Singapore Income Tax Hacks: Save Up to $8,000 with These Reliefs!

How to Save Nearly $8,000 on Income Tax in Singapore?

Let’s say you (a Singaporean or Singapore Permanent Resident) earn an annual gross income of SGD 150,000. Without tax reliefs, your estimated tax would be SGD 12,100—that’s almost one month’s salary gone! But what if you could cut your tax bill significantly just by using a few smart relief strategies?

Here’s how:

1. Spouse Relief

  • If your spouse is not working, you’re eligible for a $300 tax relief.
  • Tax savings: $300

2. Parent Relief

  • If both your parents or parents-in-law are living with you, you can claim $9,000 per parent.
  • Total relief: $18,000
  • Tax savings: $2,700

3. Life Insurance Relief

  • If you don’t have CPF contributions yet, you can claim life insurance premiums up to $5,000.
  • Let’s assume your annual life insurance premium is $4,800.
  • Tax savings: $720

4. Supplementary Retirement Scheme (SRS) Top-Up

  • You can top up your SRS account with up to $35,700 per year.
  • Tax savings: $4,253

Final Calculation:

Initial tax payable: $12,100
New total tax payable: $4,127.50
Total tax saved: $7,973

That’s equivalent to two people’s monthly salaries saved! 💰 Instead of paying extra tax, you could invest this money for your family’s future.

Take Action Now!

With proper planning, you can legally and smartly reduce your tax burden while preparing for financial security. Don’t wait until tax season—start optimizing your tax reliefs today!

Need help figuring out the best strategies for your financial goals? Let’s chat!

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Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek unbiased financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.

Published By:

Lidwina Teo 维娜

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