Singapore's income tax calculation is refreshingly simple by international standards — no capital gains tax, tax-exempt dividends, and one clean set of progressive rates. Here's the full sequence.
Add up your assessable income
Employment income, trade/business income, and rental income (net of allowable expenses) combine into your assessable income for the preceding calendar year — remember, Singapore's Year of Assessment (YA) is based on income earned in the prior year.
Subtract personal reliefs
Earned Income Relief, CPF Relief (your own CPF contributions), and other reliefs you qualify for (spouse, child, parent, course fees) are subtracted to arrive at chargeable income. Total reliefs are capped at $80,000/year.
Apply the progressive resident rates
Chargeable income is taxed progressively from 0% (first $20,000) up to 24% (above $1,000,000). See our full rate table.
Worked example
| Item | Amount |
|---|---|
| Annual salary | $80,000 |
| CPF Relief + Earned Income Relief (approx.) | − $17,000 |
| Chargeable income | $63,000 |
| Income tax (YA2026 rates) | ≈ $2,010 |
Get your exact chargeable income and tax estimate.
Use the Annual Income Tax Calculator →What makes Singapore's system distinctive
- No capital gains tax — gains from selling shares or property (as an individual investor) aren't taxed
- Dividends from Singapore companies are tax-exempt — the one-tier corporate tax system means the company already paid tax, so shareholders don't pay again
- Tax is assessed and paid annually, not withheld from your monthly paycheck — only CPF affects your take-home pay directly
This is a simplified walkthrough — it doesn't cover every relief or edge case. For your exact figure, use our calculator or refer to IRAS directly.