A complete guide for Singapore taxpayers to understand the 60% personal income tax rebate for the Year of Assessment (YA) 2025, who qualifies, how it is calculated, and its impact on your final tax bill.
📌 What is the 60% Tax Rebate for YA 2025?
In the Singapore Budget 2025, the government announced a 60% tax rebate for all resident individual taxpayers for the Year of Assessment 2025. This rebate applies to the total tax payable after deducting all personal reliefs, but it is capped at SGD 200 per taxpayer.
The rebate is part of the government’s effort to provide cost-of-living support while maintaining a fair and sustainable tax system.
🛡️ Who is Eligible?
You qualify for the 60% tax rebate if:
- You are a tax resident in Singapore for YA 2025.
- You have chargeable income in YA 2025 after reliefs and deductions.
Non-residents do not qualify for this rebate, as it is specifically targeted at resident individuals.
📊 How the Rebate is Calculated
The rebate is 60% of the tax payable, capped at SGD 200. This means:
- If your tax payable is SGD 150 → rebate = 60% × 150 = SGD 90
- If your tax payable is SGD 1,000 → rebate = 60% × 1,000 = SGD 600, but capped at SGD 200
The rebate is automatically applied by IRAS — you do not need to make a separate claim.
🧮 Example Calculation
Here’s a worked example for a tax resident in YA 2025:
- Chargeable income: SGD 80,000
- Tax payable based on progressive rates: SGD 3,350
- 60% rebate = SGD 2,010, but capped at SGD 200
- Final tax payable = SGD 3,150
This shows how the cap ensures that higher-income earners receive the same maximum benefit as others.
💡 Impact on Different Taxpayers
- Low-income earners: Benefit proportionally, as their total tax payable is small, meaning the 60% applies fully without hitting the cap.
- Middle-income earners: Likely to hit the SGD 200 cap but still enjoy a modest reduction.
- High-income earners: Receive the same SGD 200 maximum rebate.
📅 When Will You See the Rebate?
The rebate will be reflected directly in your Notice of Assessment (NOA) for YA 2025, reducing your final tax payable before the payment due date.
💼 Tax Planning Tips Around the Rebate
- Remember that the rebate is capped — focus on other reliefs and deductions to further reduce tax.
- Plan CPF top-ups, SRS contributions, and donations before 31 December 2024 to lower chargeable income.
- Consider deferring certain income (if possible) to benefit from reliefs in future years.
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📢 Final Thoughts
The 60% tax rebate for YA 2025 offers a welcome, though modest, tax break for Singapore residents. While it is capped at SGD 200, it can still make a difference to your disposable income.
Use the rebate alongside strategic tax planning — such as maximising reliefs and deductions — to make the most of Singapore’s taxpayer-friendly system.
