Wei Ling, 34, is a product manager at a bank. Her Notice of Assessment for Year of Assessment (YA) 2026 shows chargeable income of $125,000, including $10,000 from a year-end bonus, and tax of $8,700. She wanted to know how much of that bill the bonus added, and whether it moved all of her income into a higher bracket.
Singapore taxes its residents on a progressive scale. The first $20,000 of chargeable income is taxed at 0%, and the rate rises in steps to 24% on income above $1,000,000. Each rate applies only to the income inside its band, so a taxpayer's average rate is always lower than the top rate they reach.
A resident with $100,000 of chargeable income pays $5,650 for YA 2026, an average rate of 5.65%. At $125,000, Wei Ling pays $8,700, an average of 6.96%, while the rate on her last dollar is 15%. This article follows her bill through the scale, the tax at twelve income levels, and the rules for non-residents.
What Are The Resident Income Tax Rates For YA 2026?
The YA is the year in which income is assessed, and it covers the income of the calendar year before. YA 2026 covers income earned from 1 January to 31 December 2025, and returns for it were due by 18 April 2026.
According to the Inland Revenue Authority of Singapore (IRAS) income tax rates page (checked 27 September 2026), these rates apply from YA 2024 onwards. The right-hand column is the running total that IRAS calls gross tax payable.
| Chargeable Income | Rate On This Band | Tax At The Top Of The Band |
|---|---|---|
| First $20,000 | 0% | $0 |
| Next $10,000 | 2% | $200 |
| Next $10,000 | 3.5% | $550 |
| Next $40,000 | 7% | $3,350 |
| Next $40,000 | 11.5% | $7,950 |
| Next $40,000 (Wei Ling) | 15% | $13,950 |
| Next $40,000 | 18% | $21,150 |
| Next $40,000 | 19% | $28,750 |
| Next $40,000 | 19.5% | $36,550 |
| Next $40,000 | 20% | $44,550 |
| Next $180,000 | 22% | $84,150 |
| Next $500,000 | 23% | $199,150 |
| Above $1,000,000 | 24% |
Source: IRAS
The two top bands (23% and 24%) were added from YA 2024. For YA 2017 to YA 2023, the scale stopped at 22% on income above $320,000. Wei Ling's income ends in the 15% band, which runs from $120,000 to $160,000.
How Is Her Chargeable Income Worked Out?
The scale applies to chargeable income. IRAS starts from assessable income (employment income, rent, trade income and other taxable income, less allowable expenses and donations) and then subtracts personal reliefs. The main deductions are listed below.
- CPF relief for the employee's own compulsory CPF contribution. The employer's contribution is not income to the employee.
- Earned income relief of $1,000 for taxpayers below 55, granted automatically.
- Every other relief the taxpayer claims, such as qualifying child relief, SRS relief or CPF cash top-up relief.
All personal reliefs together are capped at $80,000 a year. In an IRAS worked example (checked 27 September 2026), a taxpayer with employment income of $150,000 received CPF relief of $20,400. Wei Ling claimed CPF relief and earned income relief only, and her $125,000 is what remained after both.
Capital gains and dividends from Singapore-resident companies are not taxable for individuals, so the dividends on her bank shares never enter the sum. Her chargeable income comes from her salary and bonus alone.
Read Also: Singapore Personal Tax Reliefs For YA 2026 And The $80,000 Cap
How Much Tax Do Residents Pay At Each Income Level?
The table applies the resident scale to twelve chargeable incomes. The marginal rate is the rate on the next dollar of income, and it is also the rate at which a relief saves tax.
| Chargeable Income | Tax Payable | Average Rate | Marginal Rate |
|---|---|---|---|
| $30,000 | $200 | 0.67% | 2% |
| $40,000 | $550 | 1.38% | 3.5% |
| $50,000 | $1,250 | 2.50% | 7% |
| $60,000 | $1,950 | 3.25% | 7% |
| $80,000 | $3,350 | 4.19% | 7% |
| $100,000 | $5,650 | 5.65% | 11.5% |
| $120,000 | $7,950 | 6.63% | 11.5% |
| $150,000 | $12,450 | 8.30% | 15% |
| $200,000 | $21,150 | 10.58% | 18% |
| $250,000 | $30,700 | 12.28% | 19.5% |
| $300,000 | $40,550 | 13.52% | 20% |
| $500,000 | $84,150 | 16.83% | 22% |
Source: IRAS resident tax rates from YA 2024
Each figure is the gross tax payable at the top of the band below it, plus the income above that band at the next rate. At $150,000, the first $120,000 is taxed $7,950 and the next $30,000 is taxed at 15%, so the total is $7,950 + $4,500 = $12,450. Wei Ling's $125,000 falls between the $120,000 and $150,000 rows, and her tax is $7,950 + (15% × $5,000) = $7,950 + $750 = $8,700.
