look at Parent Relief, Qualifying Child Relief, Working Mother's Child Relief and NSman Relief. Each has its own conditions and amounts on IRAS's tax relief pages.
Many of these are filled in for you from government records, so check that your tax bill shows them. Our Parent Relief calculator and NSman relief calculator help with two of the common ones.
For the full list, with every amount, see our guide to every tax relief in Singapore.
The catch: what's the most relief you can claim?
All your reliefs added together, including CPF top-ups and SRS, are capped at S$80,000 for each Year of Assessment.
Most people never get near it. It matters if you earn a lot and stack big family reliefs on top of SRS and CPF top-ups. Then a top-up past the cap saves nothing in tax.
Reliefs are also for tax residents only. If you're taxed as a non-resident, CPF top-ups and SRS won't lower your bill through relief.
Some old tricks have gone, too. Course Fees Relief lapsed from YA 2026, and Foreign Domestic Worker Levy Relief has lapsed as well. So that diploma or that helper's levy won't lower your bill any more.
Can you count on a tax rebate?
Don't count on one. The moves you make by 31 December 2026 count for YA 2027, and rebates are announced at Budget, so none has been set for it yet.
IRAS lists no Personal Income Tax Rebate for YA 2026. For YA 2025, the rebate was 60% of tax payable, up to S$200. For YA 2024, it was 50%, also up to S$200.
So plan with reliefs and deductions, and treat any rebate as a bonus. For how the bill is worked out from start to finish, see our guide to income tax in Singapore.
When do you need to act?
By 31 December, or your bank's SRS cut-off if it's earlier. CPF cash top-ups, SRS contributions and donations count for the year they land in.
Anything that reaches CPF, your SRS account or the charity by 31 December 2026 lowers the tax you pay in 2027. Miss the date by a day and it counts a year later.
Banks and charities get busy in the last week of December. Give yourself a few working days so the money arrives in time.
The MoneyBees take: what we'd check first
We'd find our top tax band first, because it decides what every move here is worth. Then we'd look at the CPF top-up and SRS, since those two give the most relief for most people.
The trade-off is that both lock money away for retirement, and a CPF top-up can't be undone. A donation costs more than it saves, so it only makes sense if you were going to give anyway.
What settles it is whether you'll need that cash in the next few years. If you won't, the tax saving is a bonus on money you were saving anyway.
Before you go
Open last year's tax bill in myTax Portal and find your chargeable income. That one number tells you your top band, and what each move above would save you before 31 December.
Frequently asked questions
How do I reduce income tax in Singapore?
Lower your chargeable income. The moves you control are cash top-ups to your own or your family's CPF (up to S$16,000 a year), SRS contributions (up to S$15,300 for citizens and PRs) and donations to approved IPCs. Each relief saves your top tax rate on every dollar that stays inside your top band.
How can I reduce tax on my income legally?
Claim the reliefs and deductions IRAS allows. Check the automatic ones on your tax bill, such as Earned Income Relief, then decide on CPF top-ups and SRS before 31 December. All reliefs together are capped at S$80,000 a year.
Is there a personal income tax rebate for YA 2027?
None has been announced, because rebates are set at Budget. IRAS lists none for YA 2026, and the YA 2025 rebate was 60% of tax payable, up to S$200, so plan around reliefs.
Can I top up my parents' CPF for tax relief?
Yes, up to S$8,000 a year for family members. The S$8,000 income test is only for a spouse or sibling. There's no relief once the account has reached the Full Retirement Sum, or on a top-up that attracts a Matched Retirement Savings Scheme grant.
Does an SRS contribution in December count for this year's tax?
It counts for the next Year of Assessment. Money that reaches your SRS account by 31 December 2026 lowers the tax you pay in 2027.
Sources
- IRAS, individual income tax rates
- IRAS, tax reliefs
- IRAS, tax reliefs, rebates and deductions
- IRAS, CPF Cash Top-up Relief
- IRAS, SRS contributions
- IRAS, donations and tax deductions
- IRAS, compulsory and voluntary MediSave contributions
- IRAS, Earned Income Relief
- IRAS, tax savings for married couples and families
Keep exploring
- Tax Relief in Singapore (2026): Every Relief, the $80,000 Cap, and How to Claim
- Income Tax in Singapore: How It Works and How to Pay Less (Legally)
- Top up CPF SA with cash to cut income tax: 2026 guide
- SRS account in Singapore: the tax break most people half-use
- Singapore income tax calculator
- Singapore tax relief calculator
- CPF top-up tax relief calculator
- SRS vs CPF top-up calculator
- Donation tax deduction calculator
- Chargeable Income
- Tax Relief
- Marginal Tax Rate
- SRS
- Year Of Assessment
This is general financial information for Singapore, not personal financial advice. Figures change, so verify current rates against the official sources above before acting. See our full disclaimer.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).