A complete guide to Singapore’s progressive income tax rates from YA 2025 onwards, designed for taxpayers in Singapore to understand how rates apply, how to calculate tax, and how to reduce your bill legally.
📌 How Progressive Tax Works in Singapore
Singapore uses a progressive personal income tax system for tax residents, meaning the tax rate increases as your chargeable income increases. This system ensures that higher-income earners contribute a higher proportion of their income in taxes, while lower-income earners benefit from lower rates.
Non-residents are generally taxed at a flat 24%, with special provisions for employment income (15% flat or resident rates, whichever is higher).
📊 Progressive Tax Rate Table for YA 2025 Onwards
| Chargeable Income (SGD) | Tax on First (SGD) | Rate on Excess (%) |
|---|---|---|
| 0 – 20,000 | – | 0% |
| 20,001 – 30,000 | – | 2.00% |
| 30,001 – 40,000 | 200 | 3.50% |
| 40,001 – 80,000 | 550 | 7.00% |
| 80,001 – 120,000 | 3,350 | 11.50% |
| 120,001 – 160,000 | 7,950 | 15.00% |
| 160,001 – 200,000 | 13,950 | 18.00% |
| 200,001 – 240,000 | 21,150 | 19.00% |
| 240,001 – 280,000 | 28,750 | 19.50% |
| 280,001 – 320,000 | 36,550 | 20.00% |
| 320,001 – 500,000 | 44,550 | 22.00% |
| 500,001 – 1,000,000 | 84,150 | 23.00% |
| Above 1,000,000 | 199,150 | 24.00% |
Note: All resident individuals for YA 2025 will receive a 60% tax rebate capped at SGD 200.
🧮 Example of Progressive Tax Calculation
Let’s calculate tax for a Singapore tax resident with a chargeable income of SGD 95,000 in YA 2025:
- First 20,000 – No tax
- Next 10,000 @ 2% = 200
- Next 10,000 @ 3.5% = 350
- Next 40,000 @ 7% = 2,800
- Next 15,000 @ 11.5% = 1,725
Total Tax Payable: 200 + 350 + 2,800 + 1,725 = SGD 5,075
After 60% rebate (capped at SGD 200), final tax payable is SGD 4,875.
💼 Tax Rates for Non-Residents
- Employment income: 15% flat or resident rates, whichever is higher.
- Director’s fees and other income: Flat 24%.
- No personal reliefs for non-residents.
💡 How to Reduce Your Tax Bill
- Maximise personal reliefs (CPF contributions, SRS, parent relief, spouse relief).
- Make CPF top-ups and SRS contributions before 31 December.
- Donate to approved charities to get 250% deduction.
- Claim course fee relief for professional development (before YA 2026 lapse).
- For rental income, consider the 15% deemed expense deduction if higher than actual expenses.
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📢 Final Thoughts
Understanding progressive tax rates in Singapore is essential for accurate tax planning. By knowing how each income band is taxed and applying available reliefs, you can significantly reduce your effective tax rate.
For complex situations—such as dual income sources, self-employment, or overseas income linked to Singapore—consult a qualified tax advisor to optimise your tax position and ensure compliance.
