Introduction
Singapore has a progressive income tax system, which means that the tax rate increases as your income increases. The current income tax rates for the Year of Assessment (YA) 2023 are as follows:
| Chargeable Income | Income Tax Rate |
|---|---|
| Up to S$20,000 | 0% |
| S$20,001 – S$40,000 | 2% |
| S$40,001 – S$80,000 | 5% |
| S$80,001 – S$120,000 | 7% |
| S$120,001 – S$160,000 | 9% |
| S$160,001 – S$200,000 | 11% |
| S$200,001 – S$250,000 | 13% |
| S$250,001 – S$300,000 | 15% |
| S$300,001 – S$400,000 | 17% |
| S$400,001 and above | 19% |
Calculating Your Income Tax
To calculate your income tax, you will need to know your chargeable income. Your chargeable income is your total income minus any allowable deductions and reliefs.
Allowable deductions are expenses that you can deduct from your income before calculating your tax. Some common allowable deductions include:
- CPF contributions
- Donations to approved charities
- Life insurance premiums
- Education expenses
- Medical expenses
Reliefs are reductions in your tax liability. Some common reliefs include:
- Personal relief
- Earned income relief
- Wife relief
- Child relief
Once you have calculated your chargeable income, you can use the income tax rates above to calculate your income tax.
Example
Let’s say that your total income for the YA 2023 is S$60,000. You also have the following allowable deductions and reliefs:
- CPF contributions: S$10,000
- Donation to approved charity: S$2,000
- Personal relief: S$5,000
Your chargeable income would be:
Total income: S$60,000
Less: Allowable deductions
CPF contributions: S$10,000
Donation to approved charity: S$2,000
Total allowable deductions: S$12,000
Chargeable income: S$60,000 - S$12,000 = S$48,000
Using the income tax rates above, your income tax would be:
Chargeable income: S$48,000
Income tax rate: 5%
Income tax: S$48,000 x 5% = S$2,400
Conclusion
Calculating your income tax in Singapore can be a bit daunting, but it is important to understand how it works so that you can make sure that you are paying the correct amount of tax. If you have any questions, you can always contact the Inland Revenue Authority of Singapore (IRAS) for assistance.
- Income Tax Singapore 2025
- How to Calculate Income Tax in Singapore
- Income Tax Rates Singapore
- Allowable Deductions Income Tax Singapore
- Income Tax Reliefs Singapore
- What is the income tax rate in Singapore for 2025?
The income tax rates for the YA 2025 are the same as the rates for the YA 2023.
- What are some common allowable deductions for income tax in Singapore?
Some common allowable deductions include CPF contributions, donations to approved charities, life insurance premiums, education expenses, and medical expenses.
- What are some common reliefs for income tax in Singapore?
Some common reliefs include personal relief, earned income relief, wife relief, and child relief.
- How can I get help with calculating my income tax in Singapore?
You can contact the Inland Revenue Authority of Singapore (IRAS) for assistance.
- What is the penalty for not paying income tax in Singapore?
The penalty for not paying income tax in Singapore is a fine of up to S$1,000 and/or imprisonment for up to 3 years.
- What is the deadline for filing income tax in Singapore?
The deadline for filing income tax in Singapore is April 15th.
- Can I file my income tax online?
Yes, you can file your income tax online through the IRAS website.
- What happens if I make a mistake on my income tax return?
If you make a mistake on your income tax return, you can amend it by submitting a revised return. You may need to pay additional tax if you have underpaid your taxes.
