Hi i am currently drawing $3546 a month with a 3.5 month bonus. Should I top up $7k to my SA to minimise my tax payable?

Hi anon,

Hariz has pretty much done the maths. Will just want to give one more input: You might want to just top up exactly $2970.4 via RSTU to bring yourself out of the 7% tax bracket. 3.5% is quite ok for most people. It's only when the tax bracket goes to 7% and 11.5% that it stings.

I'll assume you only have the earned income relief and the employee CPF contribution relief.

So you have annual income of 54963. Minus 1000 for earned income relief and 10992.60 for CPF contribution relief, you'll end up with an chargeable income of 42970.40.

This will atttract a tax of 550 for your first 40k and then an additional 208 for the rest. Totalling 758. Then there's the personal income tax rebate of 50% up to 200. So that's 558.

If you reduce your chargeable income by another 7k by topping up your SA, you'll reduce your tax to 409. And then from the personal income tax rebate that's another 200 reduction. Ending up with 209. Saving you 349 in tax.

Refer to https://www.iras.gov.sg/irashome/Individuals/Lo... & https://www.iras.gov.sg/irashome/Individuals/Lo...​​​