Glossary
Plain definitions of Singapore CPF, income tax and retirement terms — every figure sourced from IRAS, CPF Board, MoneySense, HDB, MAS and SingStat, as at 2026.
FEATURED TERM
CPFCPF Ordinary Account (OA)
The CPF account that can be used for housing, insurance, approved investments and education. OA savings earn a floor interest rate of 2.5% p.a.
2.5% p.a.
OA floor rate (as at 2026) · CPF Board
Read the full guide →All terms
Short definitions, A–Z. Every figure is sourced from an official government authority and stated as at 2026 / YA 2026.
A
Additional Buyer's Stamp Duty (ABSD)
An extra stamp duty on residential property purchases, charged on top of Buyer’s Stamp Duty. The rate depends on the buyer’s residency status and how many residential properties the buyer already owns.
SC — second property
20%
Additional Wage (AW)
Wages that are not classified as Ordinary Wages for the month — an annual bonus is the standard example. CPF contributions apply on AW up to SGD 102,000 less the Ordinary Wages already subject to CPF that year.
Annual salary ceiling
SGD 102,000
Amortisation
The gradual repayment of a loan through regular instalments, each made up of an interest portion and a principal portion. As the balance falls, the interest share of each instalment shrinks and the principal share grows.
Interest basis
monthly rest
Annual Value (AV)
The estimated gross annual rent a property could fetch if it were rented out, excluding furniture, furnishings and maintenance fees. It is the base on which property tax is charged.
Land and development sites
5% of freehold market value
Annualised return
The rate of return an investment has earned per year, expressed as a compound annual rate. It restates a total gain made over several years as a single yearly percentage.
Expressed as
% per annum
Assessable income
Total income after deducting allowable expenses and approved donations. Personal reliefs are then deducted from assessable income to arrive at chargeable income.
Less personal reliefs
Chargeable income
B
Board rate
A floating home loan reference rate set internally by the lender rather than derived from a published market benchmark. The bank can revise it, giving borrowers advance notice.
Set by
The lender
Build-To-Order (BTO)
HDB's main way of selling new flats: buyers ballot for a unit in a launched project and wait for it to be built. Projects launched from October 2024 are classified Standard, Plus or Prime.
MOP — Standard flats
5 years
Buyer's Stamp Duty (BSD)
The stamp duty payable by every buyer acquiring property in Singapore, charged on the higher of the purchase price or the market value. Residential rates run from 1% to 6%.
Top rate (residential)
6%
C
Car loan
A secured term loan used to buy a motor vehicle, with the vehicle pledged as collateral. MAS caps how much can be borrowed and for how long, based on the vehicle Open Market Value.
Max LTV (OMV ≤ SGD 20,000)
70%
Cash Over Valuation (COV)
The amount by which an agreed HDB resale price exceeds the flat’s assessed value. Because CPF usage and the housing loan are based on the value, the difference is met in cash.
Payable in
Cash
Central Provident Fund (CPF)
Singapore's compulsory savings scheme for retirement, housing and healthcare, funded by monthly employee and employer contributions and administered by the CPF Board.
Total contribution (≤55)
37%
Chargeable income
The portion of income on which tax is calculated: assessable income minus approved personal reliefs. Resident rates apply to this amount, not gross income.
Tax-free band (YA 2026)
First SGD 20,000
Compound interest
Interest earned on top of interest already earned. Each period's interest is added to the principal, so the base that earns interest keeps growing.
Rule of 72 at 4% p.a.
About 18 years
Compounded SORA
Daily SORA compounded over a set period — one, three or six months — and published by MAS alongside the daily rate. It is the reference rate most SGD floating-rate home loans are priced on.
Tenors published
1, 3 and 6 months
Consumer Price Index (CPI)
The index that measures average price changes for a fixed basket of goods and services bought by resident households in Singapore. It is compiled monthly by SingStat with 2024 as the base year.
CPI index (Jun 2026)
102.9
Core inflation
MAS Core Inflation is CPI inflation excluding accommodation and private transport. It is the measure MAS uses to track underlying, demand-driven price pressures for monetary policy.
MAS Core (Jun 2026)
1.6% y-o-y
Cost of living
What a household spends to maintain its standard of living, and how that spending changes as prices move. SingStat measures it through the Household Expenditure Survey and tracks price changes through the CPI.
