SRS Contribution Limit 2026 Singapore: Maximise Your Tax Relief
The Supplementary Retirement Scheme (SRS) is a voluntary savings scheme that allows Singapore citizens, permanent residents, and foreigners to save for retirement while enjoying income tax relief. Understanding the 2026 SRS contribution limit helps you plan contributions strategically to reduce your tax bill. This is not financial advice — consult a licensed financial adviser before making retirement planning decisions.
SRS Contribution Limits 2026
| Category | Annual SRS Limit (2026) | Tax Relief Equivalent |
|---|---|---|
| Singapore Citizens & PRs | S$15,300 | Up to S$15,300 off chargeable income |
| Foreigners | S$35,700 | Up to S$35,700 off chargeable income |
Figures as at January 2026. The SRS contribution limit for Singapore citizens and PRs has been S$15,300 since 2016. The overall personal income tax relief cap is S$80,000 per year of assessment.
How SRS Tax Relief Works
Every dollar contributed to your SRS account reduces your chargeable income for that year. For a Singapore resident earning S$120,000 and in the 15% marginal tax bracket, contributing the full S$15,300 saves approximately S$2,295 in income tax (S$15,300 × 15%). Higher-income earners in the 22% or 24% brackets save even more. Contributions must be made by 31 December to qualify for relief in that year’s assessment.
SRS Investment Options
SRS funds can be invested in a wide range of instruments to earn returns above the SRS bank interest rate (currently 0.05% p.a. in 2026). Eligible investments include SGX-listed equities and ETFs (including REIT ETFs), unit trusts, fixed deposits, Singapore Savings Bonds (SSB), T-bills, endowment plans, and annuities. Dividends, interest, and capital gains within SRS are not taxed while funds remain in the account. See our SRS Account Eligible Investments guide for a full list.
SRS Withdrawal Rules and Tax Treatment
Withdrawals from SRS are allowed at any time, but early withdrawal before the statutory retirement age (currently 63 for those who opened SRS accounts before 2022; 65 from 2022 onwards) triggers a 5% penalty on the withdrawn amount, plus full tax on 100% of the amount withdrawn. After reaching the statutory retirement age, only 50% of each withdrawal is taxable. The SRS withdrawal window is 10 years from the first withdrawal — planning withdrawals across multiple years minimises the tax impact through progressive income tax rates.
SRS vs CPF Top-Up: Which Is Better?
Both SRS contributions and CPF Retirement Account top-ups via the RSTU offer tax relief, but they serve different purposes. CPF top-ups earn guaranteed interest (currently 4% on RA balances) and convert to CPF LIFE annuity income at 65. SRS funds give investment flexibility and can be withdrawn as a lump sum. For most Singapore investors, a combination — max CPF top-up first (up to FRS), then SRS contributions for remaining relief headroom — is the optimal strategy. Our SRS Tax Savings Calculator helps model your potential tax savings.
When to Contribute to SRS
Early-year contributions are preferable to year-end lump sums because invested SRS funds earn returns throughout the year. Dollar-cost averaging (monthly contributions of S$1,275 for citizens/PRs) is a practical approach, especially for long-term investments in index ETFs or Singapore REITs. For investors already maximising CPF contributions, SRS is the primary additional tax-advantaged vehicle available — making the S$15,300 annual limit particularly valuable for those in the 18–24% marginal tax brackets.