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On this page
  • Introduction
  • Updates in v1.1
  • User Guide
  • Step 0: Profile
  • Step 1: Income
  • Step 2 and 3: Dependents
  • Step 4: Voluntary Contributions
  • Step 5: Other Reliefs
  • Summary
  • Optimize your taxes based on available reliefs
  1. Features

Income Tax Optimizer

Released in v0.1, Updated in v1.1 -> Accessible by Singapore Users only

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Last updated 2 months ago

Introduction

Description: Calculate your income tax and discover ways to maximize your tax relief

Use Case: Calculate your income tax and find out how to reduce it

Page: /tax/optimizer

Updates in v1.1

After receiving some user feedback (greatly appreciated), we realized that the first version of the tax optimizer was very "robotic" and akin to the one that IRAS already makes available for all to use. As such, we've decided to "humanize" it by adding a human touch to the overall experience. By introducing guided questions, we can help eliminate at least 50% of the fields that may not be relevant to you with a simple handful of yes-and-no questions.

User Guide

Step 0: Profile

Step 1: Income

If any of the fields are relevant to you, then fill in the textboxes that appear

Step 2 and 3: Dependents

If you do, you will be brought to step 3, allowing you to key in the amount for the relevant reliefs based on the dependents you have checked. If you have no dependents, step 3 will be skipped

Step 4: Voluntary Contributions

Step 5: Other Reliefs

Summary

You will be shown a summary of your income profile and a list of your reliefs. At the bottom, you can find the final chargeable income and the tax payable.

You can also find the tax table by clicking the View Tax Table button

Optimize your taxes based on available reliefs

Upon selecting the tax relief items you want, you can see the new total personal reliefs you are qualified for, the new tax payable as well as the tax savings (including the percentage reduced).

Notes:

  • All links are clickable and will bring you to the IRAS page to get more clarification on the item

  • Currently, there is no limit on taxable donation relief

When does it make sense to maximize your tax reliefs?

Assuming Full SRS Relief → $15.3k

Calculation Explanation:

  • Calculate the capital (tax paid + invested amount) accumulated annually

  • Calculate investment return (invested amount compounded by x %)

  • Calculate net profits based on the investment portfolio minus the capital invested

Legend:

  • Normal rows → Base case = Middle of each income tax bracket

  • Green rows → Test cases = Random income levels to test if there is a difference

  • Yellow row → Where SRS Tax Relief makes more sense

TLDR: If your income is more than $220k, you should be maxing out your SRS reliefs