Financial Templates for Singapore

Singapore has one of the lower personal income tax burdens among developed economies. The resident rate scale runs from 0% to a top marginal rate of 24%, which has applied to chargeable income above SGD 1 million since the 2024 year of assessment, and the first SGD 20,000 of chargeable income is untaxed. There is no capital gains tax on individuals and no estate duty, which was abolished in 2008. The tax year follows the calendar year, and taxpayers receive a Notice of Assessment from the Inland Revenue Authority of Singapore (IRAS) after filing.

The Central Provident Fund (CPF) is the cornerstone of financial planning in Singapore. Contributions are split across three accounts: the Ordinary Account for housing, the Special Account for retirement, and MediSave for healthcare. For employees aged 55 and below the combined rate is 37% of wages, made up of a 20% employee share and a 17% employer share, so the gap between gross and net pay is wide. The Ordinary Wage ceiling reached SGD 8,000 a month in January 2026, the last step of a phased increase, and contributions on monthly wages stop above that ceiling.

Rates step down with age. For the 2026 rates the combined figure is 34% for workers above 55 to 60, 25% above 60 to 65, 16.5% above 65 to 70, and 12.5% above 70, so take-home pay shifts over a career. Ordinary Account savings earn 2.5% a year, while Special, MediSave and Retirement Account savings earn 4%, a floor the government has extended through the end of 2026. An extra 1% applies to the first SGD 60,000 of combined balances. Since January 2025 the Special Account has been closed for members aged 55 and above, with those savings moving to the Retirement Account or the Ordinary Account.

Housing in Singapore is distinctive. The majority of residents live in HDB (Housing and Development Board) flats, which are government-built and subsidised. CPF funds can be used for mortgage payments, creating a direct link between retirement savings and housing costs. Private property exists but at considerably higher prices, and buyer's stamp duties add substantial one-off costs. This housing structure shapes how most household balance sheets in Singapore are put together.

The Singapore dollar (SGD) is the currency, and GST has been 9% since January 2024. While income tax is relatively low, Singapore is an expensive city for everyday living. Food, transport and especially car ownership under the Certificate of Entitlement system carry notable costs. Hawker centres provide affordable dining, but overall household expenses in one of Asia's most expensive cities are still worth tracking closely.