.svg)
If you have recently become a Singapore Permanent Resident, or you are thinking about applying, income tax is one of those things worth understanding early. Singapore's tax system is simpler than you might expect, and PRs enjoy real advantages over foreign employees on work passes. Below, we cover the tax residency rules, the progressive rates for YA 2026, reliefs that can lower your bill, and filing pitfalls to avoid.
What makes PRs tax residents in Singapore?
The biggest tax advantage of holding PR status is automatic tax residency. If you normally reside in Singapore (apart from temporary absences like holidays or business trips), you are treated as a tax resident from the day your PR takes effect. There is no need to satisfy the 183-day physical presence rule that applies to Employment Pass holders.
This distinction matters because tax residency determines which rate schedule applies to your income. Tax residents pay progressive rates starting from 0%, while non-residents are taxed at a flat 15% on employment income or the progressive resident rates, whichever results in a higher tax amount. For most salary levels, the progressive rates work out lower, so PR holders benefit from resident status right away.
By contrast, an EP holder who arrives in Singapore partway through the year and clocks fewer than 183 days could end up classified as a non-resident for that first Year of Assessment, potentially facing a higher tax bill. PRs do not have this problem.
Tip: "Normally residing" means Singapore is your usual place of living. Short trips abroad for work or holidays do not change your resident status. If you relocate overseas for an extended period, different rules may apply.
Singapore income tax rates for PRs (YA 2026)
Singapore uses a progressive tax system, meaning the rate increases as your income rises. The rates below apply from YA 2024 onwards and remain in effect for YA 2026 (the assessment year for income earned from 1 January to 31 December 2025).
The top marginal rate of 24% was introduced from YA 2024 for chargeable income above $1 million. Some older guides still show 22% as the highest rate, but that figure is now outdated.
Sample tax calculations
To make the rates more concrete, here is what a PR at common salary levels would owe before reliefs:
Annual income of $60,000: Tax on first $40,000 is $550. Tax on remaining $20,000 at 7% is $1,400. Total: $1,950.
Annual income of $100,000: Tax on first $80,000 is $3,350. Tax on remaining $20,000 at 11.5% is $2,300. Total: $5,650.
Annual income of $150,000: Tax on first $120,000 is $7,950. Tax on remaining $30,000 at 15% is $4,500. Total: $12,450.
These amounts are before applying any tax reliefs. Most PRs will owe less after claiming CPF relief, earned income relief, and other applicable deductions.
Tax rebate
For YA 2025 (income earned in 2024), the government provided a 60% personal income tax rebate capped at $200. Whether a similar rebate applies for YA 2026 has not been confirmed at the time of writing. Check the IRAS website for updates.
Tax reliefs and deductions for PRs
Tax reliefs reduce your chargeable income, which lowers the amount of tax you owe. Singapore caps total personal reliefs at $80,000 per Year of Assessment. Here are the reliefs most relevant to PRs.
Earned income relief
This is an automatic relief based on your age:
- Below 55 years old: $1,000
- 55 to 59 years old: $6,000
- 60 years old and above: $8,000
You qualify as long as you had employment or trade income during the year.
CPF relief: the biggest PR tax benefit
CPF relief is, for most PRs, the single largest tax deduction available. As a PR, both you and your employer make mandatory Central Provident Fund contributions. The employee's share (up to 20% of ordinary wages capped at the CPF Ordinary Wage ceiling of $8,000 per month from January 2026, for those aged 55 and below) is deductible from your taxable income as CPF relief.
For a PR earning $8,000 or more per month (the current CPF Ordinary Wage ceiling from January 2026), that translates to up to $19,200 per year in CPF relief alone. EP holders do not contribute to CPF and therefore cannot claim this relief. If you want to understand how CPF works in more detail, see our CPF guide for PRs.
You can also claim CPF Cash Top-Up Relief if you make voluntary top-ups to your Special Account or MediSave Account, up to $8,000 per year.
NSman relief
If you are a citizen or PR who completed National Service, you may claim NSman relief. The base amount for NSman Self relief is $1,500, with higher amounts for those who performed NS activities in the preceding year. NSman Wife relief is $750 and NSman Parent relief is $750 per parent. IRAS automatically grants this relief based on records from MINDEF, SPF, and SCDF. This relief is only for those who actually served NS; it does not apply to all PRs.
Course fees relief (no longer available from YA 2026)
The course fees relief, which previously allowed a deduction of up to $5,500 for approved courses, has lapsed from YA 2026. If you claimed this in previous years, be aware it is no longer available. You cannot deduct course fees on your YA 2026 tax return.
