Income Tax in Singapore: How It Works and How to Pay Less (Legally)

Most working Singaporeans pay less income tax than they think, and almost everyone leaves money on the table by skipping reliefs they qualify for. Singapore taxes resident income on a progressive scale: the first $20,000 you earn is taxed at zero, and the rate climbs only on the income above each band. This guide covers who pays, the rate table that applies from the 2024 Year of Assessment, the difference between your marginal and effective rate, the reliefs worth claiming, and how to file without overpaying.

Who pays income tax in Singapore

Your tax depends on your tax residency, not your nationality. You are a tax resident for a Year of Assessment if you are a Singapore citizen or permanent resident who normally lives here, or a foreigner who stayed or worked in Singapore for at least 183 days in the previous year.

Tax residents are taxed on the progressive resident rates below and can claim personal reliefs. Non-residents are taxed differently: employment income is taxed at a flat 15% or the resident rates, whichever is higher, and most other income at 24%, with no personal reliefs.

A Year of Assessment (YA) is the year you are taxed on the income earned the year before. Income you earned in 2025 is assessed in YA2026, which you file by April 2026.

The resident income tax rate table (YA2024 onwards)

Singapore raised the top marginal rates from YA2024. Income above $500,000 is taxed at 23%, and income above $1,000,000 at 24%. The bands below the top tiers are unchanged. The rate in each row applies only to the slice of chargeable income inside that band, not your whole income.

Singapore resident income tax rates, YA2024 onwards
Chargeable incomeRate on this bandTax on the bandCumulative tax
First $20,0000%$0$0
Next $10,0002%$200$200
Next $10,0003.5%$350$550
Next $40,0007%$2,800$3,350
Next $40,00011.5%$4,600$7,950
Next $40,00015%$6,000$13,950
Next $40,00018%$7,200$21,150
Next $40,00019%$7,600$28,750
Next $40,00019.5%$7,800$36,550
Next $40,00020%$8,000$44,550
Next $180,000 (to $500,000)22%$39,600$84,150
Next $500,000 (to $1,000,000)23%$115,000$199,150
Above $1,000,00024%

What income is taxable, and what isn't

Singapore taxes income earned in or derived from Singapore. Employment pay, bonuses, commissions, trade and business profits, rent from a property you own, and most pensions all count. Foreign income received in Singapore by an individual is generally not taxed, with narrow exceptions such as foreign income brought in through a partnership here.

A few sources catch people out because they feel like income but are not taxed. The reverse also happens, so it is worth knowing both lists before you file.

Marginal rate vs effective rate

Your marginal rate is the rate on your next dollar of income, the band your top dollar falls into. Your effective rate is the tax you actually pay divided by your chargeable income, and it is always lower because the early bands are taxed at 0% to 7%.

Take someone with $80,000 of chargeable income. Their marginal rate is 11.5%, but their tax is $3,350, an effective rate of about 4.2%. This is why a pay rise that pushes you into a higher band never leaves you worse off. Only the income inside the new band is taxed at the higher rate. To see your own numbers, run them through our income tax calculator.

A worked example, start to finish

Numbers make the bands concrete. Take Wei, whose chargeable income after all reliefs works out to $52,000. The first $40,000 of that carries $550 of tax, taken from the rate table. The remaining $12,000 falls in the 7% band, adding $840. His gross tax is $1,390.

His marginal rate is 7%, the band his top dollar sits in. His effective rate is $1,390 on $52,000, about 2.7%. Now suppose he had not made a $9,000 voluntary contribution to SRS and a parent's CPF account: his chargeable income would have been $61,000, his tax $2,020, so those contributions cut his bill by roughly $630 while also building retirement savings.

Plug your own figures into the income tax calculator to see your bands and the saving from each relief.

Resident vs non-resident: how the treatment differs

If you spent fewer than 183 days in Singapore in the income year and you are not a citizen or PR who normally lives here, you are taxed as a non-resident, and the rules change in ways that usually cost more.

Non-resident employment income is taxed at a flat 15%, or at the resident rates if those produce a higher figure, so you pay whichever is larger. Director's fees, rent, pension, and most other income are taxed at a flat 24%. Non-residents cannot claim personal reliefs, so the progressive 0% and 2% bands that shelter the first slice of a resident's income do not apply.

The 183-day test is the line that matters. If a stint in Singapore straddles two calendar years, the days can be combined under IRAS rules to reach resident status, which is worth checking before you assume the flat rates apply.

Tax treatment: resident vs non-resident
ItemTax residentNon-resident
Employment incomeProgressive 0% to 24%Higher of 15% flat or progressive rates
Director's feesProgressive rates24% flat
Rent, pension, other incomeProgressive rates24% flat
Personal reliefsCan claimCannot claim
Residency testCitizen, PR, or 183+ daysUnder 183 days and not ordinarily resident

Reliefs: the part most people underclaim

Reliefs reduce your chargeable income before the rates apply, so a $10,000 relief saves you your marginal rate on that $10,000. Some are automatic; most you have to claim. The ones worth checking every year:

The $80,000 relief cap

Total personal reliefs are capped at $80,000 per Year of Assessment. Most people never reach it, but high earners who stack SRS, CPF top-ups, and child reliefs can. If you are near the cap, an extra dollar of relief saves you nothing, so plan the order you claim things — and check whether a CPF top-up still earns its keep through the interest it earns even when the tax relief is capped out.

