Resident income tax on chargeable income, YA 2026.
Income tax payable
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After-tax income
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Effective rate
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Your breakdown
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Income slice
Rate
Tax
Worked example
Take a resident with chargeable income of S$80,000 (that is income after all reliefs such as earned income relief, CPF and SRS). Singapore taxes this in slices, not all at one rate. The first S$20,000 is free. The next S$10,000, from S$20,000 to S$30,000, is taxed at 2 percent, which is S$200. The slice from S$30,000 to S$40,000 is taxed at 3.5 percent, adding S$350. The remaining S$40,000, the part from S$40,000 to S$80,000, sits in the 7 percent band and adds S$2,800. Summed, the tax payable is S$3,350.
That leaves S$76,650 after tax. The effective rate is only 4.19 percent, far below the 7 percent marginal rate, because the lower bands and the tax-free first S$20,000 drag the average down. This gap between marginal and effective rate is why a pay rise is never taxed at your headline band on every dollar.
How it is calculated
Singapore uses a progressive resident schedule for Year of Assessment 2026. Your chargeable income, meaning assessable income minus all reliefs, is split across bands and each band is taxed at its own rate. The first S$20,000 is taxed at 0 percent, then rates climb step by step through 2, 3.5, 7, 11.5 and 15 percent, reaching a top rate of 24 percent on income above S$1,000,000. Because each rate applies only to the income inside that band, your effective rate is always lower than your marginal rate. Reliefs matter because they cut chargeable income before any of these bands apply, and there is no separate tax on capital gains in Singapore.
Frequently asked questions
How much income is tax-free in Singapore?
The first S$20,000 of chargeable income is taxed at 0%. Rates then rise progressively from 2% to a top rate of 24% above S$1,000,000. Reliefs (earned income, CPF, SRS, parent, etc.) reduce chargeable income before these rates apply.
What is chargeable income in Singapore?
Chargeable income is your assessable income minus all tax reliefs you qualify for. Common reliefs include earned income relief (up to S$1,000 for under 55s), CPF relief on mandatory contributions, SRS contributions, parent relief, and course fees relief. You enter the after-relief figure into this calculator.
What is the difference between marginal rate and effective rate?
The marginal rate is the rate that applies to the last dollar of your income, for example 7% if your chargeable income is S$80,000. The effective rate is the total tax divided by total income, so S$3,350 divided by S$80,000 equals 4.19%. Because the lower bands and the tax-free first S$20,000 are applied first, your effective rate is always lower than your marginal rate.
Does Singapore tax capital gains?
No. Singapore does not impose any tax on capital gains. Profits from selling shares, property (excluding traders treated as income), and other investments are not taxable. This is one reason Singapore income tax rates can appear lower than in countries that tax investment income separately.