Income tax (rates / brackets)

Singapore's income tax system applies progressive tax rates to resident individuals and foreign-sourced income earned by non-residents. For the 2024 tax year, resident individuals are taxed on worldwide income at rates ranging from 0% on the first SGD 20,000 of chargeable income to 22% on income exceeding SGD 320,000. The tax brackets increase incrementally between these thresholds, with rates of 3.5%, 7%, 11.5%, 15%, 18%, and 20% applied to successive income bands. Non-residents pay a flat rate of 15% on Singapore-sourced income, with certain exceptions for investment income and specific categories.

The Income Tax Act, administered by the Inland Revenue Authority of Singapore (IRAS), governs all personal income taxation. Singapore maintains one of the lowest personal income tax rates globally, with no tax levied on the first SGD 20,000 of annual income for residents, effectively providing a tax-free threshold.

Employers and payroll teams must withhold income tax from employee salaries according to IRAS-prescribed rates and remit these amounts monthly. Employees must file annual tax returns if their income exceeds the filing threshold, typically by 18 April each year. Self-employed individuals and business owners must maintain detailed records and file returns separately. Tax relief provisions exist for various categories including earned income relief, spouse relief, and dependent relief, which reduce taxable income. Payroll administrators should maintain current IRAS tax tables and ensure accurate withholding calculations, as non-compliance attracts penalties and interest charges.