IRAS Progressive Tax Brackets: A Complete Guide for YA 2026
Singapore is renowned for its competitive and stable tax regime. The Inland Revenue Authority of Singapore (IRAS) administers personal income tax on a progressive scale for tax residents, meaning that higher levels of income are taxed at higher marginal rates. This ensures that the tax system remains fair and redistributive while remaining highly competitive on the global stage.
This guide provides a comprehensive breakdown of the IRAS progressive tax brackets for the Year of Assessment (YA) 2026, which covers income earned during the calendar year 2025.
1. Resident Tax Rates for YA 2026
If you are a Singapore tax resident, your chargeable income (gross income minus deductible expenses and personal tax reliefs) is subject to the following progressive rates. The tax brackets have been adjusted in recent years, with a top marginal rate of 24% for chargeable income exceeding SGD 1,000,000.
Here is the official IRAS resident tax rate structure for YA 2026:
| Chargeable Income Range (SGD) | Marginal Tax Rate (%) | Tax Payable (SGD) | Cumulative Tax Payable (SGD) |
|---|---|---|---|
| First 20,000 | 0 | 0 | 0 |
| Next 10,000 (20,001 to 30,000) | 2.0 | 200 | 200 |
| Next 10,000 (30,001 to 40,000) | 3.5 | 350 | 550 |
| Next 40,000 (40,001 to 80,000) | 7.0 | 2,800 | 3,350 |
| Next 40,000 (80,001 to 120,000) | 11.5 | 4,600 | 7,950 |
| Next 40,000 (120,001 to 160,000) | 15.0 | 6,000 | 13,950 |
| Next 40,000 (160,001 to 200,000) | 18.0 | 7,200 | 21,150 |
| Next 40,000 (200,001 to 240,000) | 19.0 | 7,600 | 28,750 |
| Next 40,000 (240,001 to 280,000) | 19.5 | 7,800 | 36,550 |
| Next 40,000 (280,001 to 320,000) | 20.0 | 8,000 | 44,550 |
| Next 180,000 (320,001 to 500,000) | 22.0 | 39,600 | 84,150 |
| Next 500,000 (500,001 to 1,000,000) | 23.0 | 115,000 | 199,150 |
| Above 1,000,000 | 24.0 | - | - |
Understanding "Marginal" Tax Rates
In Singapore, tax is calculated using a slab system. Having your income enter a higher tax bracket does not mean your entire income is taxed at that higher rate. Only the portion of your income that falls within that specific bracket is taxed at the corresponding marginal rate.
For example, if your chargeable income is SGD 100,000:
- The first SGD 80,000 is taxed at a cumulative flat fee of SGD 3,350.
- The remaining SGD 20,000 (SGD 100,000 - SGD 80,000) falls into the next bracket and is taxed at 11.5%, which equals SGD 2,300.
- Your total income tax payable would be SGD 3,350 + SGD 2,300 = SGD 5,650.
2. Non-Resident Tax Rates
You are considered a non-resident for tax purposes if you are a foreigner who stayed or worked in Singapore for less than 183 days in a calendar year.
The tax rules for non-residents differ significantly from residents:
- Employment Income: Taxed at a flat rate of 24% (up from 22% in previous years to align with the top marginal rate adjustments) or the progressive resident tax rates, whichever yields a higher tax amount.
- Director's Fees, Consultation Fees, and Other Income: Taxed at a flat rate of 24%. This is typically withheld at source.
- Tax Reliefs: Non-residents are generally not eligible to claim personal tax reliefs.
3. Key Concepts: Chargeable Income vs. Gross Income
To plan your taxes effectively, you must distinguish between Gross Income and Chargeable Income.
- Gross Income: This includes your salary, bonuses, allowances, director's fees, rental income, and any other taxable gains. (Note: Capital gains and dividends are generally tax-exempt in Singapore).
2. Deductions: You can subtract business expenses incurred solely in the production of your income, as well as allowable rental expenses.
3. Personal Tax Reliefs: These are statutory deductions allowed by IRAS to encourage social and economic goals. They include CPF contributions, SRS contributions, spouse relief, parent relief, child relief, and course fee relief.
4. Chargeable Income: The remaining figure after subtracting deductions and reliefs. This is the figure applied directly to the progressive tax brackets table above.
By utilizing tax reliefs such as CPF top-ups or SRS contributions, you can bring your chargeable income down into a lower bracket, significantly lowering your tax bill. Always remember that total personal reliefs are capped at SGD 80,000 per Year of Assessment.