Tax season for Year of Assessment (YA) 2024 may not be until March, but it’s best to prepare for it sooner rather than later. The income you earned from 1 Jan to 31 Dec 2023 will be considered for YA 2024, where you’ll need to pay your taxes for it throughout 2024.
Here are the tax rates for Singapore residents in YA 2024 onwards.
Resident Income Tax Rates
| Chargeable Income | Income Tax Rate (%) | Gross Tax Payable ($) |
|---|---|---|
| First $20,000 Next $10,000 | 0 2 | 0 200 |
| First $30,000 Next $10,000 | – 3.50 | 200 350 |
| First $40,000 Next $40,000 | – 7 | 550 2,800 |
| First $80,000 Next $40,000 | – 11.5 | 3,350 4,600 |
| First $120,000 Next $40,000 | – 15 | 7,950 6,000 |
| First $160,000 Next $40,000 | – 18 | 13,950 7,200 |
| First $200,000 Next $40,000 | – 19 | 21,150 7,600 |
| First $240,000 Next $40,000 | – 19.5 | 28,750 7,800 |
| First $280,000 Next $40,000 | – 20 | 36,550 8,000 |
| First $320,000 Next $180,000 | – 22 | 44,550 39,600 |
| First $500,000 Next $500,000 | – 23 | 84,150 115,000 |
| First $1,000,000 In excess of $1,000,000 | – 24 |
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IRAS has adjusted the top marginal personal income tax rates in 2024. They introduced two new tiers. High income individuals will now find their annual income earned between S$500,000 and S$1 million taxed at 23% and any income earned in excess of S$1 million taxed at 24%. This is an increase from the previous personal income tax rates from YA 2017 to YA 2023 whereby all income earned in excess of S$320,000 was taxed at 22%.
Your salary will be taxed regardless of whether you are traditionally employed or working freelance. Your bonuses and — if you are a landlord — rental income are all subject to personal income tax. Compulsory CPF contributions, dividends from shares and capital gains, however, are exempt from taxation.
Here are a few ways to reduce your personal income tax.
1. Save Up For Retirement
The best way to reduce your taxes is to top up all you and your parents CPF accounts. You are able to get tax relief when you top up your Special Account and Medisave account, as well as your loved ones’ Special Account and Retirement Account. You can also put money in your Supplementary Retirement Scheme (SRS) account to reduce your taxable income.
| CPF Retirement Sum Topping-Up Scheme (RSTU) | Top up your Special Account and the amount will be deducted from your chargeable income, for up to S$8,000.
On top of that, top up your parents or grandparents’ CPF SA/RA for additional relief for up to S$8,000. This applies for up to the current Full Retirement Sum — you won’t get tax relief for anything beyond that. |
| Medisave | Top up your Medisave account up to the Basic Healthcare Sum of $71,500 (as of 2024).
As with the CPF SA, your funds will be locked up for a while, but you will be able to use it for medical expenses and health insurance premiums. |
| Supplementary Retirement Scheme (SRS) | Place some cash, up to $15,300 for Singaporeans and Singapore permanent residents, in an SRS account, where it can only be withdrawn after you retire.
Be sure to invest the money in that account, otherwise inflation will cause it to depreciate. |
Related: Everything You Need To Know About Supplementary Retirement Scheme (SRS)
In short, every S$1 that you put into your own or your loved ones’ accounts will mean S$1 deducted from your chargeable income. Unfortunately, this requires some prior planning. Any CPF or SRS top-ups had to be done by 31st of December 2023. Any voluntary contributions you make now to you or your parents CPF accounts as well as your SRS account will serve as income tax deductibles in 2025 not 2024.
Do note that in both instances, your funds will be locked up for a while. It is best to make sure that whatever money you contribute to both your CPF and SRS accounts is money you have earmarked for your retirement or medical expenses and not money you might need in the immediate future.
