By MoneyBees
Work out the tax on your SRS withdrawals: 50% taxable from your statutory retirement age of 62, 63 or 64, spread over up to 10 years, or fully taxed plus a 5% penalty if you take the money out early. Your other income is counted too.
Your penalty-free age is fixed by the date you first paid in.
Up to 10 years from your first penalty-free withdrawal.
Rent, part-time pay or annuity income, after reliefs. CPF LIFE payouts are not taxed.
Total tax over the spread
$0
$0 a year for 10 years
Early withdrawal penalty
$0
none at your age
You keep
$300,000
before investment gains or losses
You withdraw $30,000 a year. Only half, $15,000, is added to your income. With $0 of other chargeable income you can take out up to $40,000 a year and pay no tax on it.
Each year's withdrawal is taxed in the following Year of Assessment. Your SRS operator reports it to IRAS, so you do not declare it yourself.
| Spread | Each year | Taxable each year | Total tax |
|---|---|---|---|
| 1 year | $300,000 | $150,000 | $12,450 |
| 2 years | $150,000 | $75,000 | $6,000 |
| 3 years | $100,000 | $50,000 | $3,750 |
| 5 years | $60,000 | $30,000 | $1,000 |
| 10 years | $30,000 | $15,000 | $0 |
Assumes equal withdrawals and the same other income each year, at YA 2026 resident rates. Anything still in the account after 10 years is deemed withdrawn, with 50% taxable.
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| First SRS contribution | Penalty-free from age |
|---|---|
| Before 1 Jul 2022 | 62 |
| 1 Jul 2022 to 30 Jun 2026 | 63 |
| From 1 Jul 2026 | 64 |
IRAS: the statutory retirement age at the time of your first contribution applies. A later rise in the retirement age does not change yours.
IRAS's own example: S$400,000 in SRS, no other income, S$40,000 withdrawn each year for 10 years. Half of each withdrawal, S$20,000, is taxable, and that falls in the 0% band. Total tax: S$0.
Take the same S$400,000 out in one year and S$200,000 is taxable. The tax is S$21,150. Take S$50,000 out at 55 when your penalty-free age is 64 and you earn S$60,000: the whole S$50,000 is taxed at 7% and 11.5%, S$4,850, plus a S$2,500 penalty.
It is the statutory retirement age when you made your first SRS contribution: 62 if that was before 1 Jul 2022, 63 from 1 Jul 2022 to 30 Jun 2026, and 64 from 1 Jul 2026. A later change to the retirement age does not move yours.
From your penalty-free age, 50% of each withdrawal is added to your taxable income. Before that age, 100% is taxable.
5% of the amount you withdraw, on top of tax on the full amount. There is no penalty for withdrawals on medical grounds, on death, in bankruptcy, or a foreigner's full withdrawal after holding the account for 10 years.
With no other taxable income, S$40,000 a year. Half of it, S$20,000, is taxable, and the first S$20,000 of chargeable income is taxed at 0%. Over the 10-year period that is S$400,000.
10 years from your first penalty-free withdrawal. Whatever is still in the account after that, including investments at market value, is treated as withdrawn and 50% of it is taxed.
Yes. The taxable half of your withdrawal is added to your other income for the year, such as rent or part-time pay, so it is taxed at your top rate. CPF LIFE payouts are not taxable and do not count.
In the Year of Assessment after the year you withdraw. Your SRS operator reports the withdrawal to IRAS, so you do not need to declare it.
A lump sum puts a large taxable amount into one year. S$400,000 in one year means S$200,000 is taxable and the tax is S$21,150. Spread over 10 years with no other income, the tax is S$0.
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).