Income tax calculator
Take-home pay after income tax and compulsory retirement contributions, with any contribution ceiling applied.
Take-home pay
Estimate$108,333
5.5% effective tax against a 11.5% marginal rate
- Income tax
- $7,467.00
- Your CPF at 20.0%
- $19,200
- Employer CPF
- $16,320
| Annual salary | $120,000 |
|---|---|
| Bonus | $15,000 |
| Salary CPF applies to | $96,000 |
| Your CPF contribution | -$19,200 |
| Reliefs | $19,200 |
| Chargeable income | $115,800 |
| Income tax | -$7,467.00 |
| Take-home | $108,333 |
- The Ordinary Wage ceiling is $8,000 a month, so CPF applies to $96,000 of your salary and nothing above it.
- Contribution rates step down with age. At 36 you contribute 20.0%, and the rate falls again at 55, 60, 65 and 70.
On $120,000 the monthly salary is $10,000, above the $8,000 contribution ceiling, so contributions apply to $96,000 only.
How this is calculated
How this is calculated
Contribution ceilings can be monthly
Singapore caps CPF at $8,000 of monthly salary rather than an annual figure, so a $120,000 salary contributes on $96,000. Applying an annual cap to the whole salary produces a different result.
contributory salary = min(monthly, ceiling) × 12Rates often vary by age
Singapore steps employee contributions down from 20% to 5% across bands at 55, 60, 65 and 70, so identical salaries produce different take-home depending on age alone.
Contributions can reduce taxable income
Employee CPF is relieved against income up to $20,400, within an overall $80,000 relief cap, so the tax base is well below gross pay.
Worked example: $120,000 salary plus a $15,000 bonus
| Salary | $120,000 |
|---|---|
| Bonus | $15,000 |
| Contributions apply to | $96,000 |
|---|---|
| Employee rate | 20% |
Contribution ceilings and rates differ by country. Pick a country above for the rules that apply to your payslip.
What this assumes
- Resident for the full tax year.
- Standard contribution rates.
- Basic reliefs only.
- Employment income only.
Where this commonly goes wrong
- Bonuses often sit under a separate contribution ceiling, so the effective rate on them differs from salary.
- Non-residents are frequently taxed on a different basis with no reliefs available.
- Overall relief caps mean additional deductions can stop reducing tax entirely past a threshold.
Questions
How do contribution ceilings work?
Singapore caps CPF at $8,000 of monthly salary, so a $120,000 annual salary contributes on $96,000. Because the cap is monthly, an evenly-paid and an unevenly-paid salary can contribute different totals.
Why does age change my take-home pay?
Singapore steps CPF rates down at 55, 60, 65 and 70, from 20% to 5%. Two people earning identically take home different amounts purely because of which band they are in.
Do retirement contributions reduce tax?
In Singapore, yes — employee CPF is relieved against income up to $20,400, within an $80,000 overall relief cap, so chargeable income is materially below gross pay.
How are bonuses treated differently from salary?
Singapore puts bonuses under a separate Additional Wage ceiling calculated from the year’s Ordinary Wages, rather than the $8,000 monthly cap. The effective contribution rate on a bonus is often lower than on salary.
What does a progressive band table mean in practice?
Each rate applies only to the slice of income inside its band. Singapore runs 13 bands from 0% on the first $20,000 up to 24% above $1,000,000, so the effective rate sits far below the marginal one.
Related tools
Sources
General estimate based on published IRAS and CPF Board figures for the current period. Not tax advice. Confirm your position with IRAS or the CPF Board.
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