Household spend (2023)
SGD 5,931/month
CPF accrued interest
The interest CPF savings used for a property would have earned, refunded to CPF on sale. Calculated at the OA floor rate of 2.5% p.a., compounded yearly.
Accrued interest rate
2.5% p.a.
CPF Annual Limit
The cap on the total mandatory and voluntary CPF contributions that can be made to a member's CPF accounts in a calendar year. It is SGD 37,740, or 37% of the SGD 102,000 annual salary ceiling.
CPF Annual Limit
SGD 37,740
CPF Basic Retirement Sum (BRS)
The lower CPF retirement sum tier set aside at age 55 for basic retirement payouts. SGD 110,200 for members turning 55 in 2026.
Basic Retirement Sum (2026)
SGD 110,200
CPF contribution rate
The share of wages paid into CPF each month by employee and employer, set by age. For employees aged 55 and below it is 37% (17% employer, 20% employee).
Total rate (≤55)
37%
CPF Enhanced Retirement Sum (ERS)
The highest CPF retirement sum a member can set aside for larger CPF LIFE payouts. SGD 440,800 in 2026 — four times the Basic Retirement Sum.
Enhanced Retirement Sum (2026)
SGD 440,800
CPF extra interest
Additional interest paid on the first tranche of a member's combined CPF balances, on top of the base account rates. Members below 55 earn an extra 1% p.a. on the first SGD 60,000.
Extra interest (below 55)
+1% p.a.
CPF Full Retirement Sum (FRS)
The standard CPF retirement sum set aside at age 55 and the reference point for CPF LIFE payouts. SGD 220,400 for members turning 55 in 2026.
Full Retirement Sum (2026)
SGD 220,400
CPF Investment Scheme (CPFIS)
The scheme under which CPF members can invest Ordinary and Special Account savings in products approved by the CPF Board. The first SGD 20,000 in the OA and SGD 40,000 in the SA stay in the accounts and cannot be invested.
Set aside in OA before investing
SGD 20,000
CPF LIFE
Singapore's national annuity scheme paying lifelong monthly income from Retirement Account savings, from the payout eligibility age of 65.
Payout eligibility age
65
CPF MediSave Account (MA)
The CPF account reserved for healthcare costs and approved insurance premiums. The 2026 Basic Healthcare Sum is SGD 79,000 for members below 65.
Basic Healthcare Sum (2026)
SGD 79,000
CPF nomination
A written instruction telling the CPF Board who is to receive a member's CPF savings after death. CPF savings do not form part of the estate, so a will does not cover them.
Minimum age to nominate
16
CPF Ordinary Account (OA)
The CPF account that can be used for housing, insurance, approved investments and education. OA savings earn a floor interest rate of 2.5% p.a.
OA floor rate (as at 2026)
2.5% p.a.
CPF Relief
A personal income tax relief for compulsory employee CPF contributions, claimable by Singapore Citizens and Permanent Residents. It is capped by the contributions payable on wages up to the CPF ceilings.
CPF annual salary ceiling
SGD 102,000
CPF Retirement Account (RA)
The CPF account created at age 55 from SA and OA savings, up to the Full Retirement Sum, to fund CPF LIFE payouts. Earns a 4% p.a. floor.
RA floor rate (as at 2026)
4% p.a.
CPF Retirement Sum Topping-Up (RSTU)
A CPF scheme to top up your own or a loved one's Special or Retirement Account. Cash top-ups qualify for up to SGD 16,000 in tax relief a year.
Max cash top-up relief
SGD 16,000
CPF Special Account (SA)
The CPF account for retirement savings held by members below age 55, earning a 4% p.a. floor — higher than the OA. Closed for members aged 55 and above from January 2025.
SA floor rate (as at 2026)
4% p.a.
Cut-off yield
The highest accepted yield among successful competitive bids at a Singapore Government Securities auction. Every successful bidder is allotted at that same yield.
Allotment method
Uniform price auction
D
Down payment
The part of a property price not covered by the housing loan, paid upfront by the buyer. Its size is set by the loan-to-value limit, and part of it has to be paid in cash.
Minimum cash portion at 75% LTV
5%
E
Earned Income Relief
A personal income tax relief for those with income from work, a trade or a profession. SGD 1,000 (below 55), SGD 6,000 (55–59), SGD 8,000 (60+).
