SRS Tax Savings Formula Explained, With Examples
Every srs tax savings result comes from one formula. Once you understand what goes into it, you can sanity-check any figure you are given, whether by an employer, a bank, a teacher or another website.
The formula
Tax saved = tax(chargeable income) − tax(chargeable income − SRS contribution).
What each input means
- Chargeable income before SRS (S$): the value you enter in the calculator.
- SRS contribution (S$): the value you enter in the calculator.
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$1,759.50
How the result changes
The table keeps the other inputs at their example values and changes chargeable income before srs (s$).
| Chargeable income before SRS (S$) | Tax without SRS | Tax with SRS | Tax saved |
|---|---|---|---|
| 120,000 | S$7,950.00 | S$6,190.50 | S$1,759.50 |
| 60,000 | S$1,950.00 | S$879.00 | S$1,071.00 |
| 90,000 | S$4,500.00 | S$2,979.00 | S$1,521.00 |
| 150,000 | S$12,450.00 | S$10,155.00 | S$2,295.00 |
| 180,000 | S$17,550.00 | S$14,796.00 | S$2,754.00 |
Why it matters
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.
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
- 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.
Use the SRS Tax Savings Calculator to plug in your own numbers.
Run your own numbers: SRS Tax Savings Calculator