As Benjamin Franklin famously once said, “There are only two things certain in life: Death and Taxes”.
Everyone who earns an income (more than 20k annually) in Singapore, whether employed or self-employed, must pay taxes every year, in the form of cold hard cash. Therefore, the more taxes you avoid (legally) paying, the more money you will have for your savings, investments or retirement funds.
Before I share more about the methods to reduce your total taxable income, let’s looking at how the different income earners are being taxed in Singapore.
Singapore’s personal income tax is progressive, scaling from 0% up to 24%. While base rates are relatively low, full utilization of the statutory tax reliefs allowed by the Inland Revenue Authority of Singapore (IRAS) can noticeably reduce your final bill.
Keep one strict constraint in mind: IRAS caps total personal tax relief at S$80,000 per Year of Assessment (YA).
Here are some possible tax relief options to help reduce your income tax and get more savings for your income.
1. Top Up Retirement Accounts
Cash contributions to retirement accounts offer immediate, dollar-for-dollar reductions in taxable income.
CPF Cash Top-Ups (RSTU)
- Self: Up to S$8,000 tax relief per year for cash top-ups to your own Special Account (SA) or Retirement Account (RA).
- Family Members: Up to S$8,000 additional tax relief per year for cash top-ups to parents, parents-in-law, grandparents, spouse, or siblings.
Do note that you can only top up your SA until the Full Retirement Sum (FRS), in which the FRS for members turning age 55 in 2026 is S$220,400. If you or your loved ones has already reached FRS in their SA, you are unable to top up and thus, unable to claim any tax relief.
Supplementary Retirement Scheme (SRS)
- Limits: You can contribute up to S$15,300 annually (Singaporeans/PRs) or S$35,700 (foreigners).
- Tax Treatment: SRS contributions directly lower your chargeable income for the year. Funds inside SRS can be invested in approved instruments (ETFs, unit trusts, single stocks). Only 50% of the funds withdrawn after statutory retirement age are subject to tax.
Read more about SRS here, including when you can withdraw, the tax you need to pay when you withdraw and how to make the best out of your SRS:
Everything You Need To Know About Supplementary Retirement Account (SRS); How It Works, Tax Relief And Withdrawal Strategies
2. Donate to Approved Charities
Donations made to approved Institutions of a Public Character (IPCs) or the Government grant a 250% tax deduction.
For example:
If you donate $100 to Children Cancer Foundation (CCF), you will get a tax relief of $250.
Do ensure you provide your NRIC/FIN to the receiving organization so the claim automatically registers on your tax portal.
3. Claim Family and Dependant Reliefs
Tax reliefs for family support are automatically applied or easy to claim during annual filing:
- Parent Relief: Up to S$9,000 per dependant parent residing with you, or S$5,500 if non-residing (S$14,000 / S$10,000 if the parent is handicapped).
- Qualifying Child Relief (QCR): S$4,000 per child (or S$7,500 for a handicapped child).
- Parenthood Tax Rebate (PTR): A direct tax credit (not just a relief on income) of S$5,000 for the 1st child, S$10,000 for the 2nd, and S$20,000 for each subsequent child.
Do note that to qualify for parent relief, your parent must earn $8,000 or less for the entire year. This includes all sources of income such as employment, rental income, dividends, pension, and foreign-sourced income.
Working Mother’s Child Relief (WMCR) Detailed Rules
WMCR is one of Singapore’s most substantial personal tax reliefs, reserved strictly for working mothers (married, divorced, or widowed) who earn income and have Singapore Citizen children (under 16, or studying full-time with an annual income not exceeding S$8,000).
Claims depend on when your child was born or adopted:
| Child Order | Children Born / Adopted Before 1 Jan 2024 | Children Born / Adopted On or After 1 Jan 2024 |
| 1st Child | 15% of mother’s earned income | S$8,000 flat relief |
| 2nd Child | 20% of mother’s earned income | S$10,000 flat relief |
| 3rd Child & Subsequent | 25% of mother’s earned income (each) | S$12,000 flat relief (each) |
- Older Children (Pre-2024): Higher earners benefit more because relief scales as a percentage of salary (up to 100% of earned income combined across children).
- Newer Children (2024 onwards): Provides a fixed dollar reduction regardless of income level.
- Child-Specific Cap: The combined total of QCR/HCR plus WMCR for the same child cannot exceed S$50,000.
- Tax Strategy: Since WMCR cannot be transferred to the father, allocate 100% of the S$4,000 QCR to the father if the mother’s WMCR already consumes her tax bracket or nears the child ceiling.
4. Claim Professional Course Fees
If you pay for courses, seminars, or formal qualifications to stay relevant in your current field, you can claim up to S$5,500 per year under Course Fees Relief.
- Qualifies: Continuing education or academic programs leading to recognized qualifications relevant to your current job or business.
- Excludes: Casual workshops or hobby classes (e.g., recreational cooking or fitness certifications unrelated to your job).
5. Deduct Work-Related and Rental Expenses
- Unreimbursed Employment Expenses: Out-of-pocket expenses directly required to perform your job duties (e.g., client entertainment or professional membership fees) that your employer does not reimburse can be claimed as a deduction.
- Rental Property Expenses: Property owners earning rental income can claim a flat 15% Deemed Rental Expense on gross rent, plus any mortgage interest incurred on the property loan. Alternatively, you can claim actual allowable expenses if you retain all receipts and invoices.
6. NSman Reliefs
Male Singapore Citizens who have completed National Service automatically qualify for NSman Relief:
- Self: S$1,500 to S$5,000 depending on active deployment status and leadership positions during the preceding work year.
- Spouse and Parents: Flat S$750 relief per year.
Key Deadlines and Limits
| Strategy | Maximum Relief Limit | Cut-Off Date |
| CPF Cash Top-Up (Self + Dependant) | S$16,000 / year total | Dec 31 of current calendar year |
| SRS Contribution | S$15,300 (Citizen/PR) / S$35,700 (Foreigner) | Dec 31 of current calendar year |
| Course Fees Relief | S$5,500 / year | Dec 31 of current calendar year |
| IPC Charitable Donations | 250% of cash donated | Dec 31 of current calendar year |
| WMCR + QCR Combined (Per Child) | S$50,000 per child | Applied automatically by IRAS |
| Total Personal Relief Cap | S$80,000 total across all reliefs | Applied automatically by IRAS |
To affect your tax bill for any given Year of Assessment, all cash transfers, SRS deposits, and IPC donations must clear by December 31 of the preceding calendar year.
Concluding Thoughts
The amount of tax relief can add to a substantial amount if we apply the tax relief options to our advantage and that translate to using less of our income/ savings to pay taxes. The tax relief are automatically applied once you have completed the options so do remember to complete the top-ups, donations before the last day (31 Dec) of the year. Hope you find this piece of information useful.
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