SRS Contribution & Tax Savings Calculator

What Is the Supplementary Retirement Scheme (SRS)?

The Supplementary Retirement Scheme (SRS) is a voluntary savings plan run by the Singapore government that lets you reduce your taxable income dollar-for-dollar. Every dollar you contribute to your SRS account is deducted from your chargeable income before Singapore personal income tax is computed. For tax year 2026 the SRS contribution cap is SGD 15,300 for Singapore citizens and Permanent Residents, and SGD 35,700 for foreigners. Contributions earn at least 0.05% interest per annum inside the account and can be invested in stocks, bonds, unit trusts, and other IRAS-approved instruments.

How SRS Tax Savings Are Calculated

Singapore uses a progressive tax rate schedule. Your chargeable income — total income minus eligible reliefs — is taxed in bands. The current rates (2026 Year of Assessment) run from 0% on the first SGD 20,000 up to 24% on income exceeding SGD 1,000,000. Because SRS contributions reduce chargeable income directly, the tax saved equals the tax that would have been charged on the last dollars of your income (the marginal-rate bands your contribution spans). For example, a person earning SGD 120,000 who contributes SGD 15,300 saves approximately SGD 2,448 in income tax — a net benefit well above the 0.05% interest rate on uninvested SRS funds.

SRS Withdrawal Rules and Penalties

You can withdraw your SRS savings penalty-free from the statutory retirement age (63 years old for accounts opened from 1 January 2022 onward). Only 50% of withdrawals are subject to tax — halving the effective rate compared with earning the same income directly. Early withdrawal before the retirement age attracts a 5% penalty on the amount withdrawn, and 100% of the amount is included in your income for that year. Balances left in SRS grow tax-free until withdrawal. At death or permanent incapacitation, the full balance is withdrawn at 50% concession. The SRS account must be drawn down within 10 years of the first withdrawal to continue enjoying the 50% concession.

Who Benefits Most from SRS Contributions?

SRS is most effective for taxpayers in the 11.5% marginal bracket and above (chargeable income above SGD 80,000). At that level, every SGD 1,000 contributed saves at least SGD 115 in taxes. For people at the top 22% bracket (income above SGD 500,000) the saving is SGD 220 per SGD 1,000. Self-employed professionals, freelancers, and high-income employees who have already maximised CPF top-up reliefs typically gain the most. SRS also works well as part of a pre-retirement tax optimisation strategy: accumulate SRS funds now at your peak earning rate, then draw down at 50% concession after 63 when total income is likely lower.

SRS vs CPF Top-Up: Key Differences

Both SRS contributions and CPF cash top-ups reduce your taxable income, but they differ in liquidity and purpose. CPF top-ups to the Special Account or Retirement Account are permanently locked — funds can only be used for retirement income via CPF LIFE. SRS funds remain accessible (with a 5% penalty before retirement age) and can be invested freely. The CPF top-up relief cap is SGD 8,000 for your own account plus SGD 8,000 for family members; SRS relief is uncapped up to the annual SRS limit. For maximum relief, taxpayers often combine both strategies: CPF top-up first (more locked but higher effective benefit for most), then SRS up to the cap.