Singapore Personal Income Tax in 2026: Salary Rates, Filing Steps and a Worked Example for Employees

How much of your salary actually goes to Singapore income tax in 2026? Many newcomers are surprised by how low the answer is: a resident employee earning S$70,000 a year pays S$1,600, an effective rate of about 2.3%, in our example assuming S$14,000 in qualifying CPF contributions and S$1,000 in earned income relief.

In this blog, we explain Singapore personal income tax rates for the Year of Assessment (YA) 2026. We cover residency, reliefs, filing deadlines, foreign employees and a worked example for your own estimate.

How Does Singapore's Progressive Tax System Work?

Resident employees pay progressive rates from 0% to 24%, with no change to the bands for YA 2026.

Singapore taxes individuals on a progressive scale, so higher earnings attract higher marginal rates only on the top dollars. The YA 2026 covers income earned between 1 January and 31 December 2025, and you declare it in 2026.

Budget 2026 confirmed no change to personal income tax rates and no rebate for YA 2026. This follows the one-off 60% SG60 rebate for YA 2025, which was capped at S$200. IRAS publishes the complete resident tax bands.

Because the first S$20,000 of chargeable income attracts no tax, effective rates stay low even as salaries climb. The next two bands are taxed at 2% and 3.5%. The top rate of 24% applies only to chargeable income above S$1 million.

According to the Inland Revenue Authority of Singapore (IRAS), these progressive rates apply to resident individuals from YA 2024 onwards, including YA 2026.

Who Counts as a Tax Resident in Singapore?

Day count is important, but ordinary residence and administrative concessions also matter; anyone who lives or works in Singapore for 183 days or more during 2025 is a tax resident for YA 2026.

Your tax residency depends on your circumstances, including ordinary residence, days in Singapore and applicable two- or three-year administrative concessions, rather than your passport alone. For YA 2026, the tax authority looks at the days you lived or worked in Singapore during 2025.

The distinction matters because residents enjoy progressive rates and personal reliefs, while non-residents face different rates and cannot claim personal reliefs. Non-resident employment income is taxed at 15% or at the resident progressive rates, whichever produces a higher tax. Most other income, such as rent from a Singapore property, is taxed at a flat 24% under the Income Tax Act 1947 for YA 2024 and later years.

1. Citizens and permanent residents of Singapore

If you are a citizen or permanent resident (PR) residing in Singapore, you are a tax resident, even during a temporary absence for studies or holidays. Taxable income accrued in or derived from Singapore is generally taxed at progressive rates; foreign-sourced income received in Singapore is generally exempt, subject to exceptions.

2. Foreigners who stay 183 days or more

A foreign employee who lives or works in Singapore for at least 183 days in a calendar year becomes a tax resident for that year of assessment. You then file as a resident and can claim reliefs like any local employee.

3. The two-year administrative concession

A foreign employee may be treated as a resident for both years if employment straddles two calendar years and the qualifying continuous period of employment and immediately adjoining physical presence is at least 183 days; exclusions apply. This prevents an awkward split when a long posting straddles a calendar year boundary.

How Do Reliefs and Rebates Reduce Your Tax Bill?

Reliefs shrink your chargeable income before tax is computed, with all personal reliefs capped at a combined S$80,000 per year of assessment.

Tax payable is not simply salary multiplied by a rate. Employment income first gives way to deductions and reliefs, and tax is then charged on the remaining chargeable income. Salaried employees most commonly rely on the categories below.

1. Reliefs most salaried employees claim

For eligible workers under 55, earned income relief is generally up to S$1,000, with a higher maximum for those who qualify for disability relief. Higher amounts apply to older workers. CPF relief covers qualifying mandatory employee contributions, subject to CPF wage ceilings. Other reliefs may apply to a spouse, children, life insurance premiums and Supplementary Retirement Scheme (SRS) contributions. Qualifying local donations to approved institutions of a public character generally receive a deduction of 2.5 times the qualifying amount, while other donation schemes may have different deduction rates.

2. The S$80,000 personal relief cap

You may claim multiple reliefs, but the total is capped at S$80,000 per year of assessment. Once your claims reach the ceiling, further relief yields no additional tax saving, so the order and mix of claims matter for higher earners.

3. Rebates and Budget 2026 household support

YA 2026 carries no personal income tax rebate. Singapore citizen households could claim S$500 in Community Development Council (CDC) vouchers from June 2026. The distribution was brought forward from January 2027. From 1 January 2027, total CPF contribution rates rise by 1.5 percentage points for workers above 55 to 60. The increase is one percentage point for workers above 60 to 65. Increased contributions go to retirement savings. An automatic transition offset covers half the employer-side increase.

What Are the Steps for Singapore Income Tax Filing?

For YA 2026, e-file between 1 March and 18 April 2026, then generally pay within one month of your Notice of Assessment.

Most employers now transmit salary data to the tax authority under the Auto-Inclusion Scheme (AIS), so much of your return arrives pre-filled. Residents file Form B1; non-residents file Form M, while self-employed residents file Form B. Taxpayers selected for the No-Filing Service generally need not file if their pre-filled details are complete and correct, but must report omitted income or incorrect relief claims.

