How your take-home pay is worked out
In Singapore, two things come out of a resident employee's salary: your CPF contribution (deducted monthly) and income tax (assessed annually by IRAS). This calculator uses the official IRAS resident tax rates and CPF Board contribution rates for an employee aged 55 and below.
CPF (employee contribution)
If you're a Singapore Citizen or PR aged 55 or below, you contribute 20% of your wages to CPF (your employer adds 17%). CPF only applies up to the Ordinary Wage ceiling: $7,400/month in 2025, rising to $8,000/month in 2026. There is also an annual CPF wage ceiling of $102,000.
Income tax (resident rates)
| Chargeable income | Rate |
|---|---|
| First $20,000 | 0% |
| $20,001 – $30,000 | 2% |
| $30,001 – $40,000 | 3.5% |
| $40,001 – $80,000 | 7% |
| $80,001 – $120,000 | 11.5% |
| $120,001 – $160,000 | 15% |
| above $160,000 | 18% – 24% |
Your chargeable income is your salary minus your CPF contribution (CPF Relief) and the $1,000 Earned Income Relief — so tax is not charged on your full gross.
Example: $80,000 salary (age 30, 2025)
Employee CPF is 20% × $80,000 = $16,000. Chargeable income is $80,000 − $16,000 − $1,000 = $63,000, giving income tax of $2,160. Take-home is $61,840 a year (about $5,153 a month before the annual tax bill).
What this calculator does not include
- Other personal reliefs (spouse, child, parent, SRS, life insurance) beyond CPF and Earned Income Relief.
- The one-off Personal Income Tax Rebate (60% capped $200 for YA2025).
- Age bands above 55 (CPF rates differ) and Additional Wages / bonuses.
Frequently asked questions
Is CPF taken from my pay?
Yes — your 20% employee share is deducted monthly. Your employer's 17% is on top and goes into your CPF accounts too.
Why isn't income tax deducted monthly?
Singapore assesses income tax annually. IRAS sends a bill the following year; there's no monthly PAYE withholding. This calculator shows the annual tax so you can plan.
Is tax on my full salary?
No. Your CPF contribution and the $1,000 Earned Income Relief are deducted first, so you're taxed on your chargeable income, not your gross.
More Singapore calculators
This calculator provides estimates for a resident employee aged 55 and below based on published IRAS tax rates and CPF Board contribution rates, and is for general information only — it is not financial or tax advice. It applies CPF Relief and the $1,000 Earned Income Relief but excludes other reliefs, rebates and Additional Wages. For your exact position see IRAS and CPF Board. Source: IRAS, CPF Board.