How is income tax calculated in Singapore?
Singapore taxes income a year late: what you earn in 2026 is assessed in Year of Assessment 2027. A tax resident’s chargeable income is pay less reliefs, and two reliefs apply to almost every employee: CPF relief for your own CPF contributions, and earned income relief ($1,000 below 55). The rest is taxed from 0% on the first $20,000 up to 24% above $1,000,000.
A non-resident employee gets no reliefs and pays the higher of 15% of gross pay and the resident rates on it.
What is the income tax rate in Singapore?
| Taxable income | Rate |
|---|---|
| SGD 0 – SGD 20,000 | 0% |
| SGD 20,000 – SGD 30,000 | 2% |
| SGD 30,000 – SGD 40,000 | 3.5% |
| SGD 40,000 – SGD 80,000 | 7% |
| SGD 80,000 – SGD 120,000 | 11.5% |
| SGD 120,000 – SGD 160,000 | 15% |
| SGD 160,000 – SGD 200,000 | 18% |
| SGD 200,000 – SGD 240,000 | 19% |
| SGD 240,000 – SGD 280,000 | 19.5% |
| SGD 280,000 – SGD 320,000 | 20% |
| SGD 320,000 – SGD 500,000 | 22% |
| SGD 500,000 – SGD 1,000,000 | 23% |
| Over SGD 1,000,000 | 24% |
What mandatory salary deductions apply?
- CPF: citizens and permanent residents from their third year pay 20% of monthly wages up to age 55, on wages up to the $8,000 Ordinary Wage ceiling, so at most $1,600 a month. The rate falls with age, and is lower in a permanent resident’s first two years.
- Foreigners on employment passes do not contribute to CPF.
Gross salary and take-home salary
Gross salary is what your contract says before anything is taken off. Take-home salary is what reaches your bank account after income tax and the compulsory employee contributions. Employer contributions are paid on top of your salary and are not taken from it.
Example: SGD 6,000.00 a month
A Singapore citizen aged 32 earning $6,000 a month.
| Item | Monthly | Annual |
|---|---|---|
| Gross salary | SGD 6,000.00 | SGD 72,000.00 |
| Income tax | SGD 142.67 | SGD 1,712.00 |
| Compulsory contributions | SGD 1,200.00 | SGD 14,400.00 |
| Take-home pay | SGD 4,657.33 | SGD 55,888.00 |
Effective income tax rate 2.4%; all deductions 22.4%.
How can employees legally reduce their taxes?
- CPF cash top-ups and voluntary contributions to your own or a family member’s account can qualify for relief, within the limits.
- Supplementary Retirement Scheme contributions are deductible within the annual cap.
- Personal reliefs, from earned income relief to relief for dependants, are capped at $80,000 a year in total.
Frequently asked questions
When do I pay tax on 2026 income in Singapore?
In 2027. Income earned in 2026 is assessed in Year of Assessment 2027, and the notice of assessment arrives during 2027.
Does CPF reduce my tax?
Yes. Your own compulsory CPF contributions come off your income as CPF relief before tax is worked out.
How is a non-resident employee taxed?
At 15% of gross employment income, or the resident rates if those come to more, with no personal reliefs.
Is there a tax rebate?
Rebates are announced in each year’s Budget. None has been announced for Year of Assessment 2027, so none is applied here.
Official sources
- Inland Revenue Authority of Singapore: Individual income tax rates (YA 2024 onwards; non-resident employment income). Read 5 November 2026.
- Inland Revenue Authority of Singapore: Earned income relief. Read 5 November 2026.
- CPF Board: CPF contribution rate tables from 1 January 2026. Read 5 November 2026.
Last reviewed 5 November 2026. An estimate for planning, not tax advice; your employer’s payroll and the tax authority decide what is actually withheld.
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