Resident vs. Non-Resident Tax Rates in Singapore: What You Need to Know

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In Singapore, whether you are a tax resident or non-resident can significantly change how your income is taxed.

Tax residents generally enjoy progressive tax rates and personal reliefs, while non-residents face different rates depending on whether the income is employment income, director’s fees, rental income or professional fees.

Why tax residence matters

Singapore taxes individuals on income earned in or derived from Singapore. Your tax-residency status determines the applicable tax rates, whether you can claim personal reliefs and how your employment income is calculated.

Tax residence is assessed separately for each Year of Assessment (YA). Singapore uses a preceding-year basis: income earned from 1 January to 31 December 2025 is assessed in YA 2026.

Who is a Singapore tax resident?

You are generally a tax resident for a YA if you are:

• A Singapore Citizen or Singapore Permanent Resident who resides in Singapore, apart from temporary absences.
• A foreigner who stayed or worked in Singapore for at least 183 days in the previous calendar year.
• A foreigner who stayed or worked in Singapore continuously for three consecutive years, even if the stay in the first or third year was under 183 days.
• A foreign employee whose employment straddles two calendar years and whose continuous stay, including physical presence immediately before and after employment, totals at least 183 days. This concession excludes company directors, public entertainers and professionals.

The 183-day rule is central. Someone employed in Singapore for 61 to 182 days in a calendar year is generally a non-resident, while someone employed for 183 days or more is generally treated as a tax resident, subject to the applicable residence tests and concessions.

Tax rates for residents

Singapore tax residents pay tax on chargeable income—income after applicable deductions, donations and personal reliefs—at progressive rates.

The top personal income-tax rate is 24%, applying only to the portion of chargeable income above S$1 million.

These are marginal rates, not a single rate applied to your entire income. Each portion of chargeable income is taxed in its own band.

Tax residents may also qualify for personal reliefs, which reduce chargeable income and therefore the tax payable.

Tax rates for non-residents

Non-residents are not entitled to personal reliefs. Their tax treatment depends on the type of Singapore income. Qualifying expense deductions and donations may still be relevant under the applicable rules.

The 60-day exemption has limits

Non-residents who exercise employment in Singapore for 60 days or less in a calendar year are generally exempt from tax on those employment earnings.

This exemption does not apply to company directors, public entertainers or professionals. It also does not apply where the individual is treated as resident under the three-consecutive-year concession.

Example: Employment income

A non-resident earning S$50,000

Suppose a foreign employee earns S$50,000 in taxable Singapore employment income in 2025 and is a non-resident for YA 2026. Assume there are no allowable employment expenses, donations or applicable treaty exemptions.

The resident-rate calculation is S$200 on the S$20,000–S$30,000 band, S$350 on the S$30,000–S$40,000 band, and S$700 on the next S$10,000. The first S$20,000 is taxed at 0%.

Separately, IRAS’s published non-resident example uses a salary of S$21,000, resulting in S$3,150 of tax at 15%. That is a different salary example, not the tax on S$50,000.

A resident earning S$50,000

For a resident, personal reliefs may reduce chargeable income before the progressive rates apply.

IRAS’s resident example for YA 2026 starts with S$50,000 of employment income, deducts S$250 in donations and S$15,000 in specified personal reliefs, and arrives at S$34,750 in chargeable income.

The tax on that chargeable income is S$366.25 before rebates. In that particular example, an eligible Parenthood Tax Rebate offsets the tax to zero. The reliefs and rebate are specific to the example, not entitlements for every resident.

This shows why the same gross salary can produce very different tax outcomes depending on residency status and eligible reliefs.

Common misunderstandings

• Tax residence is not the same as citizenship. A foreigner can become a Singapore tax resident after meeting the residence tests, while a citizen who lives abroad may still have Singapore tax obligations on Singapore-source income.
• The 15% rate is not automatically lower. Non-resident employment income is taxed at 15% or resident rates, whichever produces the higher tax amount.
• Short stays are not always tax-free. The 60-day exemption applies only to qualifying short-term employment and excludes certain groups.
• Director’s fees are treated differently. They are generally taxed at 24% for non-residents, not at the 15% employment-income rate.

What you should do

1. Determine your residency status for the relevant YA using IRAS’s residence rules.
2. Track your days in Singapore, especially if you arrive, leave or work across year-end.
3. Identify your income type. Check whether it is employment income, director’s fees, professional fees or another income category.
4. Check whether a tax treaty affects your situation if you may be taxed by Singapore and another country.
5. File the correct return. Residents generally file Form B or B1, while non-residents may file Form M. Follow the return and instructions issued by IRAS.

Key takeaway