[Update: the 2009 version of this post is here: Income Tax Calculator 2009.]
[Update: the 2008 version of this post is here: Income Tax Calculator 2008.]
We have all filed our tax returns. But we’re not sure how much tax we’ll be paying.
Here’s an income tax calculator for this year (YA2007). Just enter your chargeable income (assessable income minus all applicable reliefs):
The above calculator is based on information from Inland Revenue Authority of Singapore (IRAS).
Even though the maximum individual tax rate is 20%, most of us will be charged at a (much) lower rate due to the progressive tax structure. For example, if your chargeable income is $100k, your tax rate is only 7.1%. The graph below shows effective tax rate against chargeable income:
Wow, the steepest raise if from $20,000 to 85,000. i.e. majority of the workforce.
From $350,000 to $500,000, only addition of 2% for a $150,000 increment.
This is truely taxing the poor to feed the rich.
What is chargeable income?
Take into example someone earning 2.5k per mth (before CPF). Which of these are chargeable?
a. 2,500 x 12?
b. [(2,500 + employer CPF contributions) x 12] + bonus
c. [(80% of 2,500 + employer CPF contribtution) x 12] + bonus
d. other combinations
IRAS provides an Excel template to calculate the tax
Note: Chargable income is net income after employee CPF contribution
To Kelvin, trying to understand your logic: just because the rate of increase diminishes as you move up the scale, it means that the poor are being taxed to feed the rich?
One of them earning $500K contributes more tax then 10 of us earning $100k.
Based on the chart, the former pays about $80k (@16%), while each of the “poorer ones” only pays $7k (@7%). Yet, the salary of the former is even near 10x that of the “poorer ones”.
How’s my maths?
Correction: I meant “not even 10x that of the ….”.
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I think the point Kevin is trying to make is that the middle class gets squeezed a lot more for trying to climb the ladder but those closer to the top get taxed a lot less trying to move up. So unless you start off nearer to the top, you’ll feel the squeeze quite a bit.
n00b, it should be 2,500 x 12 + bonus, then minus whatever reliefs you’re entitled to (e.g. earned income, wife, children, provident fund). Generally, your CPF contributions can be deducted (as a “provident fund” relief). See http://www.iras.gov.sg/ESVPortal/iit/iit-se-a18.104.22.168+provident+fund+life+insurance+relief.asp
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I need to check my tax applicable after an income of $250k a year after bonus.
Hi Sam, based on my calculator,
Your gross tax payable is $30,800.00
(effective tax rate is 12.32%)
I am earning $8000 (singapore dollar)per month, i.e. $96000 per annum, please what would be tax applicable on the same, also if i wish to stay in singapore for 5 years then is there any benefit in taxation.
Also i have heard if i leave after 5 years then what were tax was been collected is refunded, is that true?
Sanjay, my comments provided “as is” (you must check with other sources on the info provided here):
Since you are physically in Singapore, you will be taxed as a “tax resident”. And based on YA2007 rates, your gross tax payable is S$6,540.
For definition of “tax resident”, see:
Comparison of tax resident and non-resident:
My salary is SGD 5000/month and I am travelling to Singapore next month. Whats is the tax liability by me considering that I will be shelled out 5000 as my basic.What is the logic of change in tax for 6 month and more than 6 month calculation?
karthik, assuming your chargeable income is $60k and tax rates stay the same, your gross tax payable is $2,600.
As for the “logic of change” for a tax resident vis-a-vis a non-resident (physically in Singapore for less than 183 days), I’m really not sure. It’s best if you check with IRAS.
I am being offered S$45260 Gross, which includes (all numbers are per annum) :
Basic : S$43800
Bonus : S$1200
Family Insurance : S$200.
Two Questions :
What will be my net take home salary per month. Would appriciate if can reply with each deduction item as well.
Is this a practically enough salary to live and save some money for a new commer like me with 2.5 Years experience in IT. ( I know its a wauge question – but…)
Satish, I think it’s best for you to check with your employer regarding pay matters (deductions, CPF, tax, insurance, net pay, other benefits, etc). As for living comfortably, it depends on your lifestyle. If you just rent a room, you can be quite comfortable with that kind of pay.
I’m from India and have been here in Singapore from 25 th July 2005 continuously(first year
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I have a job offer from a singaporean company. they are offering a gross salary of S$3000/- PM.
I have reffered the below link provided by u against a query. but being a foreigner working in singapore will i have to pay tax according to the below mentioned tax calculator or @ 15%? even if i stay there for more than a year. and if i join that company in october’2007 wht will be the tax rate in the year 2007?
KK, you’ll be taxed as a resident since you’ll be physically in Singapore. Assuming you make $3k x 12 = $36k for the year, you’ll need to pay $680.
Disclaimer: I’m not a tax expert. Please check with your employer or IRAS to confirm my calculations.
Very interesting information! Thanks!
Thank you very much for your kind reply.
guys, got a quesion i got job offer of 90000 per year . But I saw all the exap sites accomodaiton is very expensive. is tht sufficeint salary as i am looking to save heaps as well.
sam, if you rent a room (as opposed to an apartment), I’m pretty sure you can save heaps.
But if you insist on having a whole apartment to yourself, you have to consider areas further from the city area. $2-3k in rental shouldn’t be hard to come by.
what is the rental for a normal one bed room aspartment . If i had to work in the city , how difficult it is to commuyte to city from outskirts and how much tranporation charges wud come to ?
avrage cost of one room ( 2 ppl can stay) S$400 to 500
cost to commute about s$ 50 to S$ 70
commutation is too good in singapore you can travel whole country in about 1.5 hrs during any time of day.. buses are trains are best and have good freqency, wait time not excess of 7 min anywhere any location.. only problem with outskirts- you will endup travelling Half an hour extra each trip – every day..