Below age 55
SGD 1,000
Effective Interest Rate (EIR)
The true cost of a loan expressed as an annual rate, once the way interest is computed and how often repayments fall due are taken into account. It can be higher than the advertised rate.
Monthly rest loans
EIR = advertised rate
Enhanced CPF Housing Grant (EHG)
A housing grant for first-timer buyers of a new or resale HDB flat, tiered by household income. Eligible first-timer families can receive up to SGD 120,000.
Maximum EHG (families)
SGD 120,000
Executive Condominium (EC)
A strata-titled home built and sold by a private developer under HDB eligibility rules. It is treated as public housing during the Minimum Occupation Period and becomes fully private later.
Income ceiling
SGD 16,000/month
Exempt supply
A supply on which GST is not charged and for which input tax is generally not claimable. The exempt categories are financial services, digital payment tokens, residential property sales and leases, and investment precious metals.
GST charged
None
F
Family Grant
HDB’s name for the CPF Housing Grant for Resale Flats (Families). First-timer Singapore Citizen households can receive up to SGD 80,000 towards a resale flat bought on the open market.
Maximum Family Grant
SGD 80,000
Fixed Deposit Home Rate (FHR / FDR)
A floating home loan reference rate pegged to the lender's own fixed deposit rates. Like a board rate it is set by the bank, not derived from a published market benchmark.
Pegged to
The bank's deposit rates
Fixed-rate home loan
A bank home loan whose interest rate is held at a set level for the first few years of the loan. When that period ends the rate becomes variable.
Rate held for
the fixed period
Floating-rate home loan
A bank home loan whose interest rate is pegged to a reference rate plus a margin, so the rate moves up or down as the reference rate changes.
Priced as
reference rate + margin
G
Goods & Services Tax (GST)
Singapore's broad-based consumption tax on imported goods and on nearly all supplies of goods and services made in Singapore. The current rate is 9%.
Current GST rate
9%
GST-registered business
A business registered with IRAS to charge and account for GST on its taxable supplies and to claim GST on its purchases. Registration is compulsory once taxable turnover exceeds SGD 1 million.
Registration threshold
SGD 1 million
H
HDB concessionary loan
The housing loan HDB grants to eligible flat buyers at the concessionary interest rate, which is pegged at 0.1 percentage point above the CPF Ordinary Account rate. It is 2.6% p.a. for 1 July to 30 September 2026.
Concessionary rate
2.6% p.a.
HDB resale levy
A charge paid when a household that has already taken a housing subsidy buys a second subsidised flat from HDB. For a first flat sold on or after 3 March 2006 it is a fixed amount by flat type.
4-room levy (family)
SGD 40,000
Housing & Development Board (HDB)
Singapore's public housing authority, set up in 1960 to plan and develop HDB towns, build flats and sell them to eligible buyers under subsidised schemes.
Set up in
1960
I
Income tax
The tax individuals pay on chargeable income each year. Residents are taxed at progressive rates from 0% to 24% (YA 2026), administered by IRAS.
Top resident rate (YA 2026)
24%
Inflation
The rate at which the general level of consumer prices rises over time. In Singapore it is measured by the Consumer Price Index, reported as CPI-All Items inflation and as MAS Core Inflation.
CPI-All Items (Jun 2026)
1.9% y-o-y
Input tax
The GST a GST-registered business incurs on its business purchases and imports. It can be claimed back from IRAS where all the conditions for claiming are met.
Rate on standard-rated purchases
9%
L
Loan tenure
The length of time over which a loan is repaid. For the same amount borrowed, a longer tenure lowers the monthly instalment but raises the total interest paid.
Max tenure — HDB loan
25 years
Loan-to-Value (LTV)
The loan amount expressed as a percentage of a property's price or value. The applicable limit depends on how many outstanding housing loans the borrower has, the loan tenure and the borrower's age.
LTV — first housing loan
75%
Lock-in period
The period at the start of a home loan package during which the agreed rate holds and leaving the loan early can trigger a penalty. Its length and charges are set out in the property loan fact sheet.
HDB loan early repayment penalty
none
M
Minimum Occupation Period (MOP)
The period flat owners and occupiers have to physically live in their HDB flat before it can be sold, rented out whole, or private property acquired. It is 5 years for Standard flats and 10 years for Plus and Prime flats.
