How are income taxes calculated in Singapore?

In Singapore, income tax is progressively calculated on an individual's chargeable income, which is the total income after deductions and exemptions.
The tax rates increase with higher income brackets, ensuring a fair taxation system where those who earn more pay a higher rate of tax. The highest personal income tax rate is 22% for income exceeding SGD 320,000 annually. The lowest tax rate is 0% for individuals earning up to SGD 20,000.

A resident individual's taxable income (after setoff of personal reliefs and deductions) is subject to income tax at progressive rates. Current rates for the years of assessment 2023 and 2024 (income years 2022 and 2023) are shown below:

0%: 0 to 20,000 SGD
2%: 20,000-30,000 SGD
3.5%: 30,000-40,000 SGD
7%: 40,000-80,000 SGD
11.5%: 80,000-120,000 SGD
15%: 120,000-160,000 SGD
18%: 160,000-200,000 SGD
19%: 200,000-240,000 SGD
19.5%: 240,000-280,000 SGD
20%: 280,000-320,000 SGD
22%: above 320,000 SGD

Non-resident individuals are taxed at a flat rate of 22% (24% from the year of assessment 2024). Employment income is taxed at a flat rate of 15% or at resident rates with personal reliefs, whichever yields a higher tax.

Income taxes aren't withheld by the employer. However, companies are obliged to send out Income Tax Form IR8A to all their Employees on 1st March each year. This covers both foreign & local employees. The employee then files for his/her own income tax - along with his own other sources of income from external sources - by 15 April, or 18 April if done online using their SingPass. Normally these figures include CPF Contributions, donations, and annual bonus or commissions belonging to the whole year of 2023, even if you paid them later, e.g. Bonuses in Jan/Feb/Mar as some Companies do.

Tax deductions and rebates are available to reduce taxable income, promoting savings and investments. Common income tax deductions include contributions to the Central Provident Fund (CPF), donations to approved institutions, business expenses, rental expenses, and educational expenses.
Taxpayers can also claim deductions for life insurance premiums, Supplementary Retirement Scheme (SRS) contributions, and qualifying investments.
These deductions help reduce taxable income, potentially lowering the overall tax liability for individuals.

The Inland Revenue Authority of Singapore (IRAS) provides detailed guidelines and tax rate tables for accurate calculations.

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Singapore

How are income taxes calculated in Singapore?