How to Calculate Salary Income Tax in Singapore: A Step-by-Step Guide

Updated 5 Oct 2026 in Tax & GST

Estimates a resident employee's annual income tax from monthly salary and bonus, allowing for CPF relief and earned income relief.

Singapore's tax system is simple by global standards, but the progressive bands, reliefs and the 9% GST still trip people up. A quick calculation helps you set aside the right amount before IRAS sends your notice of assessment, or check that a bill has been worked out correctly.

What you need

• Monthly salary (S$)
• Annual bonus (S$)
• Age (years)

Step by step

1. Enter the monthly salary (S$).
2. Enter the annual bonus (S$).
3. Enter the age (years).
4. The results update as you type, or press Calculate.
5. Read the gross annual income first, then the supporting figures below it.

The formula

Chargeable income = annual gross − employee CPF (relief capped at S$37,740) − earned income relief (S$1,000 below 55). Tax then follows the resident rate bands.

Worked example

For example, with these inputs:

• Monthly salary (S$): 5,000
• Annual bonus (S$): 10,000
• Age (years): 30

the calculator returns:

• Gross annual income: S$70,000.00
• CPF relief: S$14,000.00
• Estimated chargeable income: S$55,000.00
• Estimated income tax: S$1,600.00
• Effective rate on gross: 2.29%
• Annual cash after CPF and tax: S$54,400.00

A second example

Now change the inputs to:

• Monthly salary (S$): 6,250
• Annual bonus (S$): 10,000
• Age (years): 30

the calculator returns:

• Gross annual income: S$85,000.00
• CPF relief: S$17,000.00
• Estimated chargeable income: S$67,000.00
• Estimated income tax: S$2,440.00
• Effective rate on gross: 2.87%
• Annual cash after CPF and tax: S$65,560.00

Practical tips

• SRS and CPF top-up relief save more tax the higher your marginal rate is.
• GST-registered businesses must show prices inclusive of GST to consumers, so a listed retail price already includes the 9%.
• Restaurant '++' prices add a 10% service charge first, then 9% GST on the total.
• Set aside a little each month so the tax bill is not a shock, or sign up for GIRO instalments with IRAS.

Background

Singapore taxes individuals on income earned in Singapore, with progressive rates for residents that start at 0% on the first S$20,000 of chargeable income and rise to 24% on income above S$1 million. Tax is assessed a year in arrears: income earned in 2025 is assessed in Year of Assessment 2026.

IRAS issues a notice of assessment, usually from April onwards, and tax is due within a month, although most people opt for interest-free GIRO instalments. Estimating your bill early means you can budget for it instead of being surprised.

Tax planning in Singapore is mostly about timing and reliefs rather than complex structures. Topping up CPF, contributing to SRS and claiming every relief you qualify for can lower your marginal rate band, and the savings are larger for higher earners.

Related calculations

• SRS Tax Savings Calculator: Shows how much tax you save by contributing to the Supplementary Retirement Scheme.
• CPF Cash Top-Up Tax Relief Calculator: Estimates the tax saved from Retirement Sum Topping-Up: up to S$8,000 for yourself and S$8,000 for family members.
• Rental (Lease) Stamp Duty Calculator: Calculates stamp duty on a tenancy agreement of four years or less at 0.4% of the total rent.
• Singapore Income Tax Calculator: Calculates resident individual income tax from YA2024 onwards using Singapore's progressive rates from 0% to 24%.

Want to skip the arithmetic? The free Salary Income Tax Estimator does all of this instantly and updates as you type.

Run your own numbers: Salary Income Tax Estimator