The personal income tax rebate

Separate from reliefs, the government sometimes grants a one-off rebate on the tax you owe. A rebate cuts the final bill after the rates and reliefs have done their work, so it helps even people who claim no reliefs at all.

For YA2024 the rebate was 50% of tax payable, capped at $200 per taxpayer. For YA2025 it rose to 60% of tax payable, again capped at $200. Tax residents get it automatically, with nothing to claim. The cap means the full benefit lands on lower and middle incomes: someone with a $400 tax bill in YA2025 sees it halved to $200, while a high earner whose 60% would exceed $200 still only gets $200 off.

Rebates are announced at each Budget and are not guaranteed every year, so treat any future one as a bonus rather than something to plan around.

How to legally pay less tax

Every legal way to cut your bill works by lowering chargeable income or using a relief. The moves with the biggest effect for a typical working adult:

Contribute to SRS before the year ends

An SRS contribution reduces your chargeable income now and grows tax-deferred. At withdrawal from the statutory retirement age, only half of each withdrawal is taxable. The deadline is 31 December, not the filing date, so it has to be done in the income year itself. Our SRS calculator shows the tax saving at your income, and SRS vs CPF top-up weighs it against a CPF cash top-up.

Top up CPF in cash

Cash top-ups to your Special or Retirement Account earn 4% or more and qualify for relief up to the limits above. It locks the money away for retirement, so treat it as long-term, not as a savings account. Our guide to CPF SA cash top-ups walks through the relief limits and the timing.

Donate to approved charities

Donations to Institutions of a Public Character give 250% tax deduction — every $100 donated removes $250 from your chargeable income. Deductions sit outside the $80,000 relief cap.

Filing your taxes

Most employees do not need to do much. If your employer is on the Auto-Inclusion Scheme, your salary is already reported to IRAS and pre-filled. You log in to myTax Portal, check the figures, add any reliefs or extra income, and submit.

The filing deadline is 18 April for e-filing. After IRAS processes your return, you receive a Notice of Assessment showing the tax payable. You can pay in one go or spread it over up to 12 months by GIRO. If you disagree with the assessment, you have 30 days from the date of the bill to file an objection.

You generally need to file if your annual income is above $22,000, or if your self-employed income tops $6,000, or if you have rental income. If you are unsure, check the No-Filing Service status in myTax Portal.

What happens if you file or pay late

Missing the deadline is not free. If you do not file on time, IRAS can issue an estimated Notice of Assessment based on its own figures, and that estimated tax is payable within one month even if you plan to object. You may also receive an offer to settle the offence with a composition fee of up to $5,000, depending on your record.

Paying late is penalised separately from filing late. A 5% penalty applies to tax not paid by the due date. If it stays unpaid 60 days after that, IRAS adds 1% for each completed month, up to a further 12% of the outstanding amount. The fix is simple: file on time, and if the bill is large, set up a GIRO instalment plan so the payment is never missed.

Common mistakes

Frequently asked questions

How much can I earn before paying income tax in Singapore?

The first $20,000 of chargeable income is taxed at 0%. After reliefs, many people with low incomes have no tax to pay. You generally need to file a return once your annual income exceeds $22,000.

What is the difference between gross income and chargeable income?

Gross income is everything you earned. Chargeable income is what is left after deducting allowable expenses and personal reliefs, and it is the figure the tax rates are applied to.

When do I need to file my income tax?

File by 18 April for the Year of Assessment, covering income earned in the previous calendar year. If you are on the No-Filing Service, you may not need to file at all, but you should still check your pre-filled details.

Does a pay rise ever leave me with less take-home pay?

No. Singapore uses progressive bands, so a higher rate only applies to the income inside the higher band. Earning more always leaves you with more after tax.

Are CPF contributions taxed?

Your compulsory employee CPF contributions are relieved from income tax automatically, so you are not taxed on that portion of your salary.

How is a non-resident taxed in Singapore?

Non-resident employment income is taxed at a flat 15% or the resident progressive rates, whichever gives the higher tax. Director's fees, rent, and most other income are taxed at a flat 24%. Non-residents cannot claim personal reliefs.

Is overseas or foreign income taxable in Singapore?

Foreign income received in Singapore by an individual is generally not taxed. The main exception is foreign income brought into Singapore through a partnership here, which can be taxable.

Is rental income taxable?

Yes. Rent you collect is taxable income, though you can deduct allowable expenses such as mortgage interest, property tax, and maintenance. Failing to declare rental income carries penalties.

Are capital gains and investment dividends taxed?

Singapore has no capital gains tax, so profits from selling shares or property are not taxed. Dividends from Singapore companies are also generally tax-free, since the tax is paid at the company level.

Is there a tax rebate this year?

A personal income tax rebate was granted for YA2024 at 50% of tax payable, capped at $200, and for YA2025 at 60% of tax payable, capped at $200. Rebates are decided at each Budget and are not guaranteed every year.

Sources

Keep exploring

This is general financial information for Singapore, not personal financial advice. Figures change — verify current rates against the official sources above before acting. See our full disclaimer.