Singapore taxes residents on Singapore-sourced income at progressive rates from 0% to 24% — there is no capital gains tax, no inheritance tax, and no tax on foreign-sourced income (with limited exceptions). Foreign employees on Employment Passes are not required to contribute to CPF, giving a significant take-home pay advantage. The effective rate on $150,000 SGD is approximately 12–14%.
At a glance
Key Facts
Top Income Tax Rate
24% on chargeable income above $1,000,000 SGD
Effective Rate at $150K SGD
~12–14%
Capital Gains Tax
None
Foreign Income Tax
Generally exempt (territorial system)
CPF for Foreigners
Not required — major take-home advantage
Filing Deadline
April 15 (electronic); April 18 (paper)
Official Authority
Inland Revenue Authority of Singapore (IRAS)
Introduction
Singapore consistently ranks among the world's most business-friendly and tax-efficient jurisdictions for expat professionals. Progressive income tax rates topping out at 24% (compared to 45–55% across much of Europe), no capital gains tax, no inheritance tax, and territorial taxation of income make Singapore exceptionally attractive for mobile professionals and high earners.
This guide covers Singapore's income tax structure, Employment Pass requirements, how CPF works (and why most foreign expats are exempt), residency rules, and what US citizens working in Singapore must file with the IRS.
Section 01
Singapore's Income Tax Rates 2026
According to the Inland Revenue Authority of Singapore (IRAS), Singapore's resident income tax rates are progressive, starting at 0% and rising to 24% on income above $1,000,000 SGD. The rates were increased for high earners in 2024:
Chargeable Income (SGD)
Tax Rate
Up to $20,000
0%
$20,001–$30,000
2%
$30,001–$40,000
3.5%
$40,001–$80,000
7%
$80,001–$120,000
11.5%
$120,001–$160,000
15%
$160,001–$200,000
18%
$200,001–$240,000
19%
$240,001–$280,000
19.5%
$280,001–$320,000
20%
$320,001–$500,000
22%
$500,001–$1,000,000
23%
Above $1,000,000
24%
The effective rate at $150,000 SGD is approximately 12–14% — significantly lower than most European or North American jurisdictions at equivalent income levels.
Non-Resident Rates
Non-residents (present in Singapore for under 183 days) pay a flat 15% or the resident rate, whichever is higher, on Singapore employment income. Director fees are taxed at 24%.
Section 02
What Is and Is Not Taxed in Singapore
Singapore operates a territorial tax system: only income arising in or derived from Singapore is taxable. This has important implications for expats:
Taxable
Singapore employment income (salary, bonuses, benefits-in-kind)
Singapore-sourced investment income (dividends from Singapore companies, Singapore rental income)
Director fees from Singapore companies
Not Taxable
Foreign-sourced income (foreign dividends, foreign rental income) — generally exempt unless received through a partnership in Singapore
Capital gains — Singapore has no capital gains tax at all
Overseas income received in Singapore — generally not taxed (territorial principle)
Inheritance — no estate duty
This makes Singapore especially powerful for expats who maintain investment portfolios or rental properties in other countries — that income is generally not touched by Singapore tax.
Section 03
CPF: Central Provident Fund for Residents vs Foreigners
The Central Provident Fund (CPF) is Singapore's mandatory retirement savings scheme. It has a critical difference between Singaporeans/PRs and foreign Employment Pass holders:
Singaporeans and Permanent Residents
Mandatory CPF contributions: employee contributes 20% (for workers under 55), employer contributes 17%. This totals 37% of salary going into CPF accounts. While these funds are not 'lost' (they can be used for housing, healthcare, and retirement), they significantly affect take-home pay and liquidity.
Foreign Employment Pass Holders
Foreign nationals on Employment Passes (EP), S Passes, or other work passes are NOT required to contribute to CPF. You receive your full gross salary as take-home pay (minus income tax). This is a substantial advantage — at $150,000 SGD salary, the employee CPF saving is approximately $28,350 SGD per year in additional take-home pay vs a Singaporean counterpart.
Permanent Residents
When you obtain Singapore Permanent Residency (PR), CPF contributions become mandatory. This is an important financial consideration when evaluating whether to apply for PR.
Section 04
Employment Pass and Visa Requirements
Foreign professionals working in Singapore need a valid work pass. The main categories:
Employment Pass (EP)
For professionals, managers, and executives
Minimum salary: $5,000 SGD/month (higher for financial services at $5,500 SGD)
Employer applies on behalf of the employee via the Ministry of Manpower (MOM)
The Complementarity Assessment Framework (COMPASS) applies: employers must meet scoring criteria on candidate's qualifications, salary, and diversity of workforce
ONE Pass (Overseas Networks and Expertise)
For top global talent earning $30,000 SGD/month or equivalent
Work pass status determines whether you are a 'tax resident' — presence of 183 days or more in Singapore is the tax residency threshold for most pass holders.