Supplementary Retirement Scheme (SRS)
Contributions to your SRS account are tax deductible up to $15,300 per year for Singapore citizens and PRs. If you have already maximised your CPF contributions and want another way to lower your tax bill, SRS is worth considering. The SRS cap for foreigners (non-PR, non-citizen) is $35,700, but as a PR your cap is the lower amount.
Donations
If you make qualifying donations to Institutions of a Public Character (IPCs), you can claim a 250% tax deduction. For example, a $1,000 donation gives you a $2,500 deduction from your chargeable income. IRAS automatically includes most qualifying donations in your tax assessment, so you generally do not need to claim these manually.
Other reliefs
Several other reliefs may apply depending on your situation:
- Spouse relief: $2,000 if your spouse had income below $8,000 in the preceding year (threshold increased from $4,000 to $8,000 from YA 2025)
- Child relief: $4,000 per qualifying child
- Working Mother's Child Relief (WMCR): For children born before 1 January 2024, the relief is 15% of earned income for the first child, 20% for the second, and 25% for the third and subsequent children. For children born on or after 1 January 2024, the relief is a fixed amount of $8,000 for the first child, $10,000 for the second, and $12,000 for the third and subsequent children
- Parent relief: $9,000 if the parent lives with you, or $5,500 otherwise
- Life insurance relief: Available if your CPF contributions are below $5,000
Tip: The $80,000 overall relief cap means high earners with multiple reliefs should check their total. If your combined reliefs exceed $80,000, only $80,000 will be applied.
How PR tax compares with Employment Pass holders
If you are on an EP and weighing up whether to apply for PR, this is how the two compare on tax.
At any given salary level, a PR typically pays the same or less income tax than an EP holder. The trade-off is CPF: a portion of your salary goes into your CPF accounts rather than your bank account. But those contributions reduce your taxable income, earn interest, and fund your housing and retirement. Most PRs find the net effect is positive.
For EP holders considering whether to apply for PR, the tax picture is one of several practical benefits worth weighing up, along with housing eligibility, school options for your children, and longer-term residency security. If you are on an EP and want to understand the full pathway, see our Employment Pass to PR guide.
What is not taxable in Singapore
Before worrying about your tax bill, it helps to know what Singapore does not tax. There is no capital gains tax, no inheritance tax, and no tax on dividends received from Singapore-resident companies. Interest from approved bank deposits is also exempt.
For PRs who hold investments or plan to build wealth here, this matters. Your stock portfolio gains, property capital gains, and Singapore company dividends stay out of your taxable income entirely.
How to file your income tax as a PR
Who needs to file
You need to file an income tax return if your annual income is $22,000 or more, or if you have been issued a tax return (Form B or B1) by IRAS. If your total income is below $22,000 and you have no other income to declare, you may not need to file.
Filing period
For YA 2026, the filing period runs from 1 March to 18 April 2026 through the myTax Portal.
IRAS strongly encourages e-filing, and most taxpayers use the myTax Portal at mytax.iras.gov.sg. The system pre-fills employment income from your employer's submissions, so in many cases you only need to verify the figures, add any additional income, and claim your reliefs.
No-Filing Service
Over two million taxpayers in Singapore benefit from IRAS's No-Filing Service (NFS). If your employer participates in the Auto-Inclusion Scheme and your tax situation is simple (no additional income to declare, no new relief claims to make), you may receive a Direct Notice of Assessment without needing to file at all. Check your myTax Portal to see if you qualify.
What income to declare
As a tax resident, you need to declare all Singapore-sourced income, including:
- Employment income (salary, bonuses, benefits-in-kind, stock options)
- Rental income from Singapore property
- Income from a trade, business, or profession
- Director fees
- Any other Singapore-sourced income
You do not need to declare foreign-sourced income received in Singapore, as it is generally tax-exempt for individuals (more on this below).
Which form to use
Most employed PRs file using Form B1. If you have self-employment or business income, you use Form B. Non-residents use Form M, but as a PR you should not need this form.
Common tax pitfalls for Singapore PRs
Foreign income
This trips up a lot of new PRs. Singapore operates a territorial tax system, so foreign-sourced income received in Singapore by resident individuals is generally tax-exempt. If you earn interest from an overseas bank account, dividends from foreign shares, or rental income from property abroad, these are typically not taxable in Singapore.
The main exception is income earned through a Singapore partnership. If you are unsure about a specific source of foreign income, check the IRAS guidance on overseas income.
Rental income from Singapore property
Many PRs purchase property in Singapore and rent it out. Rental income is taxable and must be reported. You can deduct related expenses such as mortgage interest, property tax, repair and maintenance costs, insurance, and agent commissions. Alternatively, if you prefer not to track actual expenses, you can claim a deemed expense deduction of 15% of your gross rental income.
You report the net rental income (gross rent minus allowable deductions) in your annual filing. Keep all supporting documents for at least five years, as IRAS may request them for verification.
