Salary Income Tax in Singapore: Your Questions Answered
These are the questions people ask most often about salary income tax. Each answer is short; follow the links for the full detail.
What does a salary income tax calculation tell me?
Estimates a resident employee's annual income tax from monthly salary and bonus, allowing for CPF relief and earned income relief.
What is the formula?
Chargeable income = annual gross − employee CPF (relief capped at S$37,740) − earned income relief (S$1,000 below 55). Tax then follows the resident rate bands.
What do I need to enter?
Monthly salary (S$), Annual bonus (S$), Age (years).
Is this the same as my IRAS bill?
It is an estimate based on the published rates. Your notice of assessment will reflect all reliefs, rebates and income IRAS holds for you.
Can you show an example?
For example, with these inputs:
- Monthly salary (S$): 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
Any tips?
- GST-registered businesses must show prices inclusive of GST to consumers, so a listed retail price already includes the 9%.
- Keep receipts and records for at least five years in case IRAS asks for them.
- Personal income tax relief is capped at S$80,000 a year in total.
Background
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.
The Goods and Services Tax rose from 8% to 9% on 1 January 2024. Businesses with taxable turnover above S$1 million must register, and GST-registered retailers must quote prices to consumers inclusive of GST, so most shelf prices already include it.
You are generally a tax resident if you are a citizen or PR who normally lives here, or a foreigner who has stayed or worked in Singapore for at least 183 days in the calendar year. Non-residents do not get personal reliefs and are taxed differently, which is why residency status matters so much for expatriates.
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%.
Try it yourself with the Salary Income Tax Estimator.
Run your own numbers: Salary Income Tax Estimator