SRS Tax Savings in Singapore: Your Questions Answered
These are the questions people ask most often about srs tax savings. Each answer is short; follow the links for the full detail.
What does a srs tax savings calculation tell me?
Shows how much tax you save by contributing to the Supplementary Retirement Scheme. The cap is S$15,300 a year for citizens and PRs and S$35,700 for foreigners.
What is the formula?
Tax saved = tax(chargeable income) − tax(chargeable income − SRS contribution).
What do I need to enter?
Chargeable income before SRS (S$), SRS contribution (S$).
Is this the same as my IRAS bill?
It is an estimate based on the published rates. Your notice of assessment will reflect all reliefs, rebates and income IRAS holds for you.
Can you show an example?
For example, with these inputs:
- Chargeable income before SRS (S$): 120,000
- SRS contribution (S$): 15,300
the calculator returns:
- Tax without SRS: S$7,950.00
- Tax with SRS: S$6,190.50
- Tax saved: S$1,759.50
Any tips?
- Non-residents cannot claim personal reliefs, which is why their effective rate is usually higher.
- Set aside a little each month so the tax bill is not a shock, or sign up for GIRO instalments with IRAS.
- SRS and CPF top-up relief save more tax the higher your marginal rate is.
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.
Reliefs lower chargeable income before rates apply. Common ones include earned income relief, CPF relief for employee contributions, parent and handicapped parent relief, working mother's child relief, NSman relief, course fees relief, and relief for SRS contributions and CPF cash top-ups. Total personal reliefs are capped at S$80,000 a year.
Related calculations
- Salary Income Tax Estimator: Estimates a resident employee's annual income tax from monthly salary and bonus, allowing for CPF relief and earned income relief.
- Non-Resident Income Tax Calculator: Non-resident employees pay the higher of 15% flat or progressive resident rates on employment income, without personal reliefs.
- GST Calculator (9%): Adds Singapore's 9% Goods and Services Tax to a price.
- Remove GST Calculator (Reverse GST): Works backwards from a GST-inclusive price to show how much of it is GST.
Try it yourself with the SRS Tax Savings Calculator.
Run your own numbers: SRS Tax Savings Calculator