Tax clearance when leaving Singapore
If you are a PR who is leaving Singapore permanently or going on an overseas posting of more than three months, your employer is required to file Form IR21 at least one month before your last working day. During the clearance process, your employer must withhold all monies due to you until IRAS issues a clearance letter. Processing typically takes about 21 days.
If you stop working but continue living in Singapore, tax clearance is not required. This only applies when you are physically leaving the country for an extended period. For more on what happens when PRs leave Singapore, see our Re-Entry Permit renewal guide.
Penalties for late or non-filing
If you are required to file and miss the deadline, IRAS may impose a penalty of up to $1,000 or take legal action for non-filing. If you realise you have missed the deadline, file as soon as possible. IRAS does send reminders, but the responsibility is on you to file on time.
Not claiming all available reliefs
Some PRs leave money on the table by skipping reliefs they qualify for. It is worth going through the full list on the IRAS website each year. New PRs in particular sometimes miss CPF relief (it may not be obvious that your mandatory CPF contributions are tax deductible) or forget about SRS contributions.
PR tax filing checklist
Use this checklist to make sure you have everything in order before you file:
- Check your myTax Portal: log in to see if you qualify for the No-Filing Service or if a pre-filled return is waiting for you
- Verify your employment income: confirm the salary, bonus, and benefits-in-kind figures match your records
- Gather rental income records: if you rent out property, have your gross rental and expense receipts ready
- Review your CPF contributions: check your CPF statement to confirm the total employee contributions for the year
- Claim all eligible reliefs: go through earned income, CPF, spouse, child, parent, SRS, and donation reliefs
- Check the $80,000 relief cap: add up your total reliefs to see if the cap applies
- Report any other income: freelance work, director fees, trade income, or other Singapore-sourced income
- File by 18 April 2026: e-file through myTax Portal
- Keep records for 5 years: IRAS may request supporting documents for verification
Frequently asked questions
Do Singapore PRs pay more tax than citizens?
No. Singapore PRs and citizens are taxed at the same progressive rates. Both are treated as tax residents. The main difference is that citizens have access to slightly higher CPF contribution rates from employers and a few additional reliefs (such as the full range of NSman reliefs), but the tax rate schedule is identical. If you are curious about the broader differences between PR and citizenship, see our citizenship guide.
How much tax does a PR earning $100,000 pay?
Before reliefs, the tax on $100,000 of chargeable income is approximately $5,650. After CPF relief and earned income relief, the effective tax payable is typically lower. The exact amount depends on your age and the reliefs you claim.
Is CPF tax deductible for PRs?
Yes. Mandatory employee CPF contributions are fully deductible as CPF relief. This is one of the biggest tax advantages of PR status over an Employment Pass, since EP holders do not contribute to CPF and cannot claim this deduction.
Do I need to file taxes if I received a No-Filing Service notification?
If IRAS has informed you that you do not need to file, and you have no additional income to declare and no new reliefs to claim, you do not need to file. However, if you want to claim reliefs that are not automatically applied, you should still file or amend your assessment.
Is foreign income taxable for Singapore PRs?
Generally no. Foreign-sourced income received in Singapore by tax residents is exempt from tax. This includes overseas investment returns, foreign rental income, and interest from overseas bank accounts. The main exception is foreign income received through a Singapore partnership.
What happens if I miss the filing deadline?
IRAS may impose a penalty of up to $1,000 for late filing. Continued non-filing can result in a summons to court. If you have missed the deadline, file your return as soon as possible to minimise penalties.
Can new PRs claim tax reliefs in their first year?
Yes. As long as you meet the qualifying conditions for each relief, you can claim them from your first year as a PR. CPF relief kicks in once your employer starts making CPF contributions, which happens once your PR status is effective.
What is Form IR21 and when do I need it?
Form IR21 is a tax clearance form that your employer files with IRAS when you are leaving Singapore permanently or going on an overseas posting exceeding three months. Your employer is responsible for filing it at least one month before your departure. You do not file IR21 yourself.
Planning ahead
If you have not yet obtained PR status and are weighing whether to apply, the tax picture is worth factoring in. CPF relief alone can shave thousands off your annual tax bill, and guaranteed resident rates remove the risk of being taxed at the higher non-resident flat rate. These sit alongside other PR benefits like housing eligibility and school access for your children.
Ready to start your PR application? Our PR application checklist covers every document you need. If you would like professional guidance on your specific profile, get in touch with our consultants to discuss your options.
This article is for general information only and does not constitute tax advice. Tax rules can change, and individual circumstances vary. For the latest rates, reliefs, and filing requirements, always refer to the Inland Revenue Authority of Singapore (IRAS) website.
