Singapore Income Tax and CPF 2026: Your Take-Home Pay

Singapore works differently from most countries: your employer deducts CPF from every payslip, but income tax is not taken from your monthly pay. Instead, IRAS assesses it the following year. Income you earn in 2026 is taxed in Year of Assessment 2027. This guide explains Singapore income tax and CPF in 2026, the resident tax rates, the reliefs that lower your bill, and how much of your salary you actually keep, with worked examples.

CPF contributions in 2026

Citizens and permanent residents from their third year pay CPF on ordinary wages up to S$8,000 a month from 1 January 2026, up from S$7,400. The employee contribution rate depends on age: 20% for those aged 55 and below, with the employer adding 17%; 18% for those above 55 to 60; 12.5% above 60 to 65; 7.5% above 65 to 70; and 5% above 70. Employer rates also fall with age.

Your CPF contributions are split between your Ordinary, Special or Retirement, and MediSave accounts, and they earn interest set by the government. Read our guide to CPF accounts explained for how each one is used.

CPF relief lowers your income tax

Your compulsory CPF contributions are deducted from your income before tax, a relief known as CPF relief. That means the 20% you contribute is not taxed, which is a significant saving for higher earners.

Singapore resident income tax rates

The first S$20,000 of chargeable income is tax-free. Rates then rise gradually from 2% to 24%: 2% up to S$30,000, 3.5% up to S$40,000, 7% up to S$80,000, 11.5% up to S$120,000, 15% up to S$160,000, 18% up to S$200,000, 19% up to S$240,000, 19.5% up to S$280,000, 20% up to S$320,000, 22% up to S$500,000, 23% up to S$1 million, and 24% above that. Earned income relief of S$1,000, and more from age 55, also comes off your income.

Non-residents are taxed differently, usually at a flat 15% on employment income or the resident rates, whichever gives more tax, so these figures apply to tax residents.

Worked examples (citizen, 55 or younger)

Salary of S$48,000 a year. CPF is S$9,600. After CPF relief and earned income relief, chargeable income is S$37,400, and tax is S$459. You keep S$37,941 in cash, plus S$9,600 in your CPF accounts.

Salary of S$72,000 a year. CPF is S$14,400, chargeable income S$56,600 and tax S$1,712. You keep S$55,888.

Salary of S$120,000 a year. CPF is capped at S$19,200 because of the S$8,000 monthly ceiling. Chargeable income is S$99,800 and tax is S$5,627. You keep S$95,173.

Try your own salary in our Singapore income tax and CPF calculator.

Bonuses and the additional wage ceiling

Bonuses and other additional wages also attract CPF, but only up to an annual additional wage ceiling that depends on your ordinary wages for the year. Bonuses are fully taxable as income, so a large year-end bonus can push part of your income into a higher tax band in the following assessment.

Plan for the tax bill

Because the tax bill arrives the following year, it is easy to spend money that will be needed later. Set some money aside each month, or pay your tax by GIRO in up to 12 interest-free monthly instalments. IRAS usually issues notices of assessment from around April, after the filing season closes.

Reliefs that lower your tax further

Singapore offers a range of personal reliefs. These include reliefs for a dependent spouse, children, working mothers and parents you support, as well as course fees relief. Cash top-ups to your own or family members' CPF retirement accounts earn relief, and contributions to the Supplementary Retirement Scheme are deductible too; see our guide to the SRS. Total personal reliefs are capped at S$80,000 a year.

Frequently asked questions

Is income tax deducted from my salary in Singapore?

Usually not. CPF is deducted monthly, but income tax is assessed the following year and paid separately.

What is the CPF wage ceiling in 2026?

S$8,000 a month for ordinary wages, from 1 January 2026.

How much income is tax-free in Singapore?

The first S$20,000 of chargeable income for tax residents.

Singapore income tax and CPF in 2026: how much you take home