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Singapore Income Tax

An income tax is used to tax an individual's income or earnings. Income tax is typically calculated based on an individual's total revenue, and the rates may vary depending on the country's tax laws and income level. For Singapore, the tax rate starts at 2% and progressively increases the more you earn, up to 24%.

Are you working or earning in Singapore? If so, you might be liable to pay some income tax. Singapore uses a progressive personal income tax rate structure, just like many other developed countries, whereby individuals with higher incomes must pay a higher percentage of their income taxes. 

In YA2023, the income tax rate starts at 0% and maximizes at 22%. However, there has been a change in the income tax rate from YA2023. The changes to YA2024's income tax rate will start at 0% and max out at 24% for income over S$1,000,000. 

This guide aims to help you figure out your income tax in Singapore. Furthermore, if you're a business owner, this will help you understand more about the process for income tax filing of your employees.

Do I Have to Pay Personal Income Tax?

Paying your taxes is mandatory in Singapore as it helps to fund government spending on common resources. However, before you start filing your income tax, it is important to determine whether you need to pay income tax in Singapore. You must be a tax resident to be liable for personal income tax.

Am I a Tax Resident in Singapore?

If you are a Singapore Resident or a Singapore Permanent Resident (SPR) who normally resides in Singapore except for temporary absences, yes, you are a tax resident in Singapore.

If you are a foreigner, you will be considered a Singapore tax resident if you have stayed or worked in Singapore:

  1. For at least 183 days in the previous calendar year; or
  2. Continuously for 3 years, even if you have stayed for less than 183 days in the first and/or third year; or
  3. For a continuous period across 2 calendar years and the total period of stay is at least 183 days. This applies to employees who entered Singapore but excludes company directors, public entertainers, or professionals.

Note that the 183 days include your physical presence immediately before and after your employment. If none of the above requirements applies to you, then you will be treated as non-tax residents of Singapore for tax purposes.

🔎 Tip: For company directors, public entertainers, or professionals, please refer to our Withholding Tax guide in Singapore.

Individual Income Tax Rates

First up on the list, most people who land here would be most interested in the personal income tax rates. Below is the table for the personal income tax rate in Singapore.

Chargeable Income Income Tax Rate (%) Gross Tax Payable ($)
First $20,000
Next $10,000
0
2
0
200
First $30,000
Next $10,000
-
3.50
200
350
First $40,000
Next $40,000
-
7
550
2,800
First $80,000
Next $40,000
-
11.5
3,350
4,600
First $120,000
Next $40,000
-
15
7,950
6,000
First $160,000
Next $40,000
-
18
13,950
7,200
First $200,000
Next $40,000
-
19
21,150
7,600
First $240,000
Next $40,000
-
19.5
28,750
7,800
First $280,000
Next $40,000
-
20
36,550
8,000
First $320,000
Next $180,000
-
22
44,550
39,600
First $500,000
Next $500,000
-
23
84,150
115,000
First $1,000,000
Over $1,000,000
-
24
199,150

🔎 Tip:  For companies in Singapore, please refer to our Corporate Income Tax Rate guide in Singapore.

What are Considered Taxable Income?

Types of Taxable Income Description
Employment Income Your salary, director’s fee, commission, and other benefits.
Income received from overseas sources Income that was payable to you from an overseas source for a service or from the sale of goods.
Income received in the form of Government grants Grants such as:
∙ Wage Credit Payout
∙ Jobs Support Scheme
∙ COVID-19-related payouts
Receiving income in the form of digital currencies Such income will be liable to normal personal income tax rules.
Rent from property Rental income is subjected to personal income tax. However, you can also claim rental expenses to reduce taxable income.

What are Considered Non-Taxable Income?

Types of Taxable Income Description
Capital gains from sales of shares and property investments Gains derived from the sale of a property in Singapore. Usually not taxable unless you buy and sell property with a profit-seeking motive or are deemed to be trading in properties.
Central Provident Fund (CPF) Life Payouts Such payouts are not taxable
Lottery winnings Lottery winnings from 4D, TOTO, Horse betting, and Soccer betting are non-taxable.
Interest income from approved banks and finance companies licensed in Singapore These are non-taxable unless interest income is not from approved banks and finance companies licensed in or out of Singapore.

