Your total income minus all eligible deductions and tax reliefs. Tax is calculated on this number using progressive resident rates (or a 15%/24% flat rate for non-residents).
Chargeable income is the amount IRAS uses to calculate your income tax — your total assessable income less all eligible deductions and tax reliefs.
It's the number that ends up on your Notice of Assessment, and the number to which Singapore's progressive resident tax bands are applied.
Step 1 — Gross employment income: salary, bonus, allowances, value of perks, director fees, tips. Most CPF-able income is reported by your employer via the AIS.
Step 2 — Add other income: rental income, trade or business income, royalties, distributions from REITs (if not exempt), foreign-sourced income remitted.
Step 3 — Subtract approved expenses: employment expenses (if claimed), trade expenses, donations (2.5× deduction for approved IPCs).
Step 4 — Subtract personal reliefs: earned income relief, CPF contributions, NSman relief, parent relief, course fees, SRS, life insurance premiums (if CPF below cap), RSTU top-ups, qualifying child relief.
What remains is chargeable income.
Since YA2018, total personal income tax reliefs are capped at S$80,000 per Year of Assessment.
Reliefs beyond S$80,000 simply don't reduce chargeable income further. High earners with multiple reliefs (working mother, large family, full SRS) often hit this cap.
Strategy: if you'll exceed the cap, prioritise reliefs that aren't time-bound (e.g. RSTU top-ups must be done in the calendar year). Time-flexible reliefs like NSman or earned-income can be 'absorbed' by the cap without lost opportunity.
Annual salary S$120,000. CPF deduction S$22,800 (employee 20% capped on OW + AW). Earned Income Relief S$1,000. Parent Relief (not staying with you) S$5,500. SRS contribution S$15,300.
Total reliefs: S$44,600. Chargeable income: S$120,000 − S$44,600 = S$75,400.
Tax payable using YA2024 resident rates: ~S$3,278. Effective rate: 4.35% on the original S$120,000 gross.
Your assessable income minus all eligible tax reliefs and deductions. It's the figure IRAS applies the resident tax bands to. Lower chargeable income = lower tax bill, which is why stacking reliefs (CPF, RSTU, SRS, parent, NSman, etc.) matters.
Total personal reliefs are capped at S$80,000 per Year of Assessment (since YA2018). The S$1,000 earned income relief is automatic and effectively comes off the top before the cap.
Gross is everything you earn (salary, bonus, allowances, side income, rental, etc.). Chargeable is what's left after deductions and reliefs. A salary of S$120,000 might produce chargeable income of S$75,000 once CPF + earned income + parent + SRS reliefs are stacked.
Singapore's resident tax bands are progressive — pushing chargeable income down moves you out of higher marginal-rate brackets. Year-end RSTU and SRS top-ups are the main controllable moves to compress chargeable income before 31 December.