Can You Claim an Income Tax Deduction for WFH in Singapore?

Working from home (WFH) remains an ongoing arrangement for many employees in Singapore. As electricity and internet usage increase, some of these additional costs may qualify as employment expenses under Inland Revenue Authority of Singapore (IRAS) rules.

An income tax deduction Singapore reduces the amount of taxable employment income used to calculate an individual’s income tax liability. IRAS allows employees to deduct certain qualifying WFH expenses when they incur those expenses solely for employment purposes, receive no reimbursement from the employer, and meet all prescribed conditions.

This guide explains which working from home expenses qualify, how to calculate the deductible amount, and how employees should submit their claims correctly for income tax purposes.

Key takeaways

• Employees can claim qualifying WFH expenses as an income tax deduction in Singapore when the expenses are work-related, unreimbursed by the employer, and supported by proper records.
• Only certain additional expenses qualify, including the incremental increase in electricity costs and qualifying telecommunication or Wi-Fi expenses. Capital items such as desks, chairs, and laptops do not qualify.
• A work from home allowance does not automatically prevent a claim. A taxable allowance still allows employees to claim qualifying unreimbursed expenses, while employees cannot claim costs that the employer has directly reimbursed.
• Working from home deductions reduces chargeable income rather than providing a dollar-for-dollar tax refund. The actual tax saving depends on the employee’s marginal income tax rate and applies only when the employee has tax payable.
• Employees should retain bills and supporting documents for at least five years and submit qualifying employment expenses through the IRAS myTax Portal during the relevant Year of Assessment.

Conditions for claiming IRAS employment expenses

IRAS applies a strict set of conditions that determine whether a working from home expense qualifies as a deductible IRAS employment expense. An expense must satisfy all four conditions below before it becomes claimable.

• The employee incurred the expense while carrying out official work duties.
• The expense is not a private or capital expense.
• The employer did not reimburse the expense.
• The employee can support the expense with proper bills and calculations.

Claiming these expenses lowers the income on which IRAS calculates tax. It does not reduce the tax bill by the same dollar amount. For example, claiming $200 of working from home expenses does not produce a $200 tax refund. The actual tax saving depends on the marginal income tax rate.

How a work from home allowance in Singapore affects your claim

Whether you can still claim WFH expenses depends on how your employer classifies its payment. A taxable work from home allowance Singapore employees receive as income and a direct reimbursement affect your claim differently. A taxable allowance still permits you to claim qualifying unreimbursed expenses, whereas a direct reimbursement of a specific cost removes that cost from your deductible amount.

If your employer reimburses the exact cost of an expense, that amount is no longer deductible. Only out-of-pocket costs qualify as a tax deduction Singapore employees can claim against employment income.

Where your employer reimburses only part of an eligible expense, you may claim the unreimbursed remainder, because the deductible amount excludes any cost the employer has already covered. Retain records that show the reimbursed and unreimbursed portions.

If your employer pays a general allowance that forms part of your taxable employment income, you may still claim your actual qualifying and unreimbursed working from home expenses. Retain your payslips and employer correspondence to show how the payment was treated.

Working from home expenses that are tax deductible in Singapore

IRAS permits a narrow set of tax deductible Singapore working from home expenses, restricted to costs that employees incur directly and additionally as a result of performing work duties from home. The table below sets out what qualifies and what does not.

IRAS specifically identifies additional electricity, telecommunication, and qualifying Wi-Fi expenses as possible working from home deductions. The costs must arise from working at home and must not have been reimbursed by the employer.

IRAS excludes capital items such as furniture and computer equipment from the employee deduction framework, because IRAS does not permit employees to claim capital expenditure as employment expenses. The deduction applies to revenue costs only and not to expenditure on assets, regardless of whether those assets serve work purposes exclusively.

Read more: 7 Ways To Reduce Your Personal Income Tax — Legally

How to calculate your electricity deduction

Employees may claim only the increase in electricity costs caused by working from home and not the full electricity bill. The baseline level of household electricity consumption constitutes a private expense unrelated to employment duties. A practical method compares electricity bills during the WFH period with a pre-WFH baseline from a representative period before home working began.

Worked electricity claim example for YA2027

This section demonstrates the IRAS-endorsed apportionment method for calculating a deductible electricity claim. The worked example applies to Year of Assessment 2027 and uses S$80 as the average monthly electricity bill before working from home began.

You may therefore claim S$57.50 for those three months, provided the amount was not reimbursed and you hold records supporting the calculation. Apply the same method to each remaining month worked from home during the year.

Note: These figures are illustrative. Your actual claim depends on your usage, household size, and the number of months worked from home.

Read more: How Singapore Homeowners Can Avoid Costly Utility Mistakes

Claiming broadband and Wi-Fi as WFH expenses

The tax treatment depends on whether the connection existed before working from home began, and the rules differ between existing subscriptions and new connections installed specifically to enable WFH.

If you already had a broadband connection for personal use before working from home, the existing recurring subscription fee is generally not an additional employment expense.

If you installed a new Wi-Fi connection specifically to enable working from home, the recurring subscription fees may qualify.

One-time costs such as installation, equipment, and activation charges are capital expenses and do not qualify for employees, regardless of whether you established the connection for work purposes.

For mobile phone or telecommunication charges, compare your bills before and during the WFH period and claim only the additional portion attributable to work duties.

Read more: A Guide to Choosing Fibre Broadband Plans in Singapore

Tax savings from a working from home deduction

On a S$200 working from home expense deduction, the tax saving ranges from S$7 to S$30 because a deduction reduces chargeable income rather than the final tax bill. The actual saving equals S$200 multiplied by your marginal tax rate, so higher earners save more, and anyone in the 0% band with no tax payable saves nothing.

Singapore tax residents pay progressive rates ranging from 0% to 24%, where the 24% rate applies only to chargeable income above S$1M and most employees fall in the 3.5% to 15% range. The table below shows the approximate saving at each rate and illustrates why the benefit scales with income.

The actual saving depends on total chargeable income and the applicable marginal rate. For an employee on a 7% marginal rate, a S$200 deduction saves S$14 in taxes. By claiming legitimate employment expenses Singapore taxpayers are entitled to reduce taxable income and contribute to accurate annual tax filing.

How to claim your income tax deduction in Singapore

Employees claim qualifying working from home expenses through the IRAS myTax Portal as part of their annual individual income tax return. You enter the deduction under the Employment Expenses section. Before filing, calculate the claim accurately and retain supporting bills and records in case IRAS requests verification.

To file the claim through the IRAS myTax Portal, complete the following steps.

1. Log in to IRAS’ myTax Portal using SingPass.
2. Select Individuals.
3. Choose File Income Tax Return.
4. Review your employment income details.
5. Enter your qualifying claim under the section for employment expenses.
6. Check all figures before submitting the return.

Where pre-WFH comparison bills are unavailable, calculate your claim using the best available supporting records and retain documentation that shows how you determined the amount. Where actual utility bills are available, use them to calculate the deductible amount and keep them for verification if IRAS requests them.

Documents to retain when claiming WFH expenses

You are not required to upload receipts when submitting your tax return, but IRAS may request supporting documents during a later verification exercise. Retaining complete records from the outset ensures that you can substantiate any claim if required. Employees claiming working from home expenses should retain the following documents.

• Monthly electricity bills
• Mobile phone and telecommunication bills
• Broadