Find out how to calculate the income tax for tax residents and non-residents.
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Sample calculation for tax residents
Example 1: 35-year-old with employment income of $50,000 in 2024
Mr Heng is 35 years old and married. He earned $50,000 in 2024. He has a newborn child in 2024 and is eligible for Parenthood Tax Rebate of $5,000. His chargeable income for the Year of Assessment (YA) 2025 is computed as follows:
| Total Employment Income in 2024 | $50,000 |
|---|---|
Less: Donations | $250 |
Assessable Income | $49,750 |
Less: Personal Reliefs |
|
- Earned Income Relief | $1,000 |
- Qualifying Child Relief | $4,000 |
- Employee CPF Contribution Relief | $10,000 |
Chargeable Income | $34,750 |
Mr Heng's tax payable on his chargeable income of $34,750 is calculated as follows:
| Chargeable Income | Tax Payable |
|---|---|
Tax on first $30,000 | $200.00 |
Tax on next $4,750 @ 3.5% | $166.25 |
Tax Payable on Chargeable Income | $366.25 ($200 + $166.25) |
| Less: Personal Income Tax Rebate (60%), capped at $200 | $200 |
| Tax Payable after Personal Income Tax Rebate | $166.25 |
Less: Parenthood Tax Rebate | $166.25 |
Net Tax Payable for YA 2025 | $0 |
Mr Heng is entitled to Parenthood Tax Rebate of $5,000 in respect of his first child born in 2024 which is used to offset his income tax payable for YA 2025. The remaining amount ($5,000 - $166.25) will be used to offset his income tax payable in subsequent years until the rebate has been fully utilised.
Example 2: 64-year-old with employment income of $250,000 in 2024
Mr Fong was 64 years old in 2024 and had earned income of $250,000. His chargeable income for YA 2025 is computed as follows:
| Total Employment Income in 2024 | $250,000 |
|---|---|
Less: Donations | $250 |
Assessable Income | $249,750 |
Less: Personal Reliefs |
|
- Earned Income Relief | $8,000 |
- Employee CPF Contribution Relief | $7,650 |
Chargeable Income | $234,100 |
Mr Fong's tax payable on his chargeable income of $234,100 is calculated as follows:
| Chargeable Income | Tax Payable |
|---|---|
Tax on first $200,000 | $21,150 |
Tax on next $34,100 @ 19% | $6,479 |
Tax Payable on Chargeable Income | $27,629 ($21,150 + $6,479) |
| Less: Personal Income Tax Rebate (60%), capped at $200 | $200 |
| Net Tax Payable | $27,429 |
Sample calculation for non-tax residents
Example 3: 26-year-old foreigner who received a salary of $21,000
Mr Gabriel, a Chile national, stayed and worked in Singapore from 1 Aug 2024 to 31 Oct 2024. He received a total salary of $21,000. His chargeable income for YA 2025 is computed as follows:
| Total Employment Income in 2024 | $21,000 |
|---|---|
Less: Employment Expenses | $0 |
Assessable Income | $21,000 |
Less: Personal Reliefs | N.A. |
Chargeable Income | $21,000 |
Mr Gabriel's tax payable on his chargeable income of $21,000 is calculated as follows:
| Chargeable Income | $21,000 |
|---|---|
Tax Rate for Non-Residents | 15% |
Net Tax Payable for YA 2025 | $3,150 ($21,000 x 15%) |
Example 4: 39-year-old foreigner who received Director's Fees of $85,000
Ms Burch, an American, received Director's fees of $85,000 in 2024. Her chargeable income for YA 2025 is computed as follows:
| Director's Fees | $85,000 |
|---|---|
Less: Employment Expenses | $0 |
Assessable Income | $85,000 |
Less: Personal Reliefs | N.A. |
Chargeable Income | $85,000 |
Ms Burch's tax payable on her chargeable income of $85,000 is calculated as follows:
| Chargeable Income | $85,000 |
|---|---|
Tax Rate for Non-Residents (Director's Fees) | 24% |
Net Tax Payable for YA 2025 | $20,400 ($85,000 x 24%) |