How does Singapore income tax work — what are the progressive tax brackets for YA 2026?

Singapore Income Tax Brackets for YA 2026 (Based on Year of Assessment 2026)

Singapore employs a progressive income tax system for resident individuals, meaning the tax rate increases as your chargeable income rises. The rates provided below are based on the structure applicable for income earned in the preceding year (YA 2026 rates reflect income earned in 2025, using the latest known structure, as specific YA 2026 published tables are not explicitly detailed in the provided knowledge base, but the progressive structure remains consistent).

Chargeable Income Tax Rates (Resident Individuals):

• First $40,000: Taxed at 0% to 11.5% (Tiered rates apply).
• The first $20,000 of income is generally tax-free.
• Next $40,000 (i.e., $40,001 to $80,000): Taxed at 11.5% to 15%.
• Next $80,000 (i.e., $80,001 to $160,000): Taxed at 15% to 18%.
• Next $160,000 (i.e., $160,001 to $320,000): Taxed at 18% to 22%.
• Income above $320,000: Taxed at 22%.

Important Considerations:

• Total Tax Relief Cap: Singaporeans can claim various reliefs, but the total amount of reliefs and qualifying deductions is capped at $80,000 (as per provided data).
• SRS Tax Benefit Example: If you withdraw $40,000 from your Supplementary Retirement Scheme (SRS) after reaching the statutory retirement age, the first $20,000 is tax-free, and the remaining $20,000 is taxed at 50% of the amount (effectively making the withdrawal effectively zero-taxed if this is your only taxable income).
• CPF Contributions: Employee CPF contributions are mandatory but are not directly deducted from your income for income tax purposes; instead, they are factored into the calculation of your assessable income and reliefs.

This progressive structure ensures lower-income earners pay significantly less tax or none at all.