Standard flat MOP
5 years
Mortgage
A loan used to buy property, secured against the property itself and repaid in monthly instalments of principal and interest. In Singapore it can come from HDB or from a bank.
LTV limit — bank loan
up to 75%
Mortgage Servicing Ratio (MSR)
The share of a borrower's gross monthly income that goes towards repaying all property loans. MAS caps it at 30%, and it applies to loans for HDB flats and Executive Condominiums within their Minimum Occupation Period.
MSR cap
30% of gross income
N
Non-owner-occupier tax rate
The higher, progressive property tax rates applied to residential property the owner does not live in. They run from 12% on the first SGD 30,000 of Annual Value to 36% on the portion above SGD 60,000.
Top marginal rate
36% of AV
Non-resident tax
The way Singapore taxes an individual who is not a tax resident. Employment income is taxed at the higher of a flat 15% or the resident rates, and most other income at 24%.
Other income rate
24%
O
Option to Purchase (OTP)
The HDB-prescribed contract a flat seller grants a buyer at the agreed resale price. It runs for 21 calendar days, during which the buyer can exercise it or let it lapse.
Option Period
21 calendar days
Ordinary Wage (OW)
Wages due or granted wholly or exclusively for an employee's work in a given month and payable by the 14th of the following month. CPF contributions apply on Ordinary Wages up to SGD 8,000 a month from 1 January 2026.
OW ceiling (from 1 Jan 2026)
SGD 8,000/month
Output tax
The GST a GST-registered business charges and collects on its taxable supplies. It is paid to IRAS after deducting claimable input tax.
Rate on standard-rated sales
9%
Owner-occupier tax rate
The lower, progressive property tax rates applied to a residential property the owner lives in. They run from 0% on the first SGD 12,000 of Annual Value to 32% on the portion above SGD 140,000.
Top marginal rate
32% of AV
P
Parent Relief
A personal income tax relief for supporting a parent, grandparent or parent-in-law aged 55 and above. It is SGD 9,000 per dependant where the claimant lives with them and SGD 5,500 where they do not.
Living with dependant
SGD 9,000
Payout Eligibility Age
The age from which a CPF member can start receiving monthly retirement payouts. It is 65 for members born in 1954 or later.
Payout Eligibility Age
age 65
Personal income tax relief
Deductions from a resident's income for approved circumstances that reduce chargeable income. Total reliefs are capped at SGD 80,000 a Year of Assessment.
Personal relief cap (YA 2026)
SGD 80,000
Personal Income Tax Relief Cap
An overall limit of SGD 80,000 on the total personal income tax reliefs an individual can claim in a Year of Assessment. Anything above the cap is disregarded.
Relief cap per YA
SGD 80,000
Progressive tax rate
A tax structure where each higher band of chargeable income is taxed at a higher rate. Singapore resident rates rise from 0% to 24% (YA 2026).
Resident rate range (YA 2026)
0% – 24%
Property tax
A yearly tax on property ownership in Singapore, worked out by applying tax rates to the property's Annual Value. It is payable whether the property is owner-occupied, rented out or vacant.
Owner-occupier rates
0% to 32% of AV
Proximity Housing Grant (PHG)
A grant for buyers of a resale flat who live with or near their parents or child. Families receive SGD 30,000 to live together, or SGD 20,000 to live within 4 km.
PHG — living with parents
SGD 30,000
Purchasing power
How much a given amount of money can buy. Purchasing power falls as consumer prices rise, so the same sum buys less over time.
SGD 100 (2024) now costs
about SGD 102.90
Q
Qualifying Child Relief (QCR)
A personal income tax relief of SGD 4,000 for each qualifying child, claimable by a parent who meets the IRAS conditions. Child Relief (Disability) is SGD 7,500 per child.
QCR per child
SGD 4,000
R
Real vs nominal value
Nominal value is an amount stated in the money of the day; real value adjusts that amount for inflation so sums from different years can be compared. The CPI is used to convert between the two.
SGD 10,000 (Jun 2026) in 2024 prices
about SGD 9,720
Refinancing
Switching an existing home loan to a new lender, usually to obtain a different interest rate or package. Refinancing with the same bank instead of a new one is called repricing.
TDSR threshold
55%
Renovation loan
An unsecured term loan taken to pay for home renovation works, repaid by fixed instalments over a set period. It is not secured on the property and CPF savings cannot be applied to it.
