How to maximize Singapore tax relief (6 best strategies in 2025)

2.1. What is parent tax relief?

Caring for elderly parents or grandparents comes with financial responsibilities.

Acknowledging that, the Singapore government offers Singapore’s parents relief to help caregivers support the aging parents, grandparents, or in-laws better.

The amount of relief depends on your parents’ age and whether they live with you. If they are 55 or older, you can claim a higher relief amount.

Those caring for parents with permanent disabilities may qualify for handicapped parent relief, which offers even greater tax savings. 

For those supporting multiple family members, the combined relief can be significant

💡 Since Parent Relief falls under the $80,000 personal income tax relief cap, smart tax planning ensures you maximize your savings.

The example below can help you better understand the parent tax relief.

Mr. Tan, a 42-year-old software engineer earning $120,000 annually. He financially supports his 72-year-old father, who has a small pension of $7,500 per year and lives in a separate household.

Since his father’s income does not exceed $8,000, Mr. Tan qualifies for the lower tier of Parent Relief:

• Annual income: $120,000
• Parent relief claimable: $5,500
• New taxable income: $114,500 ($120,000 - $5,500)

By claiming Parent Relief, Mr. Tan lowers his taxable income, reducing his tax liability while receiving financial recognition for supporting his elderly father.

2.2. How to qualify for parent tax reliefs?

Please note that not everyone who supports their parents qualifies for tax relief—there are key conditions set by IRAS.

To qualify for the Year of Assessment (YA) 2025, you must meet all these conditions in 2024:

• You supported your dependents (e.g., parents, in-laws, grandparents, step-parents).
• Your dependant was at least 55 years old OR was physically/mentally disabled.
• Their annual income did not exceed $8,000 (this includes employment, rental, SRS withdrawals, dividends, etc.).
• They lived with you in Singapore, or you spent at least $2,000 supporting them while they lived separately.

The amount you can claim depends on where your parent lives:

If multiple siblings support a parent, the relief can be shared based on agreement and proper documentation.

2.3. What is course fee relief?

Investing in education doesn’t just boost your career—it can also lower your tax bill. Course Fee Relief allows Singapore taxpayers to claim up to $5,500 per Year of Assessment for qualifying education expenses.

How does it work?

If you take a course that’s relevant to your job or improves your employability, you can offset the cost against your taxable income.

This includes professional certifications, diploma programs, and even degree courses from approved institutions.

The Singapore government introduced this relief to encourage continuous learning, recognizing that a highly skilled workforce strengthens the nation’s economy.

Beyond just tuition, this relief also covers examination and registration fees, making it even more beneficial.

To maximize your savings, keep records of your course expenses and ensure they meet IRAS eligibility requirements.

Our example below can help you better understand the course tax relief.

Ms. Ng, a 35-year-old financial analyst earning $80,000 annually. To enhance her career prospects, she enrolled in a financial risk management certification course, which cost $4,200. Since the course is directly related to her profession, she qualifies for Course Fee Relief:

• Annual income: $80,000
• Course fee relief claimable: $4,200
• New taxable income: $75,800 ($80,000 - $4,200)

By claiming Course Fee Relief, Ms. Ng reduces her taxable income, lowering her tax liability while investing in her professional growth.

For professionals looking to upskill while managing their finances wisely, this relief is a win-win, supporting career advancement while offering meaningful tax savings.

2.4. How to qualify for course fee tax reliefs?

Claiming Course Fee Relief can significantly reduce your taxable income, but you must meet IRAS eligibility criteria to qualify.

Here’s what you need to know:

• The course must be relevant to your current job or improve your employability.
• It must be conducted by an approved educational institution, including universities, polytechnics, professional bodies, or recognized training providers.
• The relief covers tuition fees, exam fees, and registration costs—but excludes expenses like accommodation, transport, or course materials.
• Courses taken for hobbies or general interest (e.g., photography, baking) do not qualify.

To successfully claim Course Fee Relief, you must keep comprehensive documentation to support your claim. This includes:

• Receipts for course fees paid
• Course completion certificates or proof of attendance
• Invoices from educational institutions
• Any other relevant paperwork tied to the course

The tax relief cap is $5,500 per Year of Assessment, so strategic planning is key to maximizing benefits.

2.5. What is donation tax relief?

In Singapore, charitable giving comes with one of the most generous tax incentives in the world — a 250% tax deduction for donations made to approved Institutions of a Public Character (IPCs).