If your details are pre-filled, you should still log in to verify them before the deadline. Many employees prefer to outsource the process: our Singapore taxation services handle personal filing end to end, with submission support from S$545 with GST.

The steps below cover the full filing journey for a salaried employee.

Step 1: Log in to the myTax Portal with Singpass

Sign in using Singpass, the national digital identity. Pass holders such as Employment Pass holders can register for Singpass using their Foreign Identification Number (FIN).

Step 2: Verify your pre-filled income

Confirm that your employer reported your salary, bonus and CPF contributions correctly under the Auto-Inclusion Scheme. Errors here flow straight through to your assessment.

Step 3: Claim your reliefs

Check pre-filled reliefs and deductions, and enter or amend eligible claims where necessary; CPF contributions reported by AIS employers and qualifying donations reported by approved charities are generally auto-included. The portal computes your chargeable income automatically as you complete each claim.

Step 4: File your return by 18 April 2026

Start Form B1 if you are a resident employee, or Form M if you are a non-resident, before the e-filing deadline. Late filing can lead to an estimated assessment, an offer of composition or court action.

Step 5: Check your Notice of Assessment and pay on time

Your Notice of Assessment (NOA) states the final tax due. Pay within one month of the NOA date, unless you have an approved instalment plan, to avoid late-payment penalties.

How Does Singapore Tax Foreign Employees?

Non-resident employment of 60 days or less in a calendar year is generally exempt. Employees who stay or work for 61 to 182 days may qualify for residency under applicable concessions; otherwise, non-resident employment income is generally taxed at 15% or resident rates, whichever is higher. Staying or working for 183 days or more in a calendar year generally confers residency.

Singapore tax for foreign employees follows the length of the assignment rather than the passport held. A few days either side of a threshold can change the entire treatment, so day-counting is genuine planning work.

The Ministry of Manpower (MOM) also sets work pass salary thresholds that determine who can be employed here at all. Employers evaluating global accounting networks for regional expansion often ask us how these thresholds affect posting decisions across their group.

1. Short stays of 60 days or less

A non-resident who performs employment in Singapore for 60 days or less in a calendar year is generally exempt from tax on that employment income. The exemption does not extend to company directors, public entertainers or non-resident professionals such as consultants.

2. Stays of 61 to 182 days

Employees who stay or work in Singapore for 61 to 182 days in a calendar year may qualify as residents under applicable two- or three-year concessions. Otherwise, non-resident employment income is taxed at 15% or at resident progressive rates, whichever produces more tax. Most other income is taxed at 24%.

3. Work pass salary thresholds from 2027

The minimum qualifying salary for a new Employment Pass rises from S$5,600 to S$6,000 from January 2027, or from S$6,200 to S$6,600 in the financial sector, with renewals following from January 2028. The S Pass threshold rises from S$3,300 to S$3,600, or S$3,800 to S$4,000 in the financial sector. Age-based adjustments apply on top of these figures.

4. Tax clearance before you leave

When a foreign employee ceases employment or departs Singapore, the employer must file Form IR21 for tax clearance at least one month in advance. The tax authority then confirms whether any tax is due before the employee leaves.

What Would a Resident Employee Actually Pay in YA 2026?

In this example, a resident earning S$70,000 pays S$1,600 for YA 2026, or roughly 2.3% of gross salary.

Here is a full worked example using a typical salaried employee. Assume a single Singapore citizen under 55, resident for tax purposes, earning S$70,000 in 2025. Assume full CPF rates apply and eligible mandatory employee contributions total S$14,000.

The gross salary of S$70,000 is reduced by earned income relief of S$1,000 and CPF relief. The assumed S$14,000 in mandatory employee CPF contributions qualifies for relief. That leaves chargeable income of S$55,000.

The first S$20,000 is tax-free. The next S$10,000 is taxed at 2%, producing S$200. The following S$10,000 is taxed at 3.5%, producing S$350. The remaining S$15,000 is taxed at 7%, producing S$1,050. Total tax for YA 2026 is S$1,600.

Note the marginal effect: every additional dollar of chargeable income up to S$80,000 is taxed at only 7%. Complexities such as stock options, rental income, director's fees or an overseas posting can change the picture materially. If any of these apply to you, contact us for a review of your specific position.

Conclusion

Resident rates for YA 2026 remain at 0% to 24%, with no general personal income tax rebate. Singapore citizen households could claim S$500 in CDC vouchers from June 2026, brought forward from January 2027. Residency depends on circumstances including days in Singapore and applicable concessions. Non-resident employment income is generally taxed at 15% or resident rates, whichever produces more tax, while most other income is taxed at 24%.

We help resident and foreign employees with Singapore income tax filing. Our support covers reliefs, Forms B and B1, and tax clearance for departing staff. As part of 3E Accounting Global, our team draws on member firms across six continents to support individuals and businesses wherever they operate.

If you would like a review of your YA 2026 tax position, we are ready to help you file accurately and on time.

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