Did The Bonus Push Her Into A Higher Bracket?
When a bonus takes income across a threshold, only the part above that threshold is taxed at the higher rate. Before the bonus, Wei Ling's chargeable income was $115,000. The first $5,000 of the bonus was taxed at 11.5% and the other $5,000 at 15%.
The bonus added $575 + $750 = $1,325 to her tax, and her income below $120,000 kept its lower rates. Her tax without the bonus would have been $7,375, so the $10,000 cost her an average of 13.25% against 6.96% on her whole income.
The same arithmetic runs in reverse for a relief. A relief comes off the top of chargeable income, so it saves tax at the marginal rate first, and at the lower rate once it crosses a band boundary.
Read Also: SRS Or CPF Cash Top-Up: Which Cuts More Tax In 2026?
Who Counts As A Tax Resident?
Wei Ling is a Singapore Citizen living in Singapore, so she is taxed on the resident scale. IRAS treats an individual as a tax resident for a YA if any one of these applies:
- A Singapore Citizen or Permanent Resident who resides in Singapore, except for temporary absences.
- A foreigner who stayed or worked in Singapore for at least 183 days in the previous calendar year.
- A foreigner who stayed or worked in Singapore continuously for three consecutive years, even if the stay was under 183 days in the first or third year.
- A foreign employee whose employment straddles two calendar years with a total stay of at least 183 days. This excludes company directors, public entertainers and professionals.
Only a tax resident can claim personal reliefs. Residency depends on presence and the nature of the stay in Singapore, and citizenship alone does not decide it.
How Are Non-Residents Taxed?
According to the same IRAS rates page (checked 27 September 2026), non-residents are taxed as shown below.
| Type Of Income | Non-Resident Tax Rate |
|---|---|
| Employment income | Flat 15% or the resident rates, whichever gives the higher tax |
| Director's fees, rent, pensions and most other income | 24% (22% before YA 2024) |
| Income of non-resident professionals | 15% of gross income or 24% of net income |
Source: IRAS
A colleague seconded to Wei Ling's team for five months of 2025 stayed under 183 days, so he is a non-resident. On $125,000 of employment income, 15% is $18,750, against $8,700 on the resident scale, so he pays $18,750 and cannot reduce it with reliefs. The resident scale gives more tax than a flat 15% only once income passes about $369,000, and at $370,000 it gives $55,550 against $55,500 at 15%.
Is There A Rebate For YA 2026, And When Is Tax Due?
A personal income tax rebate is a one-off amount announced at a Budget. The IRAS rebate page (checked 27 September 2026) lists two recent rebates, and none for YA 2026.
| Year Of Assessment | Personal Income Tax Rebate |
|---|---|
| YA 2024 | 50% of tax payable, up to $200 |
| YA 2025 | 60% of tax payable, up to $200 |
Source: IRAS
A YA 2025 rebate would have taken $200 off a bill the size of Wei Ling's, and for YA 2026 she pays the full $8,700. According to IRAS (checked 27 September 2026), a resident generally has to file when any of these applies:
- Total income in the previous year was more than $22,000.
- Net self-employment profit was more than $6,000.
- IRAS sent a notice to file, whatever the income.
Filing opens on 1 March and closes on 18 April, and the tax bill is due one month from the date of the Notice of Assessment. Wei Ling filed in March 2026 and paid within a month of her notice.
Read Also: SRS And CPF Top-Ups: Why 31 December Is The Deadline
Read Also: Work Out Your Household's Income Tax And Reliefs In Cashmere Pocket
What Did Wei Ling Decide?
The bonus cost Wei Ling $1,325 in tax and left her lower bands unchanged, so she paid the $8,700 as assessed. For YA 2027 she plans an SRS contribution before 31 December 2026, which IRAS allows as relief up to $15,300 for citizens and permanent residents (checked 27 September 2026). On the same income, the full $15,300 would save 15% × $5,000 + 11.5% × $10,300 = $750 + $1,184.50 = $1,934.50.
Most middle-income residents pay a small share of their income in tax. A resident at $80,000 of chargeable income pays 4.19% on average and a resident at $150,000 pays 8.30%, and the marginal rate sets both the saving from each relief and the cost of each extra dollar. These figures are the published scale on 27 September 2026, rates and rebates can change at each Budget, and each household's tax depends on its reliefs, its residency and the type of income it earns.