Last updated: September 2026 | SeaMoneyTips
Summary
If you earn money outside your main job in 2026, you generally must pay tax on it. Singapore uses a territorial tax system, so side income earned in Singapore is taxable, while most foreign-sourced income received in Singapore is not. Your side income is combined with your salary and taxed at progressive rates from 0% to 24%. You report it on your annual tax return, and you can deduct expenses that you incurred directly to earn that income.
What Counts as Side Income in Singapore
Side income is any money you earn on top of your main salary. Common examples in 2026 include freelance writing or design work, food delivery and ride-hailing gigs, tutoring, online courses, e-commerce and dropshipping, YouTube or blog ad revenue, rental from a spare room, and interest from lending platforms.
The key test is whether the activity is carried on for profit. Occasional income from selling your used items on Carousell is generally not taxable, because it is a disposal of personal assets. But if you buy items with the intention to resell them at a profit, IRAS treats that as trading income, and it is taxable.
Income from a hobby is usually not taxable unless the hobby is run like a business. IRAS looks at factors such as how often you earn, whether you advertise, whether you keep records, and whether you intend to make a profit. If your hobby has become a business, the income is taxable.
Do You Need to Pay Tax on Side Income
You need to pay tax on side income when your total chargeable income for the year exceeds the tax-free amount. For residents, the first S$20,000 of chargeable income is taxed at 0%. Chargeable income is your total assessable income minus personal reliefs and donations.
In practice, most people with a full-time job and a small side gig end up with some tax payable, because the salary alone often already crosses into the taxable brackets. Even if no tax is payable, you must still declare the income. If IRAS sends you a filing notice, you must respond, and you must file a return if your total annual income is above the filing threshold. Check the current threshold on the IRAS website before filing.
How Side Income Is Taxed in 2026
Singapore does not have separate tax rates for side income. All your income is aggregated, and you pay tax on the total using the progressive resident rates below.
| Chargeable income | Tax rate |
|---|---|
| First S$20,000 | 0% |
| Next S$10,000 | 2% |
| Next S$10,000 | 3.5% |
| Next S$40,000 | 7% |
| Next S$40,000 | 11.5% |
| Next S$40,000 | 15% |
| Next S$40,000 | 18% |
| Next S$40,000 | 19% |
| Next S$40,000 | 19.5% |
| Next S$40,000 | 20% |
| Next S$180,000 | 22% |
| Next S$500,000 | 23% |
| Above S$1,000,000 | 24% |
For example, if your salary is S$60,000 and your side income is S$10,000, your total assessable income is S$70,000. After personal reliefs, your chargeable income is likely around S$50,000. The tax on S$50,000 is about S$550 (0% on the first S$20,000, 2% on the next S$10,000, 3.5% on the next S$10,000, and 7% on the remaining S$10,000).
Non-Resident Rates
If you are a non-resident for tax purposes, side income is taxed differently. Employment income is taxed at 15% or the resident rates, whichever is higher. Most other income, such as rental or director fees, is taxed at a flat 22%. Non-residents do not get personal reliefs. If you become a Singapore permanent resident or citizen, you are usually treated as a resident for tax purposes.
Freelance and Gig Work Tax Rules
Freelance and gig income is treated as trade or business income by IRAS. This applies to food delivery riders, ride-hailing drivers, freelance designers, writers, tutors, and online sellers. You report this income on Form B, not Form B1, even if you also have a full-time job.
Income is sourced where the work is performed. If you live in Singapore and do freelance work for an overseas client, the income is still Singapore-sourced because the services are performed here, so it is taxable. In contrast, foreign-sourced income that you receive in Singapore is generally not taxable for individuals, unless it is received through a partnership in Singapore.
Gig platforms do not usually deduct tax from your payouts. You are responsible for setting aside money for tax and declaring the income yourself. Keeping a separate bank account for gig income and tracking every payout makes filing much easier.
Expenses You Can Deduct
You can deduct expenses that are incurred wholly and exclusively to produce your side income. Common deductible expenses for freelancers and gig workers include platform commissions, vehicle fuel and maintenance for delivery work, phone and internet bills, software subscriptions, professional courses, insurance for work equipment, and advertising costs.
