How Singapore's Progressive Income Tax Works
Singapore uses a progressive income tax system for residents, with rates ranging from 0% on the first $20,000 up to 24% on income over $1,000,000. This makes Singapore one of the most tax-competitive developed nations in the world. The calculator applies resident tax brackets to estimate your PAYE tax liability accurately.
CPF Contribution Rates
The Central Provident Fund (CPF) is Singapore's compulsory social security savings scheme. For employees under 55, the contribution rate is 20% of wages (17% employer, 20% employee, totaling 37%). This calculator applies the employee CPF contribution to show its impact on your take-home pay, while employer contributions go directly to your CPF accounts.
Tax Reliefs and Rebates
Singapore offers various tax reliefs including earned income relief, CPF relief, course fees relief, and parent/handicapped sibling relief. These reduce your chargeable income and lower your tax bill. Understanding how these reliefs work alongside progressive tax rates helps you optimize your tax position and maximize net income.