SRS Tax Relief Singapore 2026: Maximise Your Tax Savings
For informational purposes only. Not financial advice. Consult a tax professional for personalised advice.
SRS tax relief in Singapore allows contributors to deduct their annual SRS contribution from taxable income — up to S$15,300 for Singapore Citizens and PRs, and S$35,700 for foreigners, for the 2026 assessment year. Tax savings depend on your personal income tax rate.
What is the SRS and How Does Tax Relief Work?
The Supplementary Retirement Scheme (SRS) is a voluntary savings scheme administered by MAS that lets Singapore workers save for retirement while reducing current income tax. Contributions are deducted from your taxable income in the year they are made, providing immediate tax savings based on your marginal tax rate.
Upon retirement, SRS withdrawals are partially taxable: only 50% of SRS withdrawals are subject to income tax (if you withdraw at or after the statutory retirement age, currently 63 as at 2026). This means SRS savings are effectively taxed at half your marginal rate on withdrawal — a significant long-term tax benefit.
SRS Contribution Limits 2026
Singapore Citizens and PRs: Maximum annual contribution of S$15,300 per year. Foreigners: Maximum annual contribution of S$35,700 per year. You can contribute any amount up to the cap at any time during the calendar year — contributions must be made by 31 December to claim relief for that year.
Calculating Your SRS Tax Savings
Tax savings = SRS contribution × your marginal income tax rate. For a Singapore Citizen earning S$120,000 annually (marginal rate ~11.5%), a S$15,300 SRS contribution saves approximately S$1,760 in taxes per year. Over 20 years of contributing, cumulative tax savings could exceed S$35,000 before accounting for investment returns on the SRS balance.
What Can You Invest in via SRS?
SRS funds can be invested in a wide range of MAS-approved instruments: SGX-listed shares, REITs, ETFs, unit trusts, Singapore Government Securities, corporate bonds, and fixed deposits (at SRS-approved banks). Investing SRS funds — rather than leaving them in cash — is essential to maximise long-term returns. Uninvested SRS cash earns only 0.05% p.a.
Related: SRS Account, CPF RA, Retirement Calculator, Glossary.
Frequently Asked Questions
What is SRS tax relief in Singapore 2026?
SRS tax relief in Singapore allows contributors to deduct their annual SRS contribution from taxable income — up to S$15,300 for Singapore Citizens and PRs, and S$35,700 for foreigners, for the 2026 assessment year. Tax savings depend on your personal income tax rate.
How much can I contribute to SRS in 2026?
Singapore Citizens and PRs can contribute up to S$15,300 per year to SRS. Foreigners can contribute up to S$35,700 per year. Contributions must be made by 31 December to qualify for income tax relief in that year of assessment.
How do I calculate my SRS tax savings?
Multiply your SRS contribution by your marginal income tax rate. For example: S$15,300 contribution × 11.5% marginal rate = S$1,759 in annual tax savings. Higher-income earners benefit more — those at the 22% marginal rate save S$3,366 annually from a full S$15,300 SRS contribution.
When are SRS withdrawals taxed?
Upon withdrawal at or after the statutory retirement age (currently 63 as at 2026), only 50% of your SRS withdrawal is subject to income tax. Withdrawals before retirement age are 100% taxable plus a 5% penalty. The 50% concession makes SRS highly tax-efficient for retirement drawdown.
Should I invest my SRS funds or leave them in cash?
You should invest your SRS funds. Uninvested SRS cash earns only 0.05% per annum at SRS banks — far below inflation. The power of SRS is the combination of upfront tax relief AND long-term investment returns. Good SRS investment options include S-REIT ETFs, dividend ETFs, SSBs, and unit trusts via platforms like Endowus.