Before going to the tax rates of salaries tax and personal assessment, you may want to know how to calculate the amount of tax you should pay. This article will also tell you the standard rate and annual income levels at which salaries tax payers enter the standard rate zone.
How to Calculate the Amount of Tax that You Should Pay?
Your net chargeable income, ie assessable income after deductions and allowances, is charged at progressive rates. But if what you need to pay on the basis of your net chargeable income exceeds the tax charged at standard rate on your net total income, ie assessable income after deductions but before allowances, then you have to pay the lower amount of tax.
Year of Assessment 2008/09 and 2009/10
| Net Chargeable Income | Rate | Tax | |
| $ | $ | ||
| On the First | 40,000 | 2% | 800 |
| On the Next | 40,000 | 7% | 2,800 |
| 80,000 | 3,600 | ||
| On the Next | 40,000 | 12% | 4,800 |
| 120,000 | 8,400 | ||
| Remainder | 17% |
For 2009/10, 75% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $6,000 per case.
For 2008/09, 100% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $8,000 per case.
Year of Assessment 2007/08
| Net Chargeable Income | Rate | Tax | |
| $ | $ | ||
| On the First | 35,000 | 2% | 700 |
| On the Next | 35,000 | 7% | 2,450 |
| 70,000 | 3,150 | ||
| On the Next | 35,000 | 12% | 4,200 |
| 105,000 | 7,350 | ||
| Remainder | 17% |
For 2007/08, 75% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $25,000 per case.
Year of Assessment 2006/07
| Net Chargeable Income | Rate | Tax | |
| $ | $ | ||
| On the First | 30,000 | 2% | 600 |
| On the Next | 30,000 | 7% | 2,100 |
| 60,000 | 2,700 | ||
| On the Next | 30,000 | 13% | 3,900 |
| 90,000 | 6,600 | ||
| Remainder | 19% |
For 2006/07, 50% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $15,000 per case.
Years of Assessment 2004/05 and 2005/06
| Net Chargeable Income | Rate | Tax | |
| $ | $ | ||
| On the First | 30,000 | 2% | 600 |
| On the Next | 30,000 | 8% | 2,400 |
| 60,000 | 3,000 | ||
| On the Next | 30,000 | 14% | 4,200 |
| 90,000 | 7,200 | ||
| Remainder | 20% |
Standard Rate
| Year of Assessment | Tax Rate |
| 2008/09 onwards (Note) | 15% |
| 2004/05 to 2007/08 (Note) | 16% |
Note
(1) For 2009/10, 75% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $6,000 per case.
(2) For 2008/09, 100% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $8,000 per case.
(3) For 2007/08, 75% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $25,000 per case.
(4) For 2006/07, 50% of the final tax payable under salaries tax and tax under personal assessment would be waived, subject to a ceiling of $15,000 per case.
Annual Income Levels at Which Salaries Tax Payers Enter the Standard Rate Zone
Year of Assessment 2006/07 $ | Year of Assessment 2007/08 $ | Year of Assessment 2008/09 & 2009/10 $ | |
| Single | 983,334 | 2,750,000 | 1,518,000 |
| Married | 1,616,667 | 4,450,000 | 2,436,000 |
| Married + 1 child# | 1,870,000 | 5,300,000 | 2,861,000 |
| Married + 2 children# | 2,123,334 | 6,150,000 | 3,286,000 |
| Married + 3 children# | 2,376,667 | 7,000,000 | 3,711,000 |
Including Two Dependent Parents or Grandparents Aged 60 or Above
Year of Assessment 2006/07 $ | Year of Assessment 2007/08 $ | Year of Assessment 2008/09 & 2009/10 $ | |
| Single | 1,363,334 | 3,770,000 | 2,028,000 |
| Married | 1,996,667 | 5,470,000 | 2,946,000 |
| Married + 1 child# | 2,250,000 | 6,320,000 | 3,371,000 |
| Married + 2 children# | 2,503,334 | 7,170,000 | 3,796,000 |
| Married + 3 children# | 2,756,667 | 8,020,000 | 4,221,000 |
Including Two Dependent Parents or Grandparents Both Aged 60 or Above and Living With You
Year of Assessment 2006/07 $ | Year of Assessment 2007/08 $ | Year of Assessment 2008/09 & 2009/10 $ | |
| Single | 1,743,334 | 4,790,000 | 2,538,000 |
| Married | 2,376,667 | 6,490,000 | 3,456,000 |
| Married + 1 child# | 2,630,000 | 7,340,000 | 3,881,000 |
| Married + 2 children# | 2,883,334 | 8,190,000 | 4,306,000 |
| Married + 3 children# | 3,136,667 | 9,040,000 | 4,731,000 |
Including One Dependent Parent or Grandparent Aged 60 or Above and Living With You and One Disabled Dependent Brother or Sister
Year of Assessment 2006/07 $ | Year of Assessment 2007/08 $ | Year of Assessment 2008/09 & 2009/10 $ | |
| Single | 1,933,334 | 5,300,000 | 2,793,000 |
| Married | 2,566,667 | 7,000,000 | 3,711,000 |
| Married + 1 child# | 2,820,000 | 7,850,000 | 4,136,000 |
| Married + 2 children# | 3,073,334 | 8,700,000 | 4,561,000 |
| Married + 3 children# | 3,326,667 | 9,550,000 | 4,986,000 |
Being a Single Parent with
Year of Assessment 2006/07 $ | Year of Assessment 2007/08 $ | Year of Assessment 2008/09 & 2009/10 $ | |
| 1 child# | 1,870,000 | 5,300,000 | 2,861,000 |
| 2 children# | 2,123,334 | 6,150,000 | 3,286,000 |
| 3 children# | 2,376,667 | 7,000,000 | 3,711,000 |
Note: The effects of the various deductions are not included in the above tables.
# Not include new born child allowance
Last revision date: June 2010
