Each year, the Inland Revenue Authority of Singapore (IRAS) allows you to claim a maximum personal tax relief of $80,000.
For some of these tax reliefs, you don’t have to do anything to be eligible. For example, the Earned Income Relief is given to you for simply earning a wage in Singapore, and based on your age. Similarly, the NSman Relief is given to NSmen, spouses of NSmen and parents of NSmen. The CPF Relief is given on the CPF contribution component of your salary.
For other types of tax reliefs, though, you only qualify if you do something. For example, you can get a dollar-for-dollar tax relief on up to $15,300 for contributions to your Supplementary Retirement Scheme (SRS) Account each year.
If you want to make SRS contributions to lower your income tax bill next year, in YA2026, you have to make the top-ups by 31 December 2025. As we’re into the final weeks of the year, now is a good time to start crunching the numbers.
Read Also: CPF Top-Ups VS SRS Top-Ups: Which Should You Choose?
The Amount Of Tax Savings You Get Depend On Your Tax Bracket
In Singapore, we have a progressive income tax system. This means you don’t just pay more when you earn more, but a higher proportion of your income will go to income tax.
For example, if you have a chargeable income of $30,000 a year, you have to pay an income tax of $200. If your chargeable income is $40,000, you have to pay $550 in income tax – which is more than double for earning just $10,000 more.
And, if you have a chargeable income of $120,000 a year, you have to pay $7,950 a year. Again, you may earn 3x just more than someone earning $40,000, but you’re paying nearly 15x the amount of income tax.
If you can reduce your chargeable income, especially when you’re in higher income brackets, you can end up saving a sizeable amount in income taxes. How much exactly will depend on which tax bracket you are in.
Here’s how the tax bracket looks:
| Chargeable Income in YA2026 | Income Tax Rate | Gross Tax Payable |
| First $20,000 Next $10,000 | 0% 2% | $0 $200 |
| First $30,000 Next $10,000 | – 3.5% | $200 $350 |
| First $40,000 Next $40,000 | – 7% | $550 $2,800 |
| First $80,000 Next $40,000 | – 11.5% | $3,350 $4,600 |
| First $120,000 Next $40,000 | – 15% | $7,950 $6,000 |
| First $160,000 Next $40,000 | – 18% | $13,950 $7,200 |
| First $200,000 Next $40,000 | – 19% | $21,150 $7,600 |
| First $240,000 Next $40,000 | – 19.5% | $28,750 $7,800 |
| First $280,000 Next $40,000 | – 20% | $36,550 $8,000 |
| First $320,000 Next $180,000 | – 22% | $44,550 $39,500 |
| First $500,000 Next $500,000 | – 23% | $84,150 $115,000 |
| First $1 million In excess of $1 million | – 24% | $199,150 24% of excess income |
Exactly How Much Can You Save In Income Tax?
Let’s get into the numbers crunching, so you don’t have to – or, at least so your life is a little easier. As mentioned, the tax savings you get will depend on your tax bracket.
Let’s assume you make the maximum $15,300 SRS top-ups (and do not exceed the $80,000 personal income tax relief cap). Here’s how much tax savings you can expect to enjoy:
| Chargeable Income | Income Tax Payable | New Chargeable Income If You Make $15,300 SRS Top-Up | New Income Tax Payable | Tax Savings |
| $20,000 | $0 | $4,700 | $0 | No savings |
| $30,000 | $200 | $14,700 | $0 | $200 |
| $40,000 | $550 | $24,700 | $94 | $456 |
| $80,000 | $3,350 | $64,700 | $2,279 | $1,071 |
| $120,000 | $7,950 | $104,700 | $6,190.50 | $1,759.50 |
| $160,000 | $13,950 | $144,700 | $11,655 | $2,295 |
| $200,000 | $21,150 | $184,700 | $18,396 | $2,754 |
| $240,000 | $28,750 | $224,700 | $25,843 | $2,907 |
| $280,000 | $36,550 | $264,700 | $33,566.50 | $2,983.50 |
| $320,000 | $44,550 | $304,700 | $41,490 | $3,060 |
| $500,000 | $84,150 | $484,700 | $80,784 | $3,366 |
| $1 million | $199,150 | $984,700 | $195,631 | $3,519 |
| >$1 million | 24% of each dollar in excess of $1 million | Based on actual salary | Based on actual salary | Up to $3,672 |
For every dollar you contribute to your SRS Account, the amount you save per dollar of contribution is based on your income tax bracket. The more you earn, the more tax savings you ultimately enjoy.
How Much You Earn, And How Old You Are Will Determine If Topping-Up Your SRS Account Makes Sense
As you can see in the table above, the higher the income tax bracket you fall within, the more in tax savings you get for the same $15,300 top-up made to your SRS Account. For those with a chargeable income of $20,000, you may not want to make SRS contributions as you gain no tax savings.
If you earn $40,000, and make $15,300 in SRS contributions, you only pay $94 in income tax instead of $550. The $456 in tax savings you enjoy translates to about $0.07 in tax relief per dollar you contribute to your SRS.
Another way to think about this is that the more you earn, the higher the rate of tax savings per dollar.
If you earn $120,000, you enjoy $0.115 in tax relief per dollar you contribute to your SRS. At the highest end of the income tax bracket for those earning more than $1 million per year, you can save up to $3,672 in income tax – enjoying $0.24 for every dollar you contribute to your SRS.
Read Also: 8 Ways You Can (Legally) Reduce Your Income Tax For YA 2025
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