Bonus Tax Calculator Singapore (2026)
See how your bonus, AWS, or 13th month pay is taxed using IRAS progressive rates.
What is the Bonus Tax Calculator?
The Bonus Tax Calculator shows how your bonus, AWS, or 13th month pay is taxed in Singapore. Bonuses are added to your total annual income and taxed at IRAS progressive rates -- there is no separate flat bonus tax rate. This calculator reveals the effective marginal rate applied to your bonus.
Quick Answer
infoSee the marginal tax impact of your bonus on top of your annual income
Result updates as you type
Additional Tax on Bonus
$1,149.96
Effective rate on bonus: 11.5%
Tax With Bonus
$4,499.89
Tax Without
$3,349.93
Extra Tax
$1,149.96
Marginal Rate
11.5%
Your bonus is taxed at your marginal rate. The additional tax shown is the difference between tax on total income (with bonus) and tax without. Based on YA2026 progressive rates from IRAS.
Disclaimer
This calculator provides tax estimates and should not be viewed as a final assessment. Actual tax payable may vary due to reliefs, deductions, and YA-specific rules not covered here. It is not intended to be your sole source of financial guidance.
Rates last verified: 4 Apr 2026.
Verify with IRAS (https://www.iras.gov.sg). Full disclaimer at smartcalculator.sg/disclaimer.
Quick Reference
- • No separate bonus tax rate -- bonuses taxed at progressive income tax rates
- • Bonus is taxed at your marginal rate (the bracket your combined income reaches)
- • CPF applies to bonuses up to the Additional Wage ceiling ($102,000 minus total OW)
- • AWS, 13th month, and performance bonuses are all fully taxable
- • Annual Wage Ceiling: $102,000 — CPF only applies to bonus up to this total
- • Contractual and non-contractual bonuses are taxed identically for income tax
- • If total wages (OW + bonus) exceed $102,000 AWC, CPF on excess bonus = $0
Who This Calculator Is For
Employees Receiving Annual Bonuses
Bonus (Additional Wages) triggers CPF if total annual wages haven't yet reached the $102,000 Annual Wage Ceiling. CPF is capped at that ceiling.
- AW CPF cap: $102,000 minus total OW already paid
- Employee CPF: applies to bonus up to cap
- Employer CPF: applies to same amount
- Tax bracket: bonus may push you into a higher bracket
Directors Receiving Director Fees
Director fees are not "wages" for CPF purposes. IRAS taxes director fees at 24% for non-residents or at marginal rates for residents.
- Director fees: CPF not applicable
- Non-resident directors: flat 24% withholding tax
- Resident directors: taxed at marginal income tax rates
- Filing: must declare on Form B/B1
Employers Processing Year-End Bonuses
Employer must pay employer CPF on bonus portion within the AW cap. Submit via CPF e-Submit before February deadline.
- Deadline: CPF on AW due by 14 Jan of following year
- IR8A: bonus must be declared as additional wages
- Late payment: 1.5% monthly interest
- Retrenchment benefits: generally not CPF-applicable
How Bonus Tax Works in Singapore
Singapore does not have a separate bonus tax rate. Your bonus is added to your total annual income and taxed under the same progressive tax brackets as your regular employment income.
This means your bonus is effectively taxed at your marginal tax rate — the rate of the highest bracket your combined income reaches. If your bonus pushes you into a higher bracket, only the portion above the threshold is taxed at the higher rate.
CPF contributions also apply to bonuses, subject to the Additional Wage ceiling of $102,000 minus your total Ordinary Wages for the year.
Worked example: An employee earns $8,000/month ($96,000/year) and receives a $20,000 annual bonus. Total income = $116,000. The first $96,000 falls within the lower tax bands; the additional $20,000 is taxed progressively. Using YA2026 brackets: $96,000 → tax of approximately $7,950; $116,000 → tax of approximately $10,900. The marginal tax on the $20,000 bonus is approximately $2,950 (effective rate of 14.75% on the bonus portion). CPF is also payable on the $20,000 bonus: employee 20% = $4,000, employer 17% = $3,400.
