Money
How income tax and CPF work in Singapore
Singapore residents pay low progressive tax, and citizens and PRs also save into the CPF from every pay.
Singapore taxes residents on chargeable income, which is your income after reliefs such as CPF relief and Earned Income Relief. Rates start at 0% and rise to 24% above $1 million. Employees who are citizens or permanent residents also pay CPF contributions, which fund retirement, housing and healthcare.
Resident tax rates (from the Year of Assessment 2024)
| Chargeable income | Rate | Tax at the top of the band |
|---|---|---|
| First $20,000 | 0% | $0 |
| Next $10,000 | 2% | $200 |
| Next $10,000 | 3.5% | $550 |
| Next $40,000 | 7% | $3,350 |
| Next $40,000 | 11.5% | $7,950 |
| Next $40,000 | 15% | $13,950 |
| Next $40,000 | 18% | $21,150 |
| Next $40,000 | 19% | $28,750 |
| Next $40,000 | 19.5% | $36,550 |
| Next $40,000 | 20% | $44,550 |
| Next $180,000 | 22% | $84,150 |
| Next $500,000 | 23% | $199,150 |
| Above $1,000,000 | 24% |
💡 Pro Tip: Rebates can lower the tax payable in some years, and IRAS publishes them separately. Check IRAS for the current year.
CPF contribution rates from 1 January 2026
| Age | Employer | Employee |
|---|---|---|
| 55 and below | 17% | 20% |
| Above 55 to 60 | 16% | 18% |
| Above 60 to 65 | 12.5% | 12.5% |
| Above 65 to 70 | 9% | 7.5% |
| Above 70 | 7.5% | 5% |
💡 Pro Tip: These rates apply to Singapore Citizens and PRs from their third year, on wages above $750 a month, up to a monthly ceiling of $8,000.
Worked example: $6,000 a month
At age 40, income is $72,000 a year. Employee CPF of 20% is $14,400, which is tax-relieved. With $1,000 of Earned Income Relief, chargeable income is $56,600 and tax is $550 + 7% × ($56,600 − $40,000) = $1,712. Take-home pay is $55,888 a year, about $4,657 a month.
✨ Key Takeaways
- Singapore's resident tax rates are progressive, from 0% to 24%.
- CPF rates depend on your age and residency.
- CPF contributions are tax-relieved.
- Check IRAS and the CPF Board for the current year.