By MoneyBees
Work out the 250% tax deduction on your donations to IPCs, the income tax it saves at your rate, what the gift really costs you and any deduction you carry forward, using IRAS's resident tax rates.
Sets your CPF and Earned Income Relief.
Parent, child, SRS and so on. CPF is added for you.
Tax you save
$350
at a 7% top rate
Real cost of the gift
$1,650
of $2,000 donated
Deduction
$5,000
2.5 times, outside the S$80,000 cap
Donations you make in 2026 count in YA 2027, the tax bill you get in 2027. IRAS takes $5,000 off your income of $84,000 before your reliefs, so your chargeable income falls from $66,200 to $61,200.
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2.5 times the gift comes off your income, saving tax at your top rate.
| Chargeable income band | Rate | Tax saved | Real cost |
|---|---|---|---|
| up to $30,000 | 2% | $50 | $950 |
| up to $40,000 | 3.5% | $88 | $913 |
| up to $80,000 | 7% | $175 | $825 |
| up to $120,000 | 11.5% | $288 | $713 |
| up to $160,000 | 15% | $375 | $625 |
| up to $200,000 | 18% | $450 | $550 |
| up to $240,000 | 19% | $475 | $525 |
| up to $280,000 | 19.5% | $488 | $513 |
A deduction that crosses a band saves tax at more than one rate; the calculator above works it out exactly.
| Donation | Deduction |
|---|---|
| Cash to an approved IPC for local causes, or to the Government | 2.5 times |
| SGX-listed shares or unit trusts (individuals only) | 2.5 times |
| Artefacts, public art, land and buildings (approved) | 2.5 times |
| Cash with a benefit in return | Only the amount above the benefit's value |
| Charities that are not IPCs, or goods not on IRAS's list | None |
| Overseas causes | Only 100% under the overseas humanitarian scheme |
IRAS's example: your income is S$100,000 and you donate S$10,000 to an IPC. You deduct S$25,000, so your assessable income is S$75,000.
With no reliefs, tax falls from S$5,650 to S$3,000. You save S$2,650, so the S$10,000 gift costs you S$7,350.
You do nothing in your tax return. Give your NRIC or FIN to the IPC and IRAS adds the deduction to your assessment from the IPC's records. Receipts are not accepted as claims. The 250% rate runs to 31 Dec 2029 after Budget 2026.
Figures checked 3 Oct 2026.
2.5 times the amount. A S$1,000 cash donation to an approved IPC for local causes gives a S$2,500 deduction from your income.
Budget 2026 extended it for another three years, to the end of 2029.
No. IRAS deducts donations from your statutory income before personal reliefs, so the cap applies only to your reliefs.
2.5 times the gift times your top tax rate. At an 11.5% rate, a S$1,000 donation saves S$287.50 and costs you S$712.50.
In the next Year of Assessment. Donations made in 2026 are deducted in YA 2027.
No. Give the IPC your NRIC or FIN and the deduction is added to your assessment automatically. IRAS does not accept claims based on receipts.
The unused deduction carries forward for up to 5 years of assessment. This does not apply to donations for overseas causes.
Donations to charities that are not IPCs, goods that are not on IRAS's list, and contributions with refund or exclusivity clauses or that are really a commercial deal. If you get a benefit back, only the amount above its value counts.
These calculators provide general estimates for educational purposes only and are not personalised financial advice. Results may rely on rates and rules that change over time, so verify against official sources (IRAS, CPF Board, HDB, MAS) or consult a licensed financial adviser before making decisions.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).