The Singapore government has implemented a progressive tax system, meaning that the country’s various income levels are taxed at different rates. This article will discuss how to calculate Singapore income tax with examples.
Taxable Income Defined
Regardless of whether or not an individual resides in Singapore, generally the salary you have received is taxable.
The salary refers to the payment (in cash or other forms) received for the services you have provided as an employee to your employer. For Singapore residents, foreign-sourced income is subject to taxation only if it is obtained in Singapore through a Singapore-based partnership.
Residents are eligible for specific personal allowances and are covered by graduated tax rates from 0% to 22% (24% beginning from year of assessment 2024). Meanwhile, non-residents are not eligible for any personal allowances and must pay a flat rate of 22% (24% from the year of assessment 2024).
With this tax break, non-residents pay either a flat rate of 15% on their job income or the graduated resident rates, whichever is higher.
Resident and Non-Resident Personal Income Tax Rates
The resident individual tax rates in Singapore are progressive. If your yearly income is S$22,000 or more, you are required by law to file a personal tax return. If your yearly income is less than S$22,000, you can avoid filing a personal tax return. However, if the Singapore tax authorities have notified you to submit your tax return, you must do so.
The standard tax rate for non-residents is 22% (24% as of the year of assessment 2024), with the exception of employment income, which is taxed either at a flat rate of 15% or at resident rates. All payments to a non-resident director are subject to withholding tax (WHT) at the standard rate of 22% (24% from 2024).
Corporate Income Tax Rates
Singapore requires any company’s corporate tax return to be filed by all business owners, regardless of whether they are Singapore residents or non-residents. Your corporation will be subject to a flat 17% tax rate on its net chargeable income, as determined by the Inland Revenue Authority of Singapore (IRAS).
How To Calculate Singapore Income Tax
Using the IRAS income tax table, you may determine your personal income tax obligation:
For YA 2014 to YA 2016
| Chargeable Income | Income Tax Rate (%) | Gross Tax Payable ($) |
| First $20,000 Next $10,000 | 0 2 | 0 200 |
| First $30,000 Next $10,000 | – 3.50 | 200 350 |
| First $40,000 Next $40,000 | – 7 | 550 2,800 |
| First $80,000 Next $40,000 | – 11.5 | 3,350 4,600 |
| First $120,000 Next $40,000 | – 15 | 7,950 6,000 |
| First $160,000 Next $40,000 | – 17 | 13,950 6,800 |
| First $200,000 Next $120,000 | – 18 | 20,750 21,600 |
| First $320,000 In excess of $320,000 | – 20 | 42,350 |
|
| Chargeable Income | Income Tax Rate (%) | Gross Tax Payable ($) |
| First $20,000 Next $10,000 | 0 2 | 0 200 |
| First $30,000 Next $10,000 | – 3.50 | 200 350 |
| First $40,000 Next $40,000 | – 7 | 550 2,800 |
| First $80,000 Next $40,000 | – 11.5 | 3,350 4,600 |
| First $120,000 Next $40,000 | – 15 | 7,950 6,000 |
| First $160,000 Next $40,000 | – 17 | 13,950 6,800 |
| First $200,000 Next $120,000 | – 18 | 20,750 21,600 |
| First $320,000 In excess of $320,000 | – 20 | 42,350 |
For YA 2014 to YA 2016
| Chargeable Income | Income Tax Rate (%) | Gross Tax Payable ($) |
| First $20,000 Next $10,000 | 0 2 | 0 200 |
| First $30,000 Next $10,000 | – 3.50 | 200 350 |
| First $40,000 Next $40,000 | – 7 | 550 2,800 |
| First $80,000 Next $40,000 | – 11.5 | 3,350 4,600 |
| First $120,000 Next $40,000 | – 15 | 7,950 6,000 |
| First $160,000 Next $40,000 | – 17 | 13,950 6,800 |
| First $200,000 Next $120,000 | – 18 | 20,750 21,600 |
| First $320,000 In excess of $320,000 | – 20 | 42,350 |
|
From YA 2017 to YA 2023
| Chargeable Income | Income Tax Rate (%) | Gross Tax Payable ($) |
| First $20,000 Next $10,000 | 0 2 | 0 200 |
| First $30,000 Next $10,000 | – 3.50 | 200 350 |
| First $40,000 Next $40,000 | – 7 | 550 2,800 |
| First $80,000 Next $40,000 | – 11.5 | 3,350 4,600 |
| First $120,000 Next $40,000 | – 15 | 7,950 6,000 |
| First $160,000 Next $40,000 | – 18 | 13,950 7,200 |
| First $200,000 Next $40,000 | – 19 | 21,150 7,600 |
| First $240,000 Next $40,000 | – 19.5 | 28,750 7,800 |
| First $280,000 Next $40,000 | – 20 | 36,550 8,000 |
First $320,000 In excess of $320,000 | – 22 | 44,550 |
From YA 2024 onwards
| Chargeable Income | Income Tax Rate (%) | Gross Tax Payable ($) |
| First $20,000 Next $10,000 | 0 2 | 0 200 |
| First $30,000 Next $10,000 | – 3.50 | 200 350 |
| First $40,000 Next $40,000 | – 7 | 550 2,800 |
| First $80,000 Next $40,000 | – 11.5 | 3,350 4,600 |
| First $120,000 Next $40,000 | – 15 | 7,950 6,000 |
| First $160,000 Next $40,000 | – 18 | 13,950 7,200 |
| First $200,000 Next $40,000 | – 19 | 21,150 7,600 |
| First $240,000 Next $40,000 | – 19.5 | 28,750 7,800 |
| First $280,000 Next $40,000 | – 20 | 36,550 8,000 |
First $320,000 | – 22 | 44,550 39,600 |
| First $500,000 Next $500,000 | – 23 | 84,150 115,000 |
| First $1,000,000 In excess of $1,000,000 | – 24 | 199,150 |
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Frequently Asked Questions
In Singapore, the resident tax rate begins at 0% and rises to 22% for income over S$320,000 (23% for income over S$500,000 and 24% for income over S$1,000,000 from year of assessment 2024). Neither capital gains nor inheritance is subject to taxation. A person’s salary while working abroad is exempt from taxation in a few circumstances.
Employment income is taxed at a flat rate of 15% or at the resident rate, whichever is greater.
Expat earnings from sources outside of Singapore are exempt from taxation in Singapore. The higher rate, either 15% or the tax rate for residents is applied to income from employment for non-residents.