Im being offered by a Singaporean company of S$ 1800/mos (gross) as a management trainee.I’m not originally from Singapore, however according to my contract, I’ll be staying with the company for 2 years..hence I’ll be tax as a resident individual.
My questions are:
1. Is my salary competetive given my position?? 2. (Pls) Help me compute my net montly income given my monthly salary?
3. Is the deduction of tax on income per month or per annum basis?
Thank you very much.. I badly need your help regarding this “tax” matter!
Kooki, I can’t comment on whether your salary is competitive, but your tax payable – which is $56 payable per year assuming no reliefs and no rebates – is very low.
Your employer do not deduct tax from your monthly income, unlike in some parts of the world. Instead, you pay tax directly to Iras, either in one lump sum once a year, or by GIRO on a monthly basis.
Disclaimer: my comments provided “as is”. It’s always best to confirm with Iras or a professional tax consultant.
I still have trouble understanding, what exactly makes up the taxable income. I am offered the following:
basic: 10500pm x 13
car allowance: 1800 pm
housing allowance: 5500 pm
Does that mean that my taxable income 10500×13 + 1800×12 + 5500×12 = 158100 is?
Also, I think the company would rent the place for me. How would that influence the taxable income?
Rainer, I believe certain benefits given by employers are taxable.
From what I know, both allowances you mentioned are taxable (for housing, there’s a formula, so it’s not the full value that’s subject to tax). See:
As always, you must check with your employer or the HR department to be absolutely sure.
I am a foreign consultant who is incorporated in Singapore. I will be here more than 183 days in 2007, but I heard as a director and sole employee of my company I have to pay more taxes. Can someone please advise on how much I have to pay on a salary of $75000.
I came to singapore on 12th November, and my monthly salary is S$5500…there is no other allowance from the company..my entire salary is quoted as Basic, how much should I have to pay for this year and how much it will be for the next year. please advise me on the same..I am confused by many collegues…
Omar, yes, you have to pay tax for your company, as well as income tax for your personal income.
Advisory: I’m not a tax expert. Always consult with the relevant experts / authorities.
Suresh, for “Year of Assessment 2008” (YA2008), your income for 2007 will be taken into account. Since it’s not much, I don’t think you’ll have to pay any tax in 2008.
But in YA2009, your entire 2008 income will be taken into account – $5,500 x 12 (assuming no other income) – and you’ll be taxed on that. So you’ll be paying taxes in 2009.
Advisory: Always check with the relevant authorities on tax matters.
I got a job with sg $81,000 PER Annum. i am going to stay as a bachelor in singapore and i am from india, So how much Tax i want to pay for a year ?
From July 12th to till date i’m working in singapore.
My total earned salary from July 12th to Dec 31st is around S$ 25,000. Its less than 183 days.
Could you please tell me how much tax i need to pay for this.
Thanks in advance.
Mukesh Kanna .J
The YA2007 tax rate for non-residents is 15% for employment income and 20% for other income.
Please contact IRAS or a tax consultant to be sure.
For definition of “tax resident”, see:
Comparison of tax resident and non-resident:
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I arrived in Singapore 19th June and I’ve been employed in Singapore apart from 24 days out of Singapore, giving me a total of 172 days for year ending 2007.What is the situation for paying tax here as I’m less than 183 days in the country.
A. White, are you aware of the 2-year concession? If you are here for 183 days straddling 2 years, you can be taxed as a resident. I believe it’s better to be taxed as a resident in many cases.
See this for details:
Comparison of tax resident and non-resident:
As always, contact IRAS or a tax consultant to be sure.
Hi, I have monthly transport allowance as part of my basic package and I’ve been taxed for the allowance part as well though I spend lots of money as taxi expense for both office travel as well as to support client as I don’t have a car. I am not sure how to claim tax concession for this expense. In addition, I spent lots of money as client and team entertainment to keep my team floating. My company policies says only 10 dollars per quarter is claimable. Can you advice how to claim tax relief for this as well. Both taxi and entertainment doesn’t come with proper bills always (like sea food center – 100/200 a week), which makes it even more difficult. Please advice.Thanks in advance.
I have been offered a job in a Singapore registered company, having operating office outside singapore at US$132,000 per annum. I will be non resident as I will be in the operating office. Kindly advise
a) what should be my salary structure to pay minimum taxes
b) What are the relief I may get and under what scheme as non resident
c) May tentative total tax payment and the rate of such tax.
d)Will my employer will deduct TDS, if yes at waht rate?
Thanking you in anticipation of your reply.
DDS & Raj Islam, my humble advice is for you to discuss your issues with your respective employers.
The company is new and yet to have full set up in Singapore and hence asked me to inform them the expected salary structure by me from them.Pl. advise me with all my queries. Shall be oblidged for the same.
Raj, I’m sorry I can’t help you. Maybe you can try talking to a tax consultant or directly contact IRAS.
I got s$4360 of total salary in 2007, so Am I need to pay for tax of year 2007.
I earned $4000 in 2007. I have received the IRA form
am i suppose to file the form? Would it be all rite if i don’t? As i am currently studying.
Pls advice me
sporean dude here but clueless on how to claim tax relief for 2 kids.
1. With wife working and earning 50k PA am I still entitled to child tax relief? ( I earn 80kPA)
2. Tips of areas to look out for to reduce taxes?
3.Best way to save money on taxes is…..