Loan type
unsecured term loan
Rental yield
The annual rent from a property expressed as a percentage of its value. Gross rental yield uses rent before costs; net rental yield deducts the annual costs of holding the property.
Gross rental yield
annual rent ÷ price
Repricing
Moving an existing home loan onto a different package with the same bank, rather than switching to a new lender. MoneySense also calls this conversion.
Lender
stays the same
Resale flat
An HDB flat bought from its existing owner on the open market rather than from HDB. No income ceiling applies to a Standard or unclassified flat, but Plus and Prime flats, CPF housing grants and the HDB loan all carry one.
MOP before resale (Standard)
5 years
Return on Investment
The gain or loss on an investment expressed as a percentage of the amount invested. It combines investment income with any capital gain or loss, after fees.
ROI formula
Net gain ÷ amount invested
S
Seller's Stamp Duty (SSD)
A stamp duty paid by the seller when residential property is sold within the holding period after purchase. For homes acquired on or after 4 July 2025 the holding period is four years, with rates from 16% down to 4%.
Sold within 1 year
16%
Simple interest
Interest calculated only on the original principal, with no interest charged on interest already accrued. In Singapore lending it is usually described as a flat rate.
Interest base
Original principal only
Singapore Government Securities
Debt securities issued by the Government of Singapore, comprising SGS bonds, Treasury Bills and Singapore Savings Bonds. SGS bonds pay a fixed coupon and run from 2 to 50 years.
SGS bond tenors
2 to 50 years
Singapore Overnight Rate Average (SORA)
The volume-weighted average rate of unsecured overnight interbank SGD borrowing transactions in Singapore, administered and published by MAS. It is the benchmark that replaced SOR and SIBOR.
Published
9am next business day
Singapore Savings Bonds
A Singapore Government bond for individual investors with a term of up to 10 years and interest rates that step up each year. It can be redeemed in any month with no penalty.
Minimum investment
SGD 500
Stamp duty
A tax on documents relating to property, shares and leases in Singapore. On a property transaction it can take the form of Buyer’s Stamp Duty, Additional Buyer’s Stamp Duty and Seller’s Stamp Duty.
Deadline to stamp
14 days
Supplementary Retirement Scheme (SRS)
A voluntary scheme complementing CPF: contributions earn tax relief and returns grow tax-free until withdrawal. Annual cap SGD 15,300 (SC/PR), SGD 35,700 (foreigners).
Annual cap (SC/PR)
SGD 15,300
T
Tax rebate
An amount deducted from the income tax payable after it has been calculated, rather than from income. The main personal rebates are the Parenthood Tax Rebate and the one-off Personal Income Tax Rebate.
Parenthood Tax Rebate, 1st child
SGD 5,000
Tax residency
Determines how income is taxed: residents pay progressive 0–24% rates and can claim reliefs; you are generally resident if in Singapore 183+ days a year.
Resident threshold
183 days
Taxable turnover
The total value of all taxable supplies a business makes in Singapore. It is the measure tested against the SGD 1 million GST registration threshold.
Registration threshold
SGD 1 million
Total Debt Servicing Ratio (TDSR)
The share of a borrower's gross monthly income that goes towards all monthly debt obligations, including the property loan being applied for. MAS caps it at 55%.
TDSR threshold
55% of gross income
Treasury Bill
A short-term Singapore Government Security issued at a discount to its face value, in tenors of 6 months or 1 year. There is no coupon — investors receive the full face value at maturity.
Minimum investment
SGD 1,000
W
Working Mother’s Child Relief (WMCR)
A personal income tax relief for working mothers with a Singapore Citizen child. From YA 2025 it is a fixed amount for children born or adopted from 1 January 2024, and a percentage of earned income for earlier children.
First child, born from 2024
SGD 8,000
Y
Year of Assessment (YA)
The year in which income tax is charged, based on the preceding year's income. YA 2026 taxes income earned in 2025.
YA 2026 covers
2025 income
Z
Zero-rated supply
A taxable supply on which GST is charged at 0% rather than 9%. Exports of goods and international services are the two main categories.
GST rate
0%
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This glossary is provided for educational and informational purposes only. Definitions and figures are illustrative, do not constitute financial advice, and are subject to change. Always refer to the relevant government authority and seek independent professional financial advice before making any financial decisions.