When filing your taxes, you don’t have to declare your voluntary retirement top-ups, as CPF and the local banks operating the SRS accounts will report your activities to IRAS. However, do check your tax documents to ensure that your contributions are reflected.
2. Move In With Your Parents
To solve the issue of an ageing population, the government has implemented Parent Relief to get the senior citizens’ own children to take care of them. So if you live with your parents, grandparents, in-laws or grandparents-in-law, you get to enjoy a tax break.
| Type of Parent Relief | Parent Relief | Handicapped Parent Relief |
|---|---|---|
| Taxpayer stays with dependant | S$9,000 per dependant | S$14,000 per dependant |
| Taxpayer does not stay with dependant | S$5,500 per dependant | S$10,000 per dependant |
Parent Relief applies if the senior citizens don’t earn over S$4,000 annually. You can only claim for two dependents, and you and your spouse’s claims cannot overlap on the same person, i.e. no double-claiming.
There are also tax reliefs — albeit more modest ones — for sheltering / caring for your handicapped sibling and your low-income spouse.
Related: How to Help Your Parents If They Don’t Have a Retirement Plan
3. Upgrade Your Skills
If you intend to upskill, not only will you gain more skills, you’ll also qualify for tax reliefs of up to S$5,500 thanks to the course fee relief.
The Course Fees Relief is for you if you took a course relevant to your current employment. You can claim the amount you spent on course and exam fees (up to $5,500) and have it deducted from your chargeable income.
Even if you choose a course that was totally different in order to make a mid-career switch? Don’t throw away those invoices just yet; you can still claim the tax relief in the future when you transition to your new job.
Related: Making a Career Switch? These Are the Most Lucrative Industries to Be In 2024 and Beyond
4. Make a Donation
While you probably already know that donating money to an IPC (Institution of a Public Character) can help to reduce your income tax, did you know that you can also donate shares, artworks and artefacts?
Donations to IPCs give you a 250% tax deduction, so if you donate S$1,000, you’ll have S$2,500 shaved off your chargeable income. Other tax deductible donations include SGX-listed shares, units in unit trusts, artefacts, sculptures or artworks to the National Heritage Board, buildings, as well as land.
You don’t have to declare your donations to the registered IPCs to claim the tax relief, as they will be automatically submitted to IRAS. If your donation is eligible for tax relief, the receipt from the IPC will say “Tax-Deductible”. Note that the IPCs will have to collect the details of all donors (NRIC, FIN or UEN) to facilitate the tax deduction.
Thanks to the government’s efforts to encourage more births in Singapore, not only will parents receive Baby Bonus, they can also enjoy a bunch of tax reliefs, including Working Mother’s Child Relief, Qualifying Child Relief + Parenthood Tax Rebate.
| Tax reliefs | For whom | Amount |
|---|---|---|
| Qualifying Child Relief | Both parents | S$4,000 per child ($7,500 if handicapped) |
| Working Mother’s Child Relief | Working mothers |
|
| Grandparent Caregiver Relief | Working mothers | S$3,000 |
| Foreign Maid Levy Relief | Mothers | 2x of maid levy paid (max. 1 maid only) |
And this is just the tip of the iceberg when it comes to tax relief schemes for parents, so visit the IRAS page for more details.
Most of these tax deductions are granted automatically, but just check your tax statement to be sure.
Now that you know the different types of income tax relief you can claim to reduce your taxable income, make sure you also find the best way to pay off your taxes. Check out our roundup of the best credit cards to pay off your income tax to get the most bang for your buck today!
Read More:
- 7 Ways to Pay Lesser Income Tax in Singapore Legally
- 4 Low-Risk Investment Alternatives to Fixed Deposits
- What Are Singapore Treasury Bills and Are They a Good Investment?
- Pros and Cons of Contributing to Your Supplementary Retirement Scheme (SRS)
- CPF Contributions in 2024 – Everything You Need to Know
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