Voluntary CPF Top-Ups: How Much Tax Relief Can You Actually Get?

What Are Voluntary CPF Top-Ups?

Beyond mandatory CPF contributions, you can make voluntary cash top-ups to your own CPF Special Account (SA) or Retirement Account (RA), and to your family members' accounts. These top-ups are incentivised by the government through personal income tax relief.

There are two main schemes:

• CPF Retirement Sum Topping-Up Scheme (RSTU) — for SA/RA top-ups
• MediSave top-ups — for your own or family's MediSave Account

Tax Relief for Your Own SA/RA Top-Up

You can claim up to S$8,000 in tax relief per year for cash top-ups to your own Special Account (if below 55) or Retirement Account (if 55 and above).

Example:

If your chargeable income is S$80,000 and you top up S$8,000:

• New chargeable income: S$72,000
• Tax saved: approximately S$800–S$1,200 depending on your bracket

Tax Relief for Topping Up a Family Member's Account

You can claim an additional S$8,000 in tax relief for top-ups made to a family member's CPF SA/RA. Eligible recipients include:

• Spouse
• Siblings
• Parents and grandparents
• Parents-in-law and grandparents-in-law

Combined maximum relief: S$16,000 per year (S$8,000 own + S$8,000 family member).

MediSave Top-Up Relief

You can also claim tax relief for MediSave top-ups. The cap is based on the Basic Healthcare Sum (BHS) — you cannot top up above this limit. The current BHS for 2025 is S$75,500.

Tax relief for MediSave top-ups is combined under the CPF relief cap and subject to the overall S$80,000 personal income tax relief cap.

Is It Worth It?

It makes sense if:

• You are in the 11.5% or higher tax bracket (chargeable income above S$40,000)
• You do not need the cash in the short term — CPF funds cannot be easily withdrawn
• You are building retirement savings and want guaranteed returns (SA earns 4% p.a.)

It may not make sense if:

• You are in a low tax bracket and the savings are minimal
• You need liquidity (CPF withdrawals are restricted until retirement age)
• You have high-interest debt that should be paid off first

The 4% Guarantee

One often-overlooked benefit: money in the CPF Special Account earns a guaranteed 4% per annum. This is significantly higher than most savings accounts and even many fixed deposits. For long-term savers, the tax relief is a bonus on top of superior guaranteed returns.

How to Top Up

1. Log in to the CPF website or use the CPF Mobile app
2. Navigate to "Top Up My CPF / My Family's CPF"
3. Choose the recipient and account type
4. Make payment via PayNow, GIRO, or cheque

Top-ups must be made by 31 December to qualify for that year's tax relief.

Use the Calculator

Not sure if a top-up is worth it for your tax situation? Use our CPF Top-Up Calculator to see exactly how much you'd save. You can also use the Tax Relief Calculator to model the full picture of your chargeable income after all reliefs.