If you’re living and working in Singapore, you probably know how quickly taxes can eat into your hard-earned salary. But what many people don’t realise is you can claim up to $5,000 in tax relief and legally reduce your tax bill!
In this easy-to-follow guide, I’ll explain exactly how you can enjoy these savings in 2025, even if you’re a complete beginner. Let’s dive in.
What is Tax Relief in Singapore?
Tax reliefs are deductions that reduce your chargeable income meaning you pay tax on a lower amount. This helps you save hundreds or even thousands of dollars every year.
Singapore’s government offers various types of tax reliefs based on your personal circumstances like having children, taking care of parents, CPF contributions, and more.
Quick Tip: The more tax relief you claim, the less tax you pay. But there is a cap most individuals can claim up to $80,000 in total tax reliefs, with certain popular options offering up to $5,000 per category.
Who is Eligible to Claim Tax Relief?
Almost every Singaporean citizen, Permanent Resident (PR), and tax resident foreigner who earns an income can claim tax relief if you meet the criteria.
You are considered a tax resident if you:
Stayed/worked in Singapore for 183 days or more in the previous year.
Earned employment income or ran a business in Singapore.
Even if you’re new to Singapore, you may qualify!
Best Ways to Claim Up to $5,000 in Tax Relief (2025 Updated)
Here are some of the most beginner-friendly tax relief options where you can claim up to $5,000 or more:
| Type of Relief | Maximum Amount | Who Can Claim | Simple Example |
|---|---|---|---|
| CPF Cash Top-Up Relief | $8,000 ($16,000 with family) | Anyone topping up own or family CPF | Top-up $5,000 to CPF SA/RA & claim full amount |
| Working Mother’s Child Relief (WMCR) | Up to 15%–25% of income per child | Working mothers with Singaporean kids | Claim if you have a child under 16 or in full-time study |
| Parent Relief | $5,500 (staying together) or $9,000 (staying apart) | Anyone supporting parents/grandparents | Claim if you support a parent aged 55+ |
| NSman (Self) Relief | $3,000 (Active NSmen) | Male Singapore citizens who completed NS | Automatically included for eligible men |
| Life Insurance Relief | Up to $5,000 | Anyone paying life insurance premiums | Claim if CPF contributions < $5,000 |
Pro Tip: You can combine multiple reliefs in one year. For example, many people easily claim CPF Relief + Parent Relief + Insurance Relief and cross $5,000 savings!
Step-by-Step: How to Claim Tax Relief in Singapore
Here’s exactly how to do it, even if it’s your first time.
1. Log in to IRAS MyTax Portal
- Visit IRAS MyTax Portal
- Login via Singpass.
2. File Your Tax Return (March–April)
- Click on ‘File Income Tax Return’.
- Declare your annual income.
- Go to the ‘Reliefs’ section.
3. Select Applicable Tax Reliefs
- Tick the boxes for reliefs you’re eligible for.
- Some (like CPF, NSman Relief) are auto-included, others (like Parent Relief, Insurance Relief) must be self-claimed.
4. Provide Supporting Details
- For example, for Parent Relief you may need parent’s NRIC and declaration.
- For CPF top-ups, no documents needed IRAS auto-verifies.
5. Submit and Keep Records
- After submission, IRAS may review your claim.
- Keep receipts or proof (especially for donations or cash top-ups).
Common Mistakes Beginners Should Avoid
Even experienced taxpayers sometimes lose out by making simple mistakes. Watch out for these:
Forgetting to claim eligible reliefs (especially Parent or Insurance).
Assuming reliefs are auto-included many need to be manually claimed.
Missing the tax filing deadline (usually 18 April).
Forgetting to top-up CPF before 31 December late top-ups won’t count for the year.
Pro Tips to Maximise Your Tax Relief in 2025
Start Early – Plan CPF top-ups or eligible expenses before December.
Use IRAS Tax Calculator – See how much you can save before filing.
Check Every Year – Some reliefs, like Parent Relief, must be re-claimed yearly.
Donations Are Tax Deductible Too – Charitable donations to IPCs offer 250% tax deduction.
Combine with Spouse – Some reliefs like CPF top-ups allow claiming for family members too!
Final Thoughts: Reduce Your Taxes the Smart Way
Nobody enjoys paying taxes, but claiming your rightful tax reliefs can make a big difference sometimes reducing your tax bill to almost zero!
As a beginner in Singapore, just following the simple steps above can help you claim $5,000 or more in tax relief in 2025.