Income tax calculator

[Update: the 2009 version of this post is here: Income Tax Calculator 2009.]

[Update: the 2008 version of this post is here: Income Tax Calculator 2008.]

We have all filed our tax returns. But we're not sure how much tax we'll be paying.

Here's an income tax calculator for this year (YA2007). Just enter your chargeable income (assessable income minus all applicable reliefs):



The above calculator is based on information from Inland Revenue Authority of Singapore (IRAS).

Even though the maximum individual tax rate is 20%, most of us will be charged at a (much) lower rate due to the progressive tax structure. For example, if your chargeable income is $100k, your tax rate is only 7.1%. The graph below shows effective tax rate against chargeable income:



http://www.salary.sg/2007/income-tax-calculator/

Wow, the steepest raise if from $20,000 to 85,000. i.e. majority of the workforce.

From $350,000 to $500,000, only addition of 2% for a $150,000 increment.

This is truely taxing the poor to feed the rich.

What is chargeable income?

Take into example someone earning 2.5k per mth (before CPF). Which of these are chargeable?

a. 2,500 x 12?
b. [(2,500 + employer CPF contributions) x 12] + bonus
c. [(80% of 2,500 + employer CPF contribtution) x 12] + bonus
d. other combinations

Thanks!

IRAS provides an Excel template to calculate the tax

Note: Chargable income is net income after employee CPF contribution

http://www.iras.gov.sg/ESVPortal/resources/workingsheet_ya2007.zip

To Kelvin, trying to understand your logic: just because the rate of increase diminishes as you move up the scale, it means that the poor are being taxed to feed the rich?

One of them earning $500K contributes more tax then 10 of us earning $100k.

Based on the chart, the former pays about $80k (@16%), while each of the "poorer ones" only pays $7k (@7%). Yet, the salary of the former is even near 10x that of the "poorer ones".

How's my maths?

Correction: I meant "not even 10x that of the ....".

I think the point Kevin is trying to make is that the middle class gets squeezed a lot more for trying to climb the ladder but those closer to the top get taxed a lot less trying to move up. So unless you start off nearer to the top, you'll feel the squeeze quite a bit.

n00b, it should be 2,500 x 12 + bonus, then minus whatever reliefs you're entitled to (e.g. earned income, wife, children, provident fund). Generally, your CPF contributions can be deducted (as a "provident fund" relief). See http://www.iras.gov.sg/ESVPortal/iit/iit-se-a1.1.6.7+provident+fund+life+insurance+relief.asp

HI
I need to check my tax applicable after an income of $250k a year after bonus.

Hi Sam, based on my calculator,
Your gross tax payable is $30,800.00
(effective tax rate is 12.32%)