This means that for every dollar donated, $2.50 is deducted from your taxable income, lowering your tax bill while supporting worthy causes.

The government has implemented this high deduction rate to encourage private contributions to social causes and community initiatives.

This tax relief applies to both cash donations and gifts-in-kind (such as shares, property, and artifacts) when given to qualifying organizations.

With no cap on donation deductions, this tax incentive is one of the most powerful tools for managing your tax liability, especially for high-income individuals who want to support causes they care about while optimizing their tax strategy.

The tax incentive extends to both individuals and businesses, making it accessible to a broad range of donors.

For instance, Mr. Tan, a business owner who donates $50,000 to a registered IPC, will benefit from a $125,000 tax deduction ($50,000 x 250%) on his taxable income. 

2.6. How to qualify for donation tax relief?

To qualify for the 250% tax deduction on donations in Singapore, you must ensure your contributions go to approved Institutions of a Public Character (IPCs). 

These organizations are vetted by the Singapore government for their charitable work in fields like community development, education, health, arts, heritage, and sports. You can go the the Singapore government website, Charity Portal, to check the IPC status of the organizations.

If you wish to donate, you can choose an IPC-verified organization from the list on the Giving.sg website or from the list of Participating Charities on the Community Development Council (Singapore government website).

Proper documentation, such as official receipts that clearly state the IPC status, is essential for claiming this relief.

Donations to qualifying IPCs are automatically reflected in your tax assessment through an electronic filing system between the IPCs and IRAS, simplifying the process for taxpayers.

However, not all charitable organizations are eligible for this enhanced tax relief.

• Religious organizations without IPC status, 
• Foreign charities lacking a Singapore branch, and

Timing also plays a crucial role in tax planning, as donations are claimed in the Year of Assessment corresponding to the donation year.

 To ensure transparency, IRAS maintains a public registry of all approved IPCs, which allows donors to verify an organization's eligibility before making contributions.

2.7. What is life insurance relief?

Life insurance relief offers Singapore taxpayers an opportunity to reduce their taxable income while securing financial protection for their loved ones.

If you qualify for this relief, you can claim the lower of these two amounts:

$5,000 minus your CPF contribution, or

Up to 7% of the insured value of your life or your partner’s life, or the amount of premiums paid.

To take advantage of this tax relief, you might want to consider a life insurance plan, like Income Insurance’s Complete Life Secure, which offers coverage that can multiply up to 500% of the sum assured until you reach the age of 65, 75, or 80, covering death, terminal illness, and total and permanent disability.

Let’s say you’re a self-employed individual, and you meet the conditions to claim Life Insurance Relief for YA 2025. Here are the details:

• Insurance Premium Paid: You paid $1,500 for your own life insurance policy.
• Insurance Company: The company has an office in Singapore, and you bought the policy after 10 August 1973.
• CPF Contributions for the Previous Year:
  • Employee CPF Contribution: $0 (since you're self-employed)
  • MediSave/Voluntary CPF Contribution: $4,000

Since your total CPF contributions ($4,000) are less than $5,000, you qualify for the Life Insurance Relief.

In this case, you can claim the lower of:

• $5,000 - $4,000 = $1,000 (from CPF contributions), or
• The amount of insurance premiums paid ($1,500).

You can claim $1,000 in tax relief, which will reduce your taxable income for YA 2025.

2.8. How to qualify for life insurance tax reliefs?

To claim Life Insurance Relief for the Year of Assessment (YA) 2025, you need to meet these conditions:

1. You must have paid insurance premiums for your life insurance policy*.
2. The insurance company must have a branch or office in Singapore if you purchased the policy on or after 10 August 1973.
3. Your total CPF contributions for the year before the YA# must be less than $5,000. This includes:

• • Compulsory employee CPF contribution
  • Compulsory MediSave or voluntary CPF contributions if you're self-employed.

2.9. What is CPF cash top-up relief?

In Singapore, retirement savings provide significant tax relief, with the government offering incentives to encourage long-term financial planning.

The CPF system is at the heart of this approach. Mandatory CPF contributions are made from your pre-tax income, offering immediate tax benefits.

In addition to these mandatory contributions, you can make voluntary cash top-ups to your CPF account for extra tax relief. 

If you're a Singaporean or Permanent Resident (PR) and made voluntary cash top-ups to your own Special Account (SA) or Retirement Account (RA) last year under the CPF Retirement Sum Topping-Up Scheme, you can claim tax relief.

