A tax rebate reduces the income tax payable after the tax has been worked out, unlike a relief, which reduces the income the tax is calculated on. Singapore’s two main personal rebates are the Parenthood Tax Rebate and the one-off Personal Income Tax Rebate announced in some Budgets.
Key takeaways
- A relief reduces chargeable income; a rebate reduces the tax payable itself.
- The Parenthood Tax Rebate is a one-off rebate of up to SGD 20,000 per qualifying child, claimable once for that child.
- For a child born from 2008, the Parenthood Tax Rebate is SGD 5,000 for the first child, SGD 10,000 for the second and SGD 20,000 for the third and each subsequent child.
- A Personal Income Tax Rebate of 60% of tax payable, up to SGD 200, was granted to tax residents for YA 2025, following 50% up to SGD 200 for YA 2024.
- A rebate is set against tax payable, so it produces no payout where the tax payable is nil.
How a rebate differs from a relief
Personal reliefs are deducted from assessable income to arrive at chargeable income, and the tax rates are then applied to that lower figure. A rebate works at the other end: the tax is calculated first, and the rebate is set against the amount payable. That is why the SGD 80,000 personal income tax relief cap does not apply to rebates.
Personal Income Tax Rebate
The Personal Income Tax Rebate is a one-off rebate announced in the Budget and granted automatically by IRAS to tax residents who are taxable in that Year of Assessment. It was 60% of tax payable, up to SGD 200, for YA 2025, and 50% of tax payable, up to SGD 200, for YA 2024. No Personal Income Tax Rebate was announced for YA 2026 in Budget 2026. The rebate is calculated on tax payable after double taxation relief and other credits, and before the Parenthood Tax Rebate is offset. It cannot be carried forward and produces no cash payout.
Parenthood Tax Rebate
- 1st child born from 2008 — SGD 5,000
- 2nd child — SGD 10,000
- 3rd child — SGD 20,000
- 4th child — SGD 20,000
- 5th and each subsequent child — SGD 20,000
The Parenthood Tax Rebate is available to tax residents who are married, divorced or widowed, and is claimed once for each qualifying child. Parents may share it on an agreed apportionment, and IRAS splits it equally where they do not agree. Any unutilised amount is carried forward automatically to offset tax payable in later years, and any remaining balance is not refundable.
Key tax rebate figures
| Item | Figure |
|---|---|
| Personal Income Tax Rebate (YA 2025) | 60% of tax payable, up to SGD 200 |
| Personal Income Tax Rebate (YA 2024) | 50% of tax payable, up to SGD 200 |
| Parenthood Tax Rebate — 1st child (born from 2008) | SGD 5,000 |
| Parenthood Tax Rebate — 2nd child | SGD 10,000 |
| Parenthood Tax Rebate — 3rd and subsequent child | SGD 20,000 |
Figures as at 2026. Source: IRAS.
Worked example
A 35-year-old with employment income of SGD 50,000 in 2025 and a newborn has chargeable income of SGD 34,750 for YA 2026, giving tax payable of SGD 366.25. The Parenthood Tax Rebate of SGD 5,000 for a first child wipes that out entirely, and the unused balance is carried forward to later years.
Related terms
All Singapore glossary terms →Related calculator
Estimate Singapore income tax for YA 2026 using the IRAS resident rates and reliefs.
This page is provided for educational and informational purposes only. It does not constitute financial advice. All figures and worked examples are estimates for illustrative purposes, are subject to change, and do not reflect any individual’s circumstances. Always refer to IRAS and seek independent professional advice before making any financial decisions.