Budget 2022: Higher taxes for top earners with chargeable income above S$500,000

THE top marginal personal income tax will be increased with effect from the 2024 year of assessment, Finance Minister Lawrence Wong announced on Friday (Feb 18).

The portion of chargeable income in excess of S$500,000 up to S$1 million will be taxed at 23 per cent, while that in excess of S$1 million will be taxed at 24 per cent.

These represent a 1 percentage point and 2 percentage point increase from the 22 per cent rate being charged today.

The prevailing tax rate of 22 per cent for the portion of chargeable income in excess of S$320,000 up to S$500,000 will stay.

The set of changes to personal income tax is expected to affect the top 1.2 per cent of personal income taxpayers and will raise S$170 million of additional tax revenue per year, Wong said.

They come as there is "room for greater progressivity", so that those who earn more contribute more, Wong added.

Get the latest updates on Budget 2022 here: bt.sg/budget22

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