A professional, blurred high-angle shot of the Singapore Cen

Taxation Framework 2024

Personal Income Tax Reliefs

Systematic reduction of assessable income through statutory reliefs. Understanding the IRAS framework is essential for effective personal tax planning and compliance.

View Relief Cap IRAS Filing Guide

$80,000

Maximum Relief Cap

15+

Available Relief Types

Automatic

Earned Income Grant

Section 01

Earned Income Relief (EIR)

Earned Income Relief is a standard deduction provided to all individuals who receive income from employment, pension, or trade. This relief is automatically granted by the Inland Revenue Authority of Singapore (IRAS) based on the age of the taxpayer. It serves to reduce the taxable base for active earners, acknowledging the costs associated with maintaining professional activity.

For individuals below 55 years of age, the standard EIR is $1,000. This amount increases significantly as taxpayers age, reaching $6,000 for those aged 55 to 59, and $8,000 for those aged 60 and above. These adjustments are designed to support the senior workforce and encourage continued participation in the economy.

Taxpayers do not need to claim this relief manually in the tax portal. If you are also managing a small enterprise, you may want to review Self-Employed Deductions to ensure all trade-related expenses are captured before the EIR is applied.

Close-up of professional tax documents on a clean white desk

Section 02

Spouse Relief and Disability Support

Spouse Relief is available to taxpayers who support a spouse living in the same household. To qualify, the spouse must not have had an annual income exceeding $4,000 in the previous year. This threshold includes all taxable and tax-exempt income, such as dividends and rental income.

The current relief amount is $2,000 for a legally married spouse. If the spouse is physically or mentally disabled, the relief amount increases to $5,500. This provision recognizes the additional financial burden placed on the primary earner when a partner is unable to contribute to the household income due to health constraints.

Standard Spouse Relief: $2,000 deduction.
Handicapped Spouse Relief: $5,500 deduction.

Section 03

Qualifying Child Relief (QCR)

Qualifying Child Relief (QCR) is intended to assist parents with the cost of raising children. Taxpayers can claim $4,000 per child, provided the child is below 16 years of age or studying full-time at an educational institution. The child must not have an annual income exceeding $4,000.

For children with disabilities, the Handicapped Child Relief (HCR) allows for a deduction of $7,500. Unlike QCR, there is no age limit for HCR, provided the child's disability is certified by a medical professional. Parents can choose to split the relief amount between them to optimize their respective tax brackets.

Note: Working mothers may also be eligible for the Working Mother’s Child Relief (WMCR), which is calculated as a percentage of the mother's earned income. This is a powerful tool for reducing tax liability for dual-income households.

Beyond family-related reliefs, you can further lower your tax bill by contributing to society. Check our page on Charitable Donation Deductions to see how a 250% tax deduction works for approved IPC donations.

Critical Limit

The $80,000 Relief Cap

Since the Year of Assessment 2018, the total amount of personal income tax reliefs an individual can claim is capped at $80,000 per year. This cap applies to the aggregate of all relief types, including CPF contributions, life insurance, and course fees.

High-income earners often reach this limit through mandatory CPF contributions and supplementary retirement scheme (SRS) top-ups. It is vital to calculate your total projected reliefs before making voluntary contributions to ensure they remain tax-efficient.

Next Steps

Optimization Strategy

To maximize your tax savings, review your eligibility for less common reliefs such as the Course Fees Relief (up to $5,500) and the Parent Relief (up to $9,000 for dependents living with you).

Return to Guide

Ready to file?

Ensure all your reliefs are correctly declared in the IRAS myTax Portal. Missing a claim can result in significant overpayment of taxes.

Start Filing Guide