Singapore income tax is one of the primary reasons finance and professional talent relocates here from London, Hong Kong, Mumbai and Sydney. But the headline “low tax” story is more nuanced than the brochures suggest — because whether you pay the favourable progressive resident rates or the flat 15% non-resident rate depends entirely on how long you are in Singapore each year. Getting this wrong costs money.
This guide explains how Singapore income tax works for expats in 2026: resident versus non-resident rates, tax reliefs available to foreigners, the 183-day rule, filing deadlines, and the key practical steps for newly arrived Employment Pass holders. All figures are drawn from the Inland Revenue Authority of Singapore (IRAS).
Singapore Income Tax for Expats: Resident vs Non-Resident Rates
The single most important question for a newly arrived expat is: are you a tax resident or a non-resident for Singapore income tax purposes? The answer determines both your rate and your eligibility for tax reliefs.
Tax Resident Rates (Year of Assessment 2026)
Singapore resident income tax uses a progressive structure. Per IRAS, the YA2026 rate table (applied to income earned in calendar year 2025) is:
| Chargeable Income (SGD) | Rate | Gross Tax |
|---|---|---|
| First 20,000 | 0% | SGD 0 |
| Next 10,000 (up to 30,000) | 2% | SGD 200 |
| Next 10,000 (up to 40,000) | 3.5% | SGD 550 |
| Next 40,000 (up to 80,000) | 7% | SGD 3,350 |
| Next 40,000 (up to 120,000) | 11.5% | SGD 7,950 |
| Next 40,000 (up to 160,000) | 15% | SGD 13,950 |
| Next 40,000 (up to 200,000) | 18% | SGD 21,150 |
| Next 40,000 (up to 240,000) | 19% | SGD 28,750 |
| Next 40,000 (up to 280,000) | 19.5% | SGD 36,550 |
| Next 40,000 (up to 320,000) | 20% | SGD 44,550 |
| Next 180,000 (up to 500,000) | 22% | SGD 84,150 |
| Next 500,000 (up to 1,000,000) | 23% | SGD 199,150 |
| Above 1,000,000 | 24% | Above SGD 199,150 |
A tax resident earning SGD 200,000 in Singapore pays approximately SGD 21,150 in gross tax before reliefs — an effective rate of roughly 10.6%. After applying standard reliefs (earned income, CPF if applicable, spouse, children), the effective rate typically falls to 8–12% for most EP holders at this income level. This compares favourably with income tax in the UK (40–45%), Australia (32.5–45%), and most continental European jurisdictions.
Non-Resident Rates for Singapore Income Tax
Non-residents pay a flat rate of 15% on employment income, or the progressive resident rate applied without personal reliefs — whichever results in a higher tax payment. This means non-residents always pay at least 15% of employment income.
Other non-resident income (director fees, consultant fees, rental income) is taxed at 24%. Non-residents cannot claim personal reliefs — earned income relief, spouse relief, child relief, or parenthood tax rebates are not available.
The 183-Day Rule: How Singapore Determines Tax Residency
Singapore uses a calendar-year physical presence test. Per IRAS, you are treated as a tax resident for a given Year of Assessment if you:
- Are a Singapore Citizen or Permanent Resident (automatically resident); or
- Are a foreigner who stayed or worked in Singapore for 183 days or more in the calendar year preceding the Year of Assessment
Practical example: if you arrive in Singapore on 1 July 2025 and work continuously until 31 December 2025, you will have spent approximately 184 days in Singapore in 2025 and will be treated as a tax resident for YA2026 (income earned in 2025). This means you pay resident progressive rates for that full year — even though you were only in Singapore for the second half.
IRAS also applies an administrative concession for new arrivals on work contracts of at least two years: if you are here for 183 or more days in your first year, IRAS will treat you as resident for that first year even if the literal 183-day count was not met. For the full residency rules, see our companion Singapore Tax Residency and the 183-Day Rule guide.
