Singapore income tax works in four steps. Start with your income for the year, subtract allowable expenses and donations, subtract personal reliefs, then apply the progressive resident rates of 0% to 24% to what is left, your chargeable income.
Most employees pay far less than their top rate suggests. Below are the YA 2027 rates, each step in plain terms, and a worked example on a S$72,000 salary.
How Income Tax Works in Singapore: The Preceding-Year Basis
IRAS taxes income one year in arrears. Income earned from 1 January to 31 December 2026 is assessed in Year of Assessment (YA) 2027. You file in March to April 2027 and receive your tax bill, the Notice of Assessment, after that.
The rates below apply to tax residents: Singapore Citizens and Permanent Residents who normally live here, and foreigners who meet IRAS’s residency tests, such as staying or working here for at least 183 days in the year. Non-residents are taxed differently; see our guide to tax residency and the 183-day rule.
The Four Steps From Income to Tax
IRAS’s tax bill uses these terms:
- Total income. Employment income, net business income, net rental income and other taxable income.
- Assessable income. Total income minus allowable expenses and approved donations. Donations to approved charities are deducted at 2.5 times the amount.
- Chargeable income. Assessable income minus personal reliefs, such as Earned Income Relief, CPF relief and child or parent reliefs. All reliefs together are capped at $80,000 a year.
- Tax payable. The resident rates applied to chargeable income, minus any rebates such as the Parenthood Tax Rebate.
The short version: Rates apply to chargeable income, not salary. Reliefs come off first, and each rate applies only to the slice of income inside its band.
Resident Income Tax Rates for YA 2027
IRAS publishes one table for YA 2024 onwards. No change has been announced for YA 2027, so it applies to income earned in 2026.
| Chargeable income | Rate | Tax on this band | Cumulative tax |
|---|---|---|---|
| First $20,000 | 0% | $0 | $0 |
| Next $10,000 (to $30,000) | 2% | $200 | $200 |
| Next $10,000 (to $40,000) | 3.5% | $350 | $550 |
| Next $40,000 (to $80,000) | 7% | $2,800 | $3,350 |
| Next $40,000 (to $120,000) | 11.5% | $4,600 | $7,950 |
| Next $40,000 (to $160,000) | 15% | $6,000 | $13,950 |
| Next $40,000 (to $200,000) | 18% | $7,200 | $21,150 |
| Next $40,000 (to $240,000) | 19% | $7,600 | $28,750 |
| Next $40,000 (to $280,000) | 19.5% | $7,800 | $36,550 |
| Next $40,000 (to $320,000) | 20% | $8,000 | $44,550 |
| Next $180,000 (to $500,000) | 22% | $39,600 | $84,150 |
| Next $500,000 (to $1 million) | 23% | $115,000 | $199,150 |
| Above $1 million | 24% |
There is no Personal Income Tax Rebate for YA 2026, and none has been announced for YA 2027. Our summary of Budget 2026’s personal income tax changes covers what does change for YA 2027.
Worked Example: A $72,000 Salary in 2026
Illustration only. A 35-year-old employee earns $6,000 a month in 2026, $72,000 for the year, with no bonus and no other income.
| Step | Amount |
|---|---|
| Employment income | $72,000 |
| Less: Earned Income Relief (below 55) | $1,000 |
| Less: CPF relief (20% employee share of $72,000) | $14,400 |
| Chargeable income | $56,600 |
| Tax on first $40,000 | $550 |
| Tax on next $16,600 at 7% | $1,162 |
| Tax payable for YA 2027 | $1,712 |
Her marginal rate is 7%: each extra dollar of chargeable income costs 7 cents in tax. Her effective rate is about 2.4% of her $72,000 salary.
The 20% employee CPF rate applies to those aged 55 and below in 2026, according to the CPF Board, on wages up to the $8,000 monthly ceiling. Earned Income Relief is given automatically. Our take-home pay calculator shows the monthly CPF deduction, and the income tax calculator runs the full calculation.
Marginal Rate vs Effective Rate
The marginal rate matters when you are deciding on a relief. A $1,000 SRS contribution saves $70 for someone in the 7% band and $115 for someone in the 11.5% band.
The effective rate is what you actually pay as a share of income. Because the first $20,000 is taxed at 0% and reliefs come off first, it is well below the marginal rate for most people. Our worked example on how to reduce income tax legally shows how reliefs move both.
What Is Not Taxed
IRAS does not tax several common types of income for individuals, including:
- dividends from Singapore companies under the one-tier system
- interest on deposits with approved banks in Singapore
- CPF LIFE payouts
- most foreign income received in Singapore by tax residents
Details are in our guide to tax on CPF LIFE, dividends and overseas income.
What To Do Next
- Find your chargeable income on last year’s Notice of Assessment to see which band you are in.
- Run your 2026 figures through the income tax calculator.
- Check the full list of personal tax reliefs you may be missing.
- For unusual income, such as overseas work or business income, check IRAS’s guidance or ask a qualified tax professional.
