Every February, Singaporeans tune in to the Budget Statement with one question on their minds: how will this affect my wallet? Budget 2026, delivered by Finance Minister Lawrence Wong, did not disappoint in terms of scope. From adjustments to personal income tax brackets to fresh corporate tax incentives and enhanced CPF support, the measures touch nearly every working adult and business owner on the island.
In this guide, we break down the key tax-related announcements from Budget 2026, explain what they mean in practical terms, and point you to the right calculators so you can see the impact on your own finances.
Personal Income Tax: Revised Brackets for Higher Earners
One of the headline changes in Budget 2026 is the adjustment to personal income tax rates for top earners. Singapore has long maintained a competitive tax regime, with the top marginal rate sitting at 24% for chargeable income above $1,000,000. Starting from Year of Assessment (YA) 2027 — which covers income earned in 2026 — the government has introduced a new tier.
Chargeable income above $1,500,000 will now be taxed at 25%. For the vast majority of workers, this change has no direct impact. But if you are in the upper echelons of income — perhaps in senior management, finance, or running a profitable business — this is worth factoring into your tax planning.
For most salaried employees earning between $40,000 and $320,000, the existing brackets remain unchanged. The first $20,000 of chargeable income is still tax-free, and the effective tax rate for a typical worker earning $80,000 a year remains well below 10%. Use our Singapore salary calculator to see exactly how much income tax you will pay under the current rates.
Corporate Tax: New Incentives for Innovation and Green Investment
Singapore's headline corporate tax rate stays at 17%, which continues to be one of the most competitive in the region. However, Budget 2026 introduces several targeted incentives designed to encourage innovation, digitalisation, and sustainability.
The Enterprise Innovation Scheme (EIS), originally introduced in Budget 2024, has been enhanced. Companies can now claim 400% tax deductions on the first $600,000 spent on qualifying research and development (R&D) activities, up from the previous $400,000 cap. This is a meaningful boost for tech startups and SMEs investing in product development.
There is also a new Green Investment Allowance that lets companies claim accelerated capital allowances on qualifying green equipment and infrastructure. Whether you are installing solar panels at your factory or upgrading to energy-efficient machinery, the tax savings can be substantial.
For small business owners weighing up whether to incorporate, our sole proprietorship vs company calculator can help you compare the tax implications of different business structures. Meanwhile, the company tax calculator gives you a clear picture of your corporate tax liability under the current rules.
CPF Contribution Changes: More Support for Older Workers
Budget 2026 continues the government's push to support older workers through the CPF system. The CPF contribution rates for workers aged 55 to 65 will see a further increase, building on the phased adjustments announced in earlier budgets.
For employees aged 55 to 60, the total CPF contribution rate (employer plus employee) rises to 35.5%, up from 34.5%. For those aged 60 to 65, the total rate increases to 24%, up from 22.5%. These increases are funded primarily through higher employer contributions, meaning workers in these age groups will see a bit more flowing into their CPF accounts each month without a corresponding drop in take-home pay.
The rationale is straightforward: Singaporeans are living longer and need more retirement savings. The government has been gradually raising CPF rates for older workers to close the gap between what people save and what they actually need for a comfortable retirement.
If you are approaching 55 or are already in this age bracket, it is worth checking how these changes affect your monthly cash flow. Our CPF calculator lets you input your age and salary to see exactly how much goes into your Ordinary Account, Special Account, and MediSave Account each month.
GST Vouchers and Household Support
With the GST now at 9%, the government has been providing ongoing support to cushion the impact on lower- and middle-income households. Budget 2026 extends the Assurance Package with additional GST Voucher payouts.
Eligible Singaporeans will receive up to $700 in cash, $250 in MediSave top-ups, and $100 in U-Save rebates for utilities. The exact amounts depend on your assessable income and the annual value of your home. HDB flat residents in one- and two-room flats receive the highest payouts, while those in private property receive reduced or no payouts.
This is on top of the regular GST Voucher scheme, which provides annual cash payouts, MediSave top-ups, and U-Save rebates to eligible citizens. If you are a small business owner, remember that you may need to register for GST if your taxable turnover exceeds $1 million. Our GST calculator can help you work out your GST obligations.
Employer Cost Implications
For business owners and HR managers, Budget 2026 raises some important considerations around total employment cost. The higher CPF contributions for older workers mean that employing staff aged 55 and above becomes slightly more expensive from the employer's perspective.
However, the government has offset this with an extended CPF Transition Offset, which provides a one-year wage offset to help employers adjust. There is also the progressive wage model continuing to push up wages in specific sectors such as cleaning, security, and food services.
If you are hiring or managing a team, it pays to understand the full cost of employment — not just the gross salary. Our employer cost calculator breaks down the total cost including CPF contributions, Skills Development Levy, and other mandatory charges, so you can budget accurately.
Tax Reliefs: What You Can Still Claim
Budget 2026 did not make sweeping changes to the existing suite of personal tax reliefs, but it is worth reminding yourself what is available. Many Singaporeans leave money on the table simply because they do not claim reliefs they are entitled to.
Key reliefs include the Earned Income Relief (up to $8,000 for those aged 55 and below), CPF Relief (capped at the OW ceiling of $6,800 per month), Supplementary Retirement Scheme (SRS) relief (up to $15,300 for Singapore citizens and PRs), and the NSman Relief for those who have completed national service obligations.
If you are a working parent, there is a whole set of additional reliefs — Qualifying Child Relief, Working Mother's Child Relief, Foreign Domestic Worker Levy Relief, and more. We cover these in detail in our separate guide on tax reliefs for working parents.
Our tax reliefs calculator lets you input your personal circumstances and see exactly how much you can reduce your tax bill. It is one of the most underused tools available, and a few minutes spent on it could save you hundreds of dollars.
Stamp Duty Adjustments for Property
Budget 2026 also addressed the property market, though the changes here are more about fine-tuning than wholesale reform. The Additional Buyer's Stamp Duty (ABSD) rates remain unchanged — 20% for Singapore citizens buying a second residential property and 30% for a third. Permanent residents and foreigners continue to face even higher rates.
However, the government has introduced a temporary remission for first-time buyers purchasing resale HDB flats in mature estates, reducing the Buyer's Stamp Duty (BSD) by up to $5,000. This is a modest but welcome relief for young Singaporeans trying to get onto the property ladder in popular areas.
If you are planning a property purchase, our stamp duty calculator gives you a clear breakdown of BSD and ABSD payable based on the purchase price and your buyer profile.
What This All Means for Your Take-Home Pay
For the average salaried worker in Singapore, Budget 2026 is largely positive. Personal income tax rates have not increased for anyone earning below $1,500,000. CPF contributions for older workers are going up, but the extra money flows into your retirement savings. And the continued GST support helps offset the 9% consumption tax.
The most practical thing you can do right now is check your numbers. Use our salary calculator to see your after-tax and after-CPF take-home pay for 2026. If you are expecting a bonus, run it through our bonus tax calculator to see how much of it you actually keep. And if you are comparing job offers, our salary comparison calculator makes it easy to evaluate two packages side by side, including CPF and tax.
Budget 2026 reinforces Singapore's position as a low-tax, high-efficiency economy. But within that framework, there are always opportunities to optimise your finances — if you know where to look.