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Singapore vs Malaysia Tax: What Is the Real Difference in 2026?

Singapore and Malaysia use progressive income tax systems with different rates, bands and currencies, and each has its own mandatory retirement savings scheme. For anyone working in either country, or considering a move, the useful comparison is not just the headline top rate but how the bands apply at your income and how much of each paycheck goes into compulsory savings. This guide uses only official published figures, with the year each applies to.

Singapore Income Tax Rates

Singapore's resident rates are published on the IRAS individual income tax rates page, which applies the table below from YA 2024 onwards. The top rate is 24% on chargeable income above $1,000,000.

Malaysia Income Tax Rates

Malaysia's rates are published by the Inland Revenue Board of Malaysia (LHDN). Its tax rate page shows the following bands for Years of Assessment 2023, 2024 and 2025. The top rate is 30% on chargeable income above RM2,000,000.

Check LHDN for the table that applies to later years of assessment before you file.

How the Two Tables Compare in Practice

Because the two tables use different currencies, the cleanest comparison is to look at how each system treats a sample chargeable income in its own currency. Using the official tables above, and remembering that these are amounts of tax on chargeable income after reliefs, not on gross salary:

• Singapore, $80,000 chargeable income: $3,350 of tax, an effective rate of about 4.2%.
• Singapore, $120,000 chargeable income: $7,950 of tax, about 6.6%.
• Malaysia, RM100,000 chargeable income: RM9,400 of tax, an effective rate of 9.4%.
• Malaysia, RM150,000 chargeable income: RM21,900 of tax, about 14.6%.

To compare a real job offer across the border, convert the salary using a current official exchange rate, apply each country's own reliefs, and then run each figure through its own table. Our Malaysia Income Tax Calculator and Singapore Income Tax Calculator can help with each side. The structural differences are clear even without conversion: Singapore's bands climb more gently and top out at 24%, while Malaysia's top band reaches 30%.

CPF vs EPF: Mandatory Savings

Both countries require contributions to a national retirement fund, but the rules differ. For Singapore, the CPF Board contribution rate table from 1 January 2026 sets these rates for Singapore Citizens and Permanent Residents from their third year, on monthly wages above $750:

CPF applies to ordinary wages up to a monthly ceiling, which the CPF Board's Ordinary Wage ceiling page shows is $8,000 from 1 January 2026, after rising in steps from $6,000.

From 1 January 2027

The table above applies until 31 December 2026. CPF rates rise for employees aged above 55 to 65 from 1 January 2027:

Rates for ages 55 and below, ages above 65, and first and second year PRs on graduated rates do not change. Sources: CPF Board rate table from 1 January 2027 and CPF FAQ on the 2027 senior worker changes.

Malaysia's Employees Provident Fund (EPF, or KWSP) sets its own statutory contribution rates and account structure. The KWSP Third Schedule of the EPF Act 1991 sets these rates:

Up to RM20,000 a month the schedule lists ringgit amounts by wage bracket, and these percentages are what those amounts work out to. Above RM20,000 the percentages apply directly. Our saved copy of the schedule has no date on it, so check the current version on kwsp.gov.my before comparing take-home pay.

GST vs SST

Singapore charges Goods and Services Tax. IRAS states that the current GST rate in Singapore is 9%, charged by GST-registered businesses on sales of goods and services in Singapore unless the sale can be zero-rated or exempted.

Malaysia uses a Sales and Service Tax (SST) instead of a GST. The rates are set by separate sales tax and service tax rate orders, which the Royal Malaysian Customs Department lists on its MySST portal, including amendment orders published in 2026. Because the rates differ by type of goods and service and have changed recently, check the current orders there rather than relying on a single figure.

Capital Gains and Overseas Income

Two other differences often matter to people moving between the countries. In Singapore, IRAS states that gains from the sale of property, shares and financial instruments are generally not taxable, although gains from trading in properties may be taxable. If you buy and sell property frequently, keep records of why you bought and sold, since that affects how the gains are treated. See IRAS guidance on gains from sales.

IRAS also states that, generally, overseas income received in Singapore is not taxable for individuals, with exceptions such as income received through Singapore-based partnerships. See IRAS guidance on overseas income.

Malaysia has its own rules on capital gains and foreign-sourced income, which LHDN publishes in separate guidelines. If you hold investments or earn income in both countries, the safest approach is to check each tax authority's current guidance, or ask a professional who works across both systems before you sell an investment or move money between the two countries.

Reliefs and Rebates in Singapore

Headline rates only tell part of the story, because reliefs reduce the income that is taxed. In Singapore, IRAS sets Earned Income Relief at up to $1,000 below age 55, $6,000 at 55 to 59, and $8,000 at 60 and above, based on your age as of 31 December of the previous year. Other reliefs, such as CPF relief and family-related reliefs, have their own conditions.

All reliefs together are subject to a personal income tax relief cap of $80,000 for each Year of Assessment, according to the IRAS tax reliefs page. IRAS has also granted one-off rebates to tax residents: 50% of tax payable, up to $200, for YA 2024, and 60% of tax payable, up to $200, for YA 2025.

Malaysia has its own list of personal reliefs, published by LHDN, with different categories and limits. Because the two lists differ so much, compare your likely reliefs in each country, not just the tax tables, before deciding which system leaves you better off.

How Singapore Taxes Non-Residents

If you are moving to Singapore for a short period, you may be taxed as a non-resident rather than a resident. Under the IRAS rules, a non-resident's employment income is taxed at a flat 15% or at the progressive resident rates, whichever gives the higher tax amount, and non-residents cannot claim reliefs.

Most other income of non-residents, including director's fees and rental income, is taxed at 24% from YA 2024, up from 22% before. Non-resident professionals such as consultants and trainers are taxed at 15% of gross income or 24% of net income.

IRAS also exempts the short-term employment income of non-residents who exercise employment in Singapore for 60 days or less in a year, except for board directors, public entertainers and professionals. If you are commuting from Malaysia or working in Singapore on short assignments, these rules can matter more than the resident tax table. See our guide to Singapore income tax for foreigners for the residency tests.

Calculate Your Own Figures

Use our calculators to run the numbers for your own situation:

• Singapore Take-Home Pay Calculator
• Malaysia Income Tax Calculator
• Singapore CPF Calculator

Frequently Asked Questions

Sources

• IRAS, Individual Income Tax rates (YA 2024 onwards)
• LHDN, Tax rate (YA 2023 to 2025)
• CPF Board, Contribution rates from 1 January 2026
• CPF Board, Contribution rates from 1 January 2027
• CPF Board, FAQ on the 2027 senior worker changes
• CPF Board, Ordinary Wage ceiling
• KWSP, Third Schedule of the EPF Act 1991 (saved copy, no date)
• IRAS, Current GST rate
• Royal Malaysian Customs Department, MySST
• IRAS, Gains from sale of property, shares and financial instruments
• IRAS, Income received from overseas