For equipment such as a laptop, camera, or motorcycle used for work, you can claim capital allowances on the portion used for business. A private car used for personal travel generally cannot be claimed, even if you also use it for work. You must keep receipts and records for at least five years, because IRAS may ask for them.
You cannot deduct personal expenses, such as your own meals or family costs, even if they happen while you work. You can also claim personal reliefs such as earned income relief and CPF relief on your main employment income.
How to Report Side Income in 2026
Filing is done once a year, and the deadline is in April. E-filing is usually due by 18 April and paper filing by 15 April. Use the myTax Portal with your Singpass to file online.
- Choose the right form. Use Form B if you have freelance, gig, or business income. Use Form B1 only if your income is purely from employment, interest, and dividends. You cannot use Form B1 if you have trade income.
- Add up all income. Include your salary, side income, rental, interest, and any other taxable income for the previous calendar year.
- Claim your deductions and reliefs. Enter business expenses, capital allowances, and personal reliefs in the correct sections.
- Submit before the deadline. File by 18 April to avoid late filing penalties, then pay the tax shown on your Notice of Assessment.
If you already filed as an employee in the past, do not assume your employer's report covers your side income. Employers only report your salary. Side income must be added by you.
GST and CPF on Side Income
You may need to register for GST if your taxable turnover exceeds S$1 million in a 12-month period. Very few side businesses reach this level, so most freelancers do not need to worry about GST registration.
Side income from freelance work does not attract CPF contributions, because CPF is based on employment income. However, self-employed persons can make voluntary CPF contributions under the Self-Employed Scheme to build their retirement savings and claim tax relief. If your side job is a part-time employment arrangement with an employer, CPF contributions may apply to that income. For guidance on gig economy work arrangements, see the Ministry of Manpower employment practices page.
What Happens If You Do Not Declare Side Income
IRAS matches data from banks, platforms, and other agencies. Undeclared side income is often detected. If you under-declare, you can face penalties of up to 200% of the tax undercharged, plus interest, and in serious cases prosecution. Late filing carries a fine of up to S$1,000. The safest approach is to declare everything and pay the correct tax.
FAQ
Do I need to pay tax on side income in Singapore?
Yes, if your total chargeable income exceeds the tax-free amount. Side income earned in Singapore is taxable and must be declared to IRAS, even if you already have a full-time job. The first S$20,000 of chargeable income is taxed at 0%.
What is the tax rate for side income in 2026?
There is no separate rate. Side income is added to your other income and taxed at progressive resident rates from 0% to 24%. The rate you pay depends on your total chargeable income for the year.
Can I claim expenses for my gig work?
Yes. You can deduct expenses incurred wholly and exclusively to earn your gig income, such as platform commissions, fuel, phone bills, and work equipment. Keep receipts for at least five years in case IRAS asks for them.
Is selling items on Carousell taxable?
Selling your own used items at a loss or for less than you paid is not taxable. But if you buy items to resell for profit, or you sell regularly like a business, the income is taxable trading income.
What happens if I do not declare my side income?
IRAS can detect undeclared income through data matching. You may face penalties of up to 200% of the tax undercharged, plus interest, and late filing can carry a fine of up to S$1,000.
Do I need to register for GST on my side business?
Only if your taxable turnover exceeds S$1 million in 12 months. Most side businesses and freelancers fall far below this threshold and do not need to register.
Key Takeaways
- All side income earned in Singapore is taxable and must be declared to IRAS, including freelance, gig, rental, and e-commerce income.
- Side income is taxed at the same progressive resident rates as your salary, from 0% to 24%, based on your total chargeable income.
- Freelancers and gig workers file Form B and can deduct business expenses and capital allowances with proper records.
- Undeclared side income can trigger penalties of up to 200% of the tax undercharged, so declare everything.
Conclusion
Earning side income is a smart way to grow your wealth, but it comes with tax obligations. The rules are simple: declare all income, claim the deductions you are entitled to, and file on time. If you are just starting out, our guide on Singapore freelancer tax covers the self-employed angle in more depth, and the tax deductions and reliefs guide helps you lower your bill legally. For the full filing process, read how to file your personal income tax in Singapore.
Related: Singapore Freelancer Tax Guide 2026 | Singapore Tax Deductions and Reliefs 2026
This article was written by the SeaMoneyTips Editorial Team, focused on personal finance education for Indonesia and Singapore readers. For inquiries, please contact us.