Section 05
Tax Residency in Singapore
Singapore tax residency is determined by days of physical presence:
Tax resident: Present in Singapore for 183 or more days in the calendar year, OR a continuous period spanning two calendar years totalling 183+ days
Non-resident: Present for fewer than 183 days — taxed at flat 15% or resident rates, whichever is higher
Singapore also applies a special tax exemption for short-term employment: if you are in Singapore for 60 days or fewer in a year, employment income for those days is exempt. This is useful for frequent short-term business visitors.
Filing: Singapore residents file an annual income tax return online via myTax Portal by April 15. IRAS pre-fills returns with employment income from employers. Those with only employment income and no other sources may not need to file separately.
Section 06
US Citizens in Singapore
US citizens in Singapore face dual filing obligations. Singapore's low tax rates (particularly for mid-income levels) create a specific US tax challenge: Singapore rates often fall below US marginal rates, limiting the FTC.
Form 1040: Required annually for all US citizens regardless of Singapore residency
FEIE: With Singapore's relatively low effective rates, the FEIE (excluding up to ~$126,500 of earned income) is often more beneficial than the FTC at mid-income levels. At high income levels, FTC may be more efficient.
Foreign-source income: Singapore doesn't tax your foreign income — but the US does. Foreign dividends, foreign rental income, and overseas capital gains are taxable by the US with no Singapore FTC to offset.
FBAR: Required if Singapore accounts exceed $10,000 aggregate
Singapore-US Tax Treaty: No comprehensive income tax treaty exists between Singapore and the US — unlike most developed countries. This increases the importance of FEIE and makes treaty-based planning unavailable.
No Singapore-US tax treaty means FEIE optimisation is critical. Greenback's expat CPAs handle your Form 1040 and determine whether FEIE or FTC is better for your Singapore income level — and flag any foreign passive income gaps.
⚠ Not the cheapest option — best for complex situations and expats who want a dedicated CPA.
Sending Singapore dollars to USD, GBP, or EUR? Wise transfers at the real exchange rate — significantly cheaper than Singapore bank international transfer fees for regular salary remittances.
⚠ For currency exchange only — not a bank account replacement.
What is Singapore's income tax rate for expats in 2026?
Singapore's top income tax rate is 24% on chargeable income above $1,000,000 SGD. The effective rate at $150,000 SGD is approximately 12–14% — significantly lower than most European and North American jurisdictions. There is no capital gains tax, no inheritance tax, and foreign-sourced income is generally not taxable in Singapore.
Q
Do Employment Pass holders contribute to CPF in Singapore?
No. Foreign nationals on Employment Passes (EP), S Passes, and other work passes are not required to contribute to CPF. Only Singaporean citizens and Permanent Residents make mandatory CPF contributions (employee 20%, employer 17%). This means foreign EP holders receive their full gross salary as take-home pay, which is a significant advantage — equivalent to approximately 20% more take-home pay versus a Singaporean employee at the same gross salary.
Q
Does Singapore tax foreign income?
Generally no. Singapore uses a territorial tax system — only income arising in or derived from Singapore is taxable. Foreign dividends, foreign rental income, and overseas capital gains are not taxable in Singapore. This makes Singapore highly advantageous for expats maintaining investment portfolios or property in other countries.
Q
What is the Singapore Employment Pass minimum salary in 2026?
The Employment Pass requires a minimum fixed monthly salary of $5,000 SGD (or $5,500 SGD in financial services). The Ministry of Manpower's COMPASS framework adds a points-based assessment covering qualifications, salary relative to peers, and workforce diversity. Candidates and employers both need to meet the COMPASS criteria for EP approval from September 2023 onwards.
Q
Is there a tax treaty between Singapore and the United States?
No comprehensive income tax treaty exists between Singapore and the United States. This is unusual for two major developed economies. Without a treaty, US expats in Singapore cannot use treaty-based protections available in most other jurisdictions. The FEIE becomes the primary tool for US citizens in Singapore to manage US tax liability on Singapore employment income.
Q
When do I become a Singapore tax resident?
You are a Singapore tax resident if you are present in Singapore for 183 or more days in the calendar year. A special concession treats a continuous period spanning two calendar years as resident if the total exceeds 183 days. Once a tax resident, you are taxed at the progressive resident rates (0–24%). Non-residents pay 15% flat or resident rates, whichever is higher. Short-term visitors (60 days or fewer) can exempt employment income for those days.
Q
Do US citizens in Singapore still file US taxes?
Yes. US citizens file annual US federal returns regardless of Singapore residency. Singapore's relatively low effective rates (12–14% at mid incomes) often mean the FEIE is more beneficial than the FTC for US expats there. Foreign passive income that Singapore doesn't tax is still taxable by the US with no FTC protection. The absence of a Singapore-US tax treaty makes planning more reliant on FEIE and FEIE exclusion limits.
Disclaimer:This guide provides general information about Singapore taxation for expats for educational purposes only. Tax rules change frequently and individual circumstances vary. Always verify current requirements with IRAS or a qualified Singapore tax adviser. This is not tax advice.