To ease the tax burden and support Singaporeans amid global uncertainties and inflation, the Singapore government continues to offer the Personal Income Tax (PIT) Rebate in 2025. This one-time rebate reduces the amount of tax payable for the Year of Assessment (YA) 2025 and is part of ongoing efforts to provide direct financial support to individuals.
Personal Income Tax (PIT) Rebate 2025
Overview
| Key Aspect | Details |
|---|---|
| Scheme name | Personal Income Tax (PIT) Rebate |
| Year of Assessment | YA 2025 (income earned in calendar year 2024) |
| Rebate amount | 50% of tax payable, up to a cap of $200 |
| Target group | All tax-paying Singapore tax residents |
| Disbursement method | Automatically applied to the final tax computation by IRAS |
| Purpose | Reduce payable income tax and ease the cost of living |
| Official portal | www.iras.gov.sg |
Why the PIT Rebate Matters in 2025
Singapore’s commitment to fiscal prudence is balanced with timely financial relief, especially when citizens face increased cost pressures. With persistent global inflation and rising living expenses in 2024, the government announced a 50% PIT Rebate (capped at $200) to help working individuals manage their tax bills in YA 2025.
This rebate complements other schemes like Assurance Package payouts and U-Save rebates to provide holistic support across income groups, especially for middle-income earners who contribute regularly through taxes.
Eligibility Criteria
The PIT Rebate in 2025 is automatically applied to those who meet the following criteria:
- Must be a tax resident of Singapore
- Must have personal income tax payable for YA 2025
- No need for a separate application or declaration
- Applies to both employed and self-employed individuals
Note: Non-residents and entities are not eligible for this rebate.
Breakdown of the Rebate
| Category | Details |
|---|---|
| Rebate percentage | 50% of the tax payable |
| Maximum rebate amount | $200 |
| Applicable income | Earned income in the calendar year 2024 |
| How it is applied | Automatically deducted from final tax payable during tax filing (Mar–Apr 2025) |
| Rebate shown on | Notice of Assessment (NOA) from IRAS |
Examples of How the Rebate Works
| Income Tax Payable | Rebate (%) | Rebate Value | Final Tax Payable |
|---|---|---|---|
| $120 | 50% | $60 | $60 |
| $400 | 50% (capped) | $200 | $200 |
| $700 | 50% (capped) | $200 | $500 |
This means the more tax you owe (up to a point), the more rebate you’ll receive, up to the $200 cap.
How It Is Applied
| Step | Details |
|---|---|
| Taxpayer files a return | From March to April 2025 for YA 2025 |
| IRAS processes and assesses tax | Includes income, reliefs, deductions, and payable tax |
| Rebate calculated | 50% of the assessed tax amount, capped at $200 |
| Rebate shown in NOA | Reflected as a deduction before the final payable amount |
| Payment (if any) | Reduced tax is then paid via GIRO, AXS, or PayNow |
The rebate is automatically applied and cannot be deferred, transferred, or refunded in cash if not fully used.
Who Is Excluded?
| Exclusion Criteria | Reason |
|---|---|
| Non-residents | PIT rebate is only for Singapore tax residents |
| Individuals with zero tax liability | No rebate if there’s no tax to reduce |
| Companies or partnerships | The Rebate is only for individual taxpayers |
| Individuals with foreign-sourced income | Foreign income is not taxable under normal conditions |
Related Tax Reliefs in YA 2025
Besides the PIT rebate, taxpayers may benefit from other reliefs and deductions:
| Relief Type | Maximum Amount (2025) | Applicable To |
|---|---|---|
| Earned Income Relief | Up to $8,000 | Working individuals aged 55+ |
| NSman Relief | Up to $5,000 | NSmen and their family |
| Parent Relief | Up to $9,000 | Individuals supporting parents |
| Course Fees Relief | Up to $5,500 | For skills upgrading |
| CPF Cash Top-up Relief | Up to $16,000 | For retirement-related top-ups |
When combined with the PIT Rebate, these reliefs help reduce both taxable income and tax payable.
Tips to Maximise Benefits in YA 2025
To ensure you benefit fully from the PIT Rebate:
- File your taxes on time (preferably by mid-April 2025)
- Claim all eligible reliefs and deductions to reduce your tax payable
- Verify your NOA to ensure the rebate is accurately applied
- Use IRAS’s tax calculator or preview tools to estimate your tax and rebate
- Sign up for GIRO to spread out payments over 12 months interest-free
While the PIT Rebate is automatically applied, optimizing your reliefs helps ensure that you pay the lowest possible tax after all benefits.
A Timely Boost for Working Singaporeans
The Personal Income Tax Rebate 2025 offers a timely and targeted way to lower the tax burden of working individuals. While capped at $200, the rebate provides immediate savings, helping to offset inflation and daily expenses. For middle-income Singaporeans who may not qualify for many support schemes, this rebate is a welcome financial relief.
As part of a broader support strategy, the PIT rebate contributes to a fairer and more progressive tax system while rewarding participation in Singapore’s economy.
Ask & Answer
Q1: Do I need to apply for the PIT Rebate 2025?
A: No. The rebate is automatically applied when your income tax is assessed.
Q2: What if I owe less than $200 in tax?
A: You’ll receive 50% of your actual tax as a rebate. For example, if you owe $100, you’ll get $50 rebate.
Q3: Will the rebate be refunded in cash if I have no tax payable?
A: No. The PIT rebate is not refundable and only offsets payable tax.
Q4: I’m self-employed. Will I get the rebate?
A: Yes. As long as you’re a Singapore tax resident and have tax payable, you’re eligible.
Q5: Is the rebate recurring?
A: No. PIT rebates are discretionary and announced during the Budget. The 2025 rebate applies only for YA 2025 unless further extended