2.10. How to qualify for CPF cash top-up relief?

The CPF Cash Top-Up Relief is for Singaporeans and Permanent Residents to save for their retirement, either in their own CPF accounts or in the accounts of family members.

To qualify for the tax relief for the Year of Assessment (YA) 2025, you must meet these conditions:

• Be a Singapore Citizen or Permanent Resident.
• Have made cash top-ups in 2024 under the CPF Retirement Sum Topping-Up Scheme (RSTU).

Let’s say you are a Singaporean citizen who made a $5,000 cash top-up to your CPF Special Account (SA) and another $3,000 top-up to your parents' CPF account in 2024. Here’s how you can benefit:

• Top-up to own account: $5,000
• Top-up to family member’s account: $3,000

For YA 2025, you could claim up to $8,000 for your own account and up to $8,000 for your family member’s account, totalling a maximum of $14,000 in tax relief.

2.11. What is SRS relief?

The Supplementary Retirement Scheme (SRS) is another powerful tool for tax planning. Voluntary contributions to your SRS account are fully tax-deductible. 

Singapore citizens and permanent residents can contribute up to $15,300 annually. This allows you to defer taxes until retirement, when you may be in a lower tax bracket.

For higher-income individuals who are near the personal income tax relief cap, careful planning of contributions across both CPF and SRS can optimize both current tax benefits and long-term financial security. The government’s enhancements to these tax reliefs encourage self-funded retirement planning, providing significant tax advantages for responsible savers.

For example, 

Mr. Lim is a 42-year-old professional in Singapore earning $85,000 per year. Wanting to plan ahead for retirement while optimizing his taxes, he decides to contribute to his SRS account. In 2024, he deposits $13,500 into his SRS account.

Here’s how his tax situation changes:

• Annual income: $85,000
• SRS contribution for the year: $13,500
• Taxable income after SRS Contribution: $71,500 ($85,000 - $13,500)

By making this contribution, Mr. Lim effectively lowers his taxable income, which helps reduce his tax liability. Not only does this result in immediate tax savings, but it also allows him to set aside funds for retirement.

However, keep in mind that SRS tax relief is not granted if the SRS account is suspended by 31 December of the contribution year or if the contribution is withdrawn within the same year.

2.12. How to qualify for SRS relief?

Singapore Citizens, Singapore Permanent Residents (SPRs), and foreigners can open an SRS account if they meet the following conditions:

• At least 18 years old.
• Not an undischarged bankrupt.
• Not suffering from a mental disorder and able to manage their affairs.
• Have not previously opened an SRS account (including accounts that were suspended).
• Have no pending application with another SRS operator.
• Did not have an SRS account in the past, where all the funds were withdrawn due to:
  • Medical grounds, or
  • Reaching the statutory retirement age at the time of the first contribution.

This ensures that individuals who can manage their finances can take full advantage of the SRS for retirement planning.

2.13. What is tax relief for married couples and families?

Singapore provides tax reliefs designed to support parents and encourage family financial planning. These reliefs for families and married couples lower taxable income, helping families maximize tax savings.

Qualifying Child Relief (QCR) – For Both Parents

Parents can claim and share QCR based on an agreed apportionment.

• Maximum QCR per child: $4,000
• Child Relief (Disability) per child: $7,500

Working Mother’s Child Relief (WMCR) – For Mothers Only

Mothers with earned income can claim WMCR, which varies based on the child’s birth year.

Important: QCR + WMCR is capped at $50,000 per child.

Parenthood Tax Rebate (PTR) – One-Time Claim

Parents can offset their tax payable with PTR, which is shared between spouses.

• 1st child: $5,000
• 2nd child: $10,000
• 3rd and subsequent child: $20,000 each

Unused rebates automatically roll forward to future tax years.

Grandparent Caregiver Relief (GCR) – For Working Mums

Mothers can claim GCR if a grandparent or parent provides childcare and:

• The caregiver earns ≤ $8,000 annually.
• No one else is claiming GCR for the same caregiver.

These reliefs help families reduce taxes while supporting childcare and financial security.

Source: IRAS

2.14. How to qualify for tax relief for married couples and families?

To claim these benefits, you must be a Singapore tax resident and meet the qualifying conditions in the year before the Year of Assessment (YA). For example, if your child is born in 2024, child-related reliefs and rebates apply from YA 2025.