Simple answer
Singapore income tax is calculated yearly, not directly deducted from monthly salary like CPF. For tax residents, tax is based on chargeable income after allowable reliefs.
How Singapore income tax works
For most employees, income tax starts with your annual employment income. Tax reliefs are then deducted to arrive at chargeable income.
1. Annual income
Your salary, bonus and other taxable employment income for the year.
2. Less tax reliefs
Common reliefs include CPF Relief, Earned Income Relief and family-related reliefs.
3. Chargeable income
Your tax is calculated on chargeable income using Singapore resident tax rates.
Singapore resident income tax rates
Singapore uses progressive tax rates for tax residents. This means higher income bands are taxed at higher rates.
| Chargeable Income Band | Tax Rate | Simple Meaning |
|---|---|---|
| First S$20,000 | 0% | No tax on the first S$20,000 of chargeable income. |
| Next S$10,000 | 2% | Income from S$20,001 to S$30,000. |
| Next S$10,000 | 3.5% | Income from S$30,001 to S$40,000. |
| Next S$40,000 | 7% | Income from S$40,001 to S$80,000. |
| Next S$40,000 | 11.5% | Income from S$80,001 to S$120,000. |
| Next S$40,000 | 15% | Income from S$120,001 to S$160,000. |
| Next S$40,000 | 18% | Income from S$160,001 to S$200,000. |
| Next S$40,000 | 19% | Income from S$200,001 to S$240,000. |
| Next S$40,000 | 19.5% | Income from S$240,001 to S$280,000. |
| Next S$40,000 | 20% | Income from S$280,001 to S$320,000. |
| Next S$180,000 | 22% | Income from S$320,001 to S$500,000. |
| Next S$500,000 | 23% | Income from S$500,001 to S$1,000,000. |
| Above S$1,000,000 | 24% | Highest marginal tax rate for high chargeable income. |
This table is for general salary planning. Always refer to IRAS for official tax rates and your actual Notice of Assessment.
Resident vs non-resident income tax
Your tax residency can affect how your employment income is taxed.
Tax resident
Usually taxed using progressive resident tax rates after eligible reliefs.
Non-resident
Employment income may be taxed differently, commonly at 15% or resident rates, whichever is higher.
Why it matters
Tax residents may claim personal reliefs, while non-resident treatment is usually more limited.
Simple income tax example
This example shows how tax is estimated after CPF and tax reliefs.
| Item | Example Amount |
|---|---|
| Monthly salary | S$5,000 |
| Annual salary | S$60,000 |
| Less: estimated employee CPF Relief | S$12,000 |
| Less: Earned Income Relief | S$1,000 |
| Estimated chargeable income | S$47,000 |
| Estimated resident tax | Based on progressive tax rates |
Common tax reliefs for employees
Tax reliefs reduce your chargeable income. The most common reliefs for employees are usually CPF Relief and Earned Income Relief.
| Relief | Common Amount | Who may qualify |
|---|---|---|
| CPF Relief | Based on qualifying CPF contributions | Singapore Citizen / PR employees making qualifying CPF contributions. |
| Earned Income Relief | Usually S$1,000 if below age 55 | Individuals with earned income from employment, trade, business or profession. |
| Spouse Relief | Up to S$2,000 | Taxpayers supporting a qualifying spouse. |
| Parent Relief | Up to S$9,000, depending on circumstances | Taxpayers supporting qualifying parents, grandparents or parents-in-law. |
| Qualifying Child Relief | S$4,000 per qualifying child | Parents supporting qualifying children. |
For a simple salary calculator estimate, if you are not sure about your reliefs, use S$0. If you want a more realistic employee estimate, start with annual employee CPF plus Earned Income Relief.
Related Singapore calculators
Use these calculators to estimate income tax, CPF and take-home pay.
Related Singapore guides
Learn more about salary, CPF and tax reliefs in Singapore.
Why use this guide?
This guide is written for simple salary and tax planning.
Simple explanation
Understand income tax without reading long technical tax pages.
Calculator friendly
Designed to work together with the Singapore Salary Calculator and Income Tax Calculator.
Singapore focused
Focused on Singapore employment income, CPF, tax relief and resident tax planning.
Frequently Asked Questions
Is Singapore income tax deducted monthly?
Singapore income tax is generally assessed annually. It is not deducted monthly from salary in the same way as CPF.
What is chargeable income?
Chargeable income is your taxable income after deducting allowable reliefs. Singapore resident tax rates are applied to chargeable income.
Do I pay tax on CPF contributions?
Qualifying employee CPF contributions may be considered for CPF Relief, which can reduce chargeable income for eligible taxpayers.
Do foreigners pay income tax in Singapore?
Yes, foreigners working in Singapore may pay income tax. The treatment depends on tax residency and employment arrangement.
What tax relief amount should I enter?
If you are not sure, enter S$0 for a conservative estimate. For a simple employee estimate, you may start with annual employee CPF plus Earned Income Relief.
Where can I check my official tax payable?
Check your IRAS tax filing details and Notice of Assessment for the official tax amount.