Tax Deductions and Reliefs for the Singapore Income Tax

Yes, there are many tax deductions, tax reliefs, and tax rebates available for Singapore personal income tax. For the full list of tax relief, you can refer to this table on the Inland Revenue Authority of Singapore (IRAS) website. You can refer to the table below which highlights more common and general tax relief options:

Types of Taxable Income Description
Course Fees Relief Up to $5,000
CPF Cash Top-up for Special, Retirement, or MediSave accounts $8,000 for self
$8,000 for family members
Up to a total of S$16,000
CPF Relief for Self-employed Individuals Capped at the lowest of:
1. 37% of your net trade income assessed; or
2. CPF relief cap of $37,740; or
3. The actual amount contributed by you
Earned Income Relief Depending on your age:
Below 55 - $1,000
55 to 59 - $6,000
60 and above - $8,000
Earn Income Relief for Handicapped Person Depending on your age:
Below 55 - $4,000
55 to 59 - $10,000
60 and above - $12,000
Handicapped Siblings Relief $5,500 for each handicapped sibling or sibling-in-law
Life Insurance Relief The lowest of the:
1. Difference between $5,000 and your CPF contribution; or
2. Up to 7% of your insured value

NSMan Relief Yourself - $1,500 or $3,500 (NS key command and staff appointment holders) if you did not perform NS activities the preceding year. $3,000 or $5,000 (NS key command and staff appointment holders) if you did. 

Wife - $750

Parent - $750 each for both mother and father
Parent Relief $9,000 per dependent if you stay with them or $5,500 per dependent if you are not staying with them
Handicapped Parent Relief $14,000 per dependent if you stay with them or $10,000 per dependent if you are not staying with them
Supplementary Retirement Scheme (SRS) Relief Residents - Lower of actual contribution or $15,300
Foreigners - Lower of actual contribution or $35,700

Singapore Tax Residents Categories

If you're liable for personal income tax payments in Singapore, you'll most likely fall under one of the three categories.

Receiving an SMS or Letter From the Inland Revenue Authority of Singapore (IRAS) Stating the Need to File

The content of the SMS or letter will usually tell you that you must file your personal income tax returns via myTax Portal. Remember to file it within the given time frame, as stated in the SMS or letter.

The process is pretty straightforward, follow the instructions after logging in to myTax Portal with your Singpass. If your employer is under the Auto-Inclusion Scheme (AIS), your salary and other information, such as CPF contributions, would have been pre-filled.

If you're a commission agent, private-hire car driver, or taxi driver, and your organization participates in the Pre-filing of Income for Self-Employed Persons Scheme, your income information from the particular organization would also be pre-filled.

Other fields, such as tax reliefs and additional income, would require your own filing.

💡 Tip: Check whether your employer is under the Auto-Inclusion Scheme (AIS).

Receiving an SMS or Letter from the Inland Revenue Authority of Singapore (IRAS) Stating That You Do Not Need to File

This tells you that you do not need to file for income tax. However, you will still need to log in to myTax Portal and check and acknowledge your filing for the year. Make sure to verify that all information that has been pre-filled is accurate. If you need to make any edits, you can log in to myTax Portal to edit it.

You Did Not Receive Any SMS or Letter

Most people would assume that you do not need to file for income tax. However, you will still need to file a tax return if your annual net business income exceeds S$6,000 or your annual income was more than S$22,000 last year.

After Filing Your Tax Returns

Next, you need to wait for IRAS to provide you with your Notice of Assessment (NOA) or tax bill. It will usually be sent to you by the end of April. The NOA will let you know how much income tax is payable. On top of that, you will be able to see the summary of your taxable income and total reliefs.

By any chance, if you find any inaccuracies in your NOA, you will need to inform IRAS through the "Object to Assessment" e-Service in myTax Portal within 30 days from the date stated on the NOA or tax bill. 

Final Thoughts

The Singapore income tax system is fair and reasonable, with many reliefs and schemes. Singapore tax residents, make sure you file and pay your income tax within the given time frame to avoid penalties. It is important to determine your tax residency status to find out if you are liable for the Singapore income tax.

A woman holding an ACRA Incorporation form for Singaporean companies.

FAQs

What is the Singapore income tax rate for YA2024?

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It starts at 0% and is capped at 24%.

What was the change from YA2023?

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How do I file for personal income tax returns in Singapore?

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Is there any personal income tax relief in Singapore?

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