CPF contributions apply to bonus income only up to the Annual Wage Ceiling (AWC) of $102,000minus ordinary wages already contributed. If you've already earned $96,000 in ordinary wages, only $6,000 of your $20,000 bonus attracts CPF — the remaining $14,000 is CPF-exempt. This AWC cap means high earners' bonuses are partially or fully CPF-free, though still fully subject to income tax. Note: contractual bonuses (e.g. 13th month) are treated the same as non-contractual bonuses for both CPF and tax purposes.
Bonus Tax Example
Annual Salary
$80,000
Bonus (2 months)
$13,333
Total Assessable Income
$93,333
Marginal Tax Rate on Bonus
11.5%
Because total income falls in the $80,001 - $120,000 bracket.
Ordinary Wages vs Additional Wages: CPF Treatment
CPF applies differently to your monthly salary (Ordinary Wages) versus annual bonus or variable pay (Additional Wages). Understanding the caps prevents over- or under-contributing.
| Type | CPF Cap | Monthly or Annual Calculation | Example |
|---|---|---|---|
| Ordinary Wages (OW) | $8,000/month | Monthly | Salary, allowances paid monthly |
| Additional Wages (AW) | $102,000 - total OW paid | Annual (per calendar year) | Annual bonus, commission, variable pay |
| Above OW ceiling | Not CPF-applicable | — | Salary portion above $8,000/month |
| Above AWC | Not CPF-applicable | — | Bonus above ($102,000 - OW paid) |
The Annual Wage Ceiling ($102,000) is the combined limit for both OW and AW CPF contributions per calendar year per employee.
Frequently Asked Questions
How is bonus taxed in Singapore?expand_more
In Singapore, your bonus (including AWS, 13th month, and performance bonuses) is added to your total annual income and taxed at the applicable progressive rate. There is no separate flat tax on bonuses — the tax depends on the marginal bracket your combined income falls into.
What is the difference between marginal and average tax rate on bonuses?expand_more
The marginal rate is the tax rate on your last dollar of income, which is the rate your bonus effectively gets taxed at if it pushes you into a higher bracket. The average (effective) rate is your total tax divided by total income. Your bonus is taxed at the marginal rate, which is usually higher than your average rate.
Is AWS (Annual Wage Supplement) or 13th month bonus taxable?expand_more
Yes. AWS, 13th month pay, and all contractual and non-contractual bonuses are fully taxable in Singapore. They are treated as employment income and added to your annual assessable income for tax computation under IRAS rules.
Are CPF contributions deducted from bonuses?expand_more
Yes. CPF contributions apply to bonuses, but they are subject to the Additional Wage (AW) ceiling. The AW ceiling for the year is $102,000 minus your total Ordinary Wages for the year. Any bonus amount exceeding this ceiling is not subject to CPF.
Is CPF payable on the full bonus amount?expand_more
Not necessarily. CPF contributions apply to bonus income only up to the Annual Wage Ceiling (AWC) of $102,000 per year, minus ordinary wages already paid CPF on. If your annual ordinary wages are $96,000, only $6,000 of your bonus attracts CPF — the remaining $14,000 is exempt from CPF (both employee and employer contributions). This AWC cap means that for employees earning above $96,000 in ordinary wages, large bonuses are partially CPF-free.
Can I reduce my tax on bonuses through CPF top-ups?expand_more
Yes. Voluntary cash top-ups to your own CPF Special Account (or Retirement Account if aged 55+) under the Retirement Sum Topping-Up Scheme (RSTU) qualify for tax relief of up to $8,000 per year (additional $8,000 relief for topping up a family member's account). Making a CPF top-up in the same year you receive a large bonus effectively reduces your chargeable income, lowering the tax on that bonus. The relief is capped at the $80,000 total personal relief limit.
Sources
- • IRAS (iras.gov.sg) — Treatment of bonuses as employment income and YA2026 progressive brackets
- • CPF Board (cpf.gov.sg) — Additional Wage ceiling and CPF on bonus payments