Singapore Income Tax Reliefs Available to Expats
Only tax residents can claim personal reliefs. The total personal relief cap is SGD 80,000 per Year of Assessment. Key reliefs relevant to EP holders include:
| Relief | Amount (SGD) | Notes |
|---|---|---|
| Earned Income Relief | 1,000 | Available to all tax residents with employment income; higher for those 55 and above |
| Spouse Relief | 2,000 | Claimable if spouse earns less than SGD 4,000 per year and lives in Singapore |
| Qualifying Child Relief | 4,000 per child | Per qualifying child ordinarily resident in Singapore |
| CPF Relief | Varies | Not applicable to EP holders (EP holders do not contribute to CPF) |
| Course Fee Relief | Up to 5,500 | For approved courses of study |
| Life Insurance Relief | Up to 5,000 | For life insurance premiums if CPF contributions are below threshold |
Singapore Citizens and PRs can also claim CPF-related reliefs (Supplementary Retirement Scheme top-ups, voluntary CPF contributions), which are not available to EP holders. This is one reason the effective tax rate for Singapore citizens at comparable salary levels is often lower than for EP holders.
Singapore Income Tax Filing: Deadlines and Process for Expats
Singapore’s income tax filing season opens on 1 March each year. The filing deadline for YA2026 (income earned in calendar year 2025) was 18 April 2026 for paper returns and 18 April 2026 for e-Filing via myTax Portal on the IRAS website.
You must file a Singapore income tax return if your annual income exceeds SGD 22,000. Most EP holders will need to file. The process is straightforward:
- Log into myTax Portal using your SingPass
- Verify your income — if your employer participates in the Auto-Inclusion Scheme (AIS), employment income is pre-filled automatically
- Claim eligible reliefs (earned income, spouse, child, etc.)
- Review the computed tax, pay by the stated due date (typically November of the assessment year)
If your employment ends and you are leaving Singapore permanently, your employer must file Form IR21 with IRAS and withhold your salary for up to 30 days pending IRAS clearance. For full detail on this process, see our IR21 Tax Clearance: When and How to File guide.
What Singapore Does Not Tax: No CGT, No Inheritance Tax, No Dividend Tax
Singapore’s appeal to high-earning expats is not only its low income tax rates but the categories of income it does not tax at all:
- No capital gains tax: Gains from the sale of investments, property (subject to conditions), and businesses are not taxable in Singapore. This is a material advantage for professionals who receive stock options, restricted shares, or who hold investment portfolios
- No inheritance tax: Singapore abolished estate duty in 2008. There is no inheritance or estate tax on assets passed to heirs
- No tax on dividends from Singapore-resident companies received by individuals: Singapore operates a one-tier corporate tax system — once a company pays corporate tax on its profits, dividends paid to shareholders carry no further tax liability
- Foreign-sourced income exemption: Foreign-sourced dividends, branch profits, and service income received by resident individuals are generally exempt from Singapore tax if they have been subject to foreign tax of at least 15%
Singapore Income Tax and Double Tax Treaties
Singapore has an extensive network of Double Tax Avoidance Agreements (DTAAs) — over 90 treaties in force. These treaties prevent the same income from being taxed twice. The most relevant for EP holders arriving from major expat source countries include:
- UK: UK–Singapore DTA (1997) — Singapore employment income taxable only in Singapore once UK non-residency is established
- India: India–Singapore DTAA (1994) — employment income taxable in the country of employment; TRC from IRAS is the key document to claim DTAA benefits in India
- Australia: Australia–Singapore DTA — employment income taxable in Singapore; Australian-source passive income may still attract Australian tax
- USA: No US–Singapore income tax treaty exists. US citizens and Green Card holders remain subject to US worldwide income tax regardless of Singapore residency — seek US cross-border tax advice
Singapore Income Tax for Expats: Key Takeaways
For most Employment Pass holders in Singapore earning SGD 120,000–500,000 per year, the effective Singapore income tax rate is 10–20% — substantially lower than equivalent rates in the UK, Australia, or most of Europe. The 183-day residency test is straightforward to meet for anyone on a full-year employment contract, and Singapore’s myTax Portal makes filing a largely automated process for employees.
If you are planning a relocation and need guidance on your Employment Pass application, Singapore Employment Agency (Little Big Employment Agency) is a MOM-licensed agency that handles EP, S Pass and PEP applications. For Singapore tax advisory, corporate structuring or company incorporation, Raffles Corporate Services provides comprehensive support for individuals and businesses moving to Singapore.
— The Editorial Team, Little Big Employment Agency