Singapore Tax Revenue Climbs 9.4% to S$97.3 Billion in FY2025–26
Singapore's tax revenue reached S$97.3 billion in the 2025–26 financial year, a 9.4% increase. This collection reflects robust economic activity and consumer spending, the Inland Revenue Authority of Singapore reported.
Strong Revenue Growth
Singapore's tax revenue grew 9.4% to S$97.3 billion in the 2025–26 financial year. The Inland Revenue Authority of Singapore (IRAS) reported this on 4 September 2026. This significant collection represents 74.8% of the government's total operating revenue. It also accounts for 12.3% of the nation's gross domestic product (GDP). IRAS attributed the increase to stronger economic activity and consumer spending across the city-state.
Key Tax Contributors
Corporate income tax remained the largest contributor, rising to S$34.4 billion from S$30.9 billion previously. This comprised 35.4% of total tax collection. Goods and Services Tax (GST) was the second-largest source. GST revenue reached S$21.7 billion, up from S$20 billion in the prior year. Individual income tax provided S$20.9 billion, an increase from S$19.1 billion. Property tax contributed S$6.9 billion, while stamp duty added S$7.3 billion to the total.
Compliance and Support
Tax compliance remained high, with a low arrears rate of 0.64% of net tax assessed. This rate applied to GST, income, and property taxes. IRAS audited 8,560 cases during FY2025–26, recovering S$589 million in taxes and penalties. Concurrently, IRAS processed S$1.2 billion in disbursements to approximately 126,000 businesses.
Major support schemes included S$791 million under the Progressive Wage Credit scheme. The Senior Employment Credit scheme provided another S$298 million.
Fiscal Stability for Business
Singapore's consistent tax receipts demonstrate underlying economic health and effective fiscal management. This fiscal strength allows the government to sustain public services and infrastructure investments. For businesses, predictable revenue collection assures continued government support programmes and a stable operating environment.
The low tax arrears rate shows both strong taxpayer commitment and effective enforcement. This predictability in public finances helps long-term business planning. Regional investors observe Singapore's fiscal stability as a key indicator of economic resilience.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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