How Salary Deductions Work in Singapore (2026 Guide) (2026)
Singapore’s payslip is dominated by one line — CPF — and 2026 moved its ceiling. Here’s the complete deduction picture for Year of Assessment 2026.
CPF — the 2026 rates and the new ceiling
Employee rates for 2026 (citizens; PRs graduated as in the calculator page; foreigners 0%): 20% (≤55), 18% (>55–60), 12.5% (>60–65), 7.5% (>65–70), 5% (>70). The ordinary-wage ceiling is S$8,000/month from 1 January 2026 (up from S$7,400) — the final phase of the Budget-2023 step-up. Additional wages (bonuses, AWS) attract CPF only within S$102,000 minus ordinary wages for the year, and total CPF per employee is capped at S$37,740/year.
PR graduated rates (≤55, wages above S$750): Year 1 — 5% employee / 4% employer; Year 2 — 15% / 9%; Year 3+ — full citizen rates. (A joint application can opt into higher rates earlier.)
YA 2026 income tax
| Chargeable income | Rate |
|---|---|
| First S$20,000 | 0% |
| Next S$10,000 | 2% |
| Next S$10,000 | 3.5% |
| Next S$40,000 | 7% |
| Next S$40,000 | 11.5% |
| Next S$40,000 | 15% |
| Next S$40,000 | 18% |
| Next S$40,000 | 19% |
| Next S$40,000 | 19.5% |
| Next S$40,000 | 20% |
| Next S$180,000 | 22% |
| Next S$500,000 | 23% |
| Above S$1,000,000 | 24% |
Reliefs: CPF relief (actual compulsory employee contributions), earned-income relief (S$1,000 / S$6,000 / S$8,000 by age), total personal reliefs capped at S$80,000. No rebate for YA 2026. Non-residents pay the higher of 15% flat or resident rates without reliefs.
Employer extras
Employer CPF (17% at ≤55), Skills Development Levy 0.25% (S$2–11.25/month, on all employees including foreigners), and small ethnic/community fund deductions (CDAC/MBMF/ECF/SINDA, ~S$0.50–2/month).
Coming in 2027 (not 2026)
Senior-worker CPF rises from January 2027: >55–60 to 35.5% total and >60–65 to 26% total (employer share +0.5pp each). Don’t apply these to 2026 payroll.
Worked examples
Example 1 — citizen ≤55, S$6,000/month: CPF S$1,200 → chargeable S$56,600 → tax S$1,712/year → net S$4,657.33/month.
Example 2 — PR Year 1, S$6,000/month: CPF S$300 → tax S$2,468/year → net S$5,494.33/month.
Common mistakes
1. The 2027 rates applied a year early. Several guides show the raised senior-worker rates as 2026 — they start January 2027.
2. Forgetting the AW ceiling. A big bonus doesn’t all attract CPF — only S$102,000 minus ordinary wages for the year does.
3. Assuming the rebate repeats. The SG60 60% rebate was YA 2025 only — budget 2026 with zero rebate.
Try it: Singapore salary calculator →
Singapore — frequently asked questions
Singapore salary FAQs
How much CPF do I pay in 2026?
Citizens ≤55: 20% employee (to the S$8,000/month ceiling). Older bands: 18/12.5/7.5/5%. PRs: graduated 5%/15% in Years 1–2.
What’s new for CPF in 2026?
The ordinary-wage ceiling rose S$7,400 → S$8,000/month on 1 January 2026 — the last step of the Budget-2023 plan.
Is there a YA 2026 tax rebate?
No — the 60% SG60 rebate (capped S$200) was for YA 2025 only.
How are foreigners taxed?
No CPF and no personal reliefs; employment income taxed at the higher of a 15% flat rate or the resident progressive rates.