Singapore Income Tax Guide 2026 — Complete Salary Breakdown

Singapore is known for its low and competitive tax rates. This guide covers everything you need to know about personal income tax and CPF contributions in Singapore for 2026.

Quick Summary (TL;DR)

Key Points for 2026:

• First SGD 20,000 income: Tax-free
• Progressive rates: 0% to 24%
• CPF contribution: 20% employee + 17% employer (on first SGD 6,000/month)
• Filing deadline: April 18, 2026
• Chargeable income for most residents is reduced by personal reliefs

Income Tax Brackets 2026

Singapore's personal income tax rates for residents (Year of Assessment 2026):

Chargeable Income (SGD)	Tax Rate	Tax on Band
First 20,000	0%	0
Next 10,000 (20,001–30,000)	2%	200
Next 10,000 (30,001–40,000)	3.5%	350
Next 40,000 (40,001–80,000)	7%	2,800
Next 40,000 (80,001–120,000)	11.5%	4,600
Next 40,000 (120,001–160,000)	15%	6,000
Next 40,000 (160,001–200,000)	18%	7,200
Next 40,000 (200,001–240,000)	19%	7,600
Next 40,000 (240,001–280,000)	19.5%	7,800
Next 40,000 (280,001–320,000)	20%	8,000
Next 180,000 (320,001–500,000)	22%	39,600
Next 500,000 (500,001–1,000,000)	23%	115,000
Above 1,000,000	24%	—

Tax Calculation Examples

Example 1: SGD 60,000 Annual Income

Band	Income	Rate	Tax
First SGD 20,000	20,000	0%	0
Next SGD 10,000	10,000	2%	200
Next SGD 10,000	10,000	3.5%	350
Next SGD 20,000	20,000	7%	1,400
Total	60,000		SGD 1,950

Effective rate: 3.25% After personal reliefs (e.g., SGD 5,000 earned income relief): tax ≈ SGD 1,600

Example 2: SGD 120,000 Annual Income

Total income tax: approximately SGD 8,000 – SGD 9,000 depending on reliefs claimed.

Effective rate: ~7%

CPF (Central Provident Fund) Contributions

CPF is Singapore's mandatory savings scheme for Singaporeans and Permanent Residents (not applicable to Employment Pass holders/foreigners).

CPF Contribution Rates (Employees under 55)

Monthly Salary	Employee Rate	Employer Rate
Above SGD 750	20%	17%
SGD 500 – SGD 750	Graduated	Graduated
Below SGD 500	0%	0%

Ordinary Wage (OW) Ceiling: SGD 6,000/month CPF contributions are calculated only on the first SGD 6,000 of monthly wages.

Example: SGD 8,000/month salary

• CPF-applicable wage: SGD 6,000 (capped)
• Employee CPF: SGD 6,000 × 20% = SGD 1,200/month
• Employer CPF: SGD 6,000 × 17% = SGD 1,020/month

CPF Allocation Across Accounts

CPF Account	Purpose	Allocation (under 35)
Ordinary Account (OA)	Housing, investment, education	23%
Special Account (SA)	Retirement savings	6%
MediSave (MA)	Healthcare	8%

Additional Wage (AW) Ceiling

Annual CPF on Additional Wages (bonus, overtime) is capped at: AW Ceiling = SGD 102,000 – Total OW for the year

Key Tax Reliefs for 2026

Relief	Amount
Earned Income Relief	SGD 1,000 – SGD 8,000 (varies by age)
NSman (National Service) Relief	SGD 1,500 – SGD 5,000
Spouse Relief	SGD 2,000
Qualifying Child Relief	SGD 4,000 per child
CPF Relief	Up to SGD 37,740
SRS Relief	Up to SGD 15,300 (Singaporeans/PRs)
Course Fees	Up to SGD 5,500
CPF SA/RA Top-up	Up to SGD 8,000

Non-Residents

Non-residents are taxed at a flat 24% rate (or the resident rate, whichever is higher) — with no personal reliefs.

Employment Pass and S Pass holders who are not tax residents pay 24% flat rate.

Filing Your Singapore Tax Return

Most Singaporeans with only employment income do not need to file — their employer submits the Auto-Inclusion Scheme (AIS) data directly to IRAS.

Who Must File?

• You receive a letter from IRAS requesting filing
• You have non-employment income (rental, freelance, etc.)
• You're claiming reliefs not covered by AIS

Filing Deadline

• e-Filing (myTax Portal): April 18, 2026
• Paper filing: April 15, 2026

Tips to Reduce Tax in Singapore

1. Top Up CPF Special Account (SA)

• Earn up to SGD 8,000 tax relief
• CPF SA earns 4% interest (guaranteed by Singapore government)
• Withdrawn at age 55+ for retirement

2. Contribute to SRS (Supplementary Retirement Scheme)

• Singaporeans/PRs: up to SGD 15,300 tax relief
• Foreigners: up to SGD 35,700 tax relief
• SRS funds can be invested in stocks, bonds, unit trusts

3. Make Donations (Community Chest, etc.)

• Cash donations to approved organizations: 250% deduction (i.e., donate SGD 1,000, claim SGD 2,500 deduction)

4. Life Insurance Relief

• Life insurance premiums: up to SGD 5,000 (if not fully covered by CPF relief)

Frequently Asked Questions

Is Singapore income tax high?

No — Singapore has one of the lowest income tax rates in the world. Effective rates for most residents are 3-10%, compared to 20-40%+ in many Western countries.

Do I pay tax on CPF contributions?

Your CPF contributions are part of your gross salary but receive tax relief. This effectively makes CPF a tax-efficient savings vehicle.

Can foreigners on Employment Pass claim CPF relief?

No. Only Singapore Citizens and Permanent Residents contribute to CPF and claim CPF relief.

What is the difference between chargeable income and gross income?

Gross income is your total salary. Chargeable income = gross income minus all eligible reliefs. Income tax is calculated on chargeable income only.

Use the Singapore Tax Calculator

Use our Singapore Tax Calculator to calculate your exact take-home salary after income tax and CPF contributions.

This guide covers tax year 2026 (Year of Assessment 2026). Verify rates at iras.gov.sg.