3 Legal Ways to Lower Your Taxes in Singapore Before Year End

The year is almost over, and this is the last window before 31 December to reduce your personal income tax for YA2026. Once the clock ticks past midnight, whatever you didn’t do is gone.

Honestly speaking, most Singaporeans only think about tax when the IRAS notice arrives. By then, too late already. The good news? If you still have cash on hand, there are three proven, IRAS-approved ways to lower your tax bill while strengthening your retirement savings at the same time.

Singapore tax relief 2026 Overview

Method	Max Tax Relief	Who It’s Best For	Key Catch
CPF Cash Top-Ups (RSTU)	Up to S$16,000	Those with stable income & long-term horizon	Cash locked in till retirement
MediSave Voluntary Top-Ups	Shared S$8,000 cap	High-income earners nearing BHS	No relief beyond BHS
SRS Contributions	Up to S$15,300	Those comfortable investing	Early withdrawal penalty

1) CPF Cash Top-Up Relief (RSTU Scheme)

If you want the most straightforward tax relief, CPF cash top-ups under the Retirement Sum Topping-Up (RSTU) scheme are hard to beat.

If you’re below 55, your cash top-up goes into your Special Account (SA). If you’re 55 and above, it goes into your Retirement Account (RA).

You can claim:

• Up to S$8,000 tax relief for topping up your own CPF
• Another S$8,000 for topping up eligible family members

That’s a combined S$16,000 deduction from your taxable income, subject to the overall S$80,000 personal relief cap.

Important things many people miss:

• Only cash top-ups qualify — CPF OA transfers don’t count
• If you’ve already hit the Full Retirement Sum (FRS), no relief applies

For reference, the FRS for 2025 is S$213,000, rising to S$220,400 in 2026.

Topping Up Family Members? Watch This Rule Change

From YA2026 onwards, CPF cash top-ups that qualify for the Matched Retirement Savings Scheme (MRSS) will no longer give you tax relief.

Example:

• Top up S$2,000 and it fully qualifies for MRSS → no tax relief
• Top up S$3,000 → only S$1,000 gives tax relief

This matters a lot if you’re planning year-end top-ups for parents.

2) MediSave Voluntary Cash Top-Ups

You can also top up your MediSave Account (MA) to reduce taxes, but this is where people get confused.

MediSave top-ups:

• Share the same S$8,000 tax relief cap as RSTU
• Do not come with a separate limit

So if you’ve already used S$8,000 on CPF SA or RA top-ups, your MediSave contribution won’t reduce tax further.

For 2025, the Basic Healthcare Sum (BHS) is S$75,500. Any amount that pushes your MA above this:

• Gets no tax relief
• Will not be refunded

No need to overthink — just track your numbers carefully before topping up.

3) Supplementary Retirement Scheme (SRS)

SRS is the most flexible option, especially if you’re comfortable investing.

Contribution limits for 2025:

• S$15,300 (Singaporeans & PRs)
• S$35,700 (Foreigners)

Why people like SRS:

• Contributions reduce taxable income
• Investment gains are tax-free
• Only 50% of withdrawals are taxable at retirement
• Withdrawals spread over 10 years

But don’t ignore the downsides:

• Cash earns only 0.05% p.a.
• Early withdrawal = 5% penalty + full tax

For most Singaporeans, SRS works best only if you invest the funds, not let them sit idle.

How to Make CPF or MediSave Top-Ups (Fast)

All can be done online, no queues.

CPF SA / RA Top-Ups

• myCPF mobile app (fastest)
• CPF online cash top-up form (PayNow QR)
• GIRO for recurring contributions

MediSave Top-Ups

• CPF “Top Up MediSave Account” online form
• PayNow QR supported
• Self-employed persons must clear MediSave payable first

CPF vs SRS — Which Should You Choose?

Ask yourself two simple questions:

1. When do I need this money?
2. Am I willing to invest it?

CPF top-ups give up to 6% p.a. risk-free, but money is locked till retirement.

SRS gives flexibility, but only works if you invest properly and can leave the money untouched.

For many, the sweet spot is a combination of both, depending on cash flow and age.

Key Deadline to Remember

All qualifying CPF, MediSave, and SRS contributions must be completed by 31 December 2025 to enjoy tax relief in 2026.

Miss it, and you wait another year.

Frequently Asked Questions

1) Can I max out CPF and SRS in the same year?

Yes, as long as you stay within each scheme’s limits and the overall S$80,000 tax relief cap.

2) Is CPF or SRS better for high-income earners?

CPF is safer with guaranteed returns, while SRS offers higher upside if you invest well. Most high earners use both.

3) What happens if I withdraw SRS early?

You’ll pay full tax on the amount withdrawn plus a 5% penalty. Best avoided unless really necessary.