Tax
What is Chargeable Income?
The part of your income that is actually taxed: your total income minus allowable deductions and personal reliefs. Singapore’s progressive resident rates of 0% to 24% are applied to this figure, not to your gross pay.
How it’s calculated
Chargeable income is what’s left after you subtract allowable deductions (such as employment expenses and approved donations) and personal reliefs from your total income. Singapore’s progressive resident rates are applied to this figure, not your gross pay: the first $20,000 is tax-free, and rates rise in steps to 24% on income above $1,000,000.
Why it matters
Because the first $20,000 is untaxed and rates climb with income, reducing your chargeable income saves tax at your highest (marginal) rate. That’s why reliefs are worth more to higher earners. The overall personal income tax relief cap of $80,000 limits how far you can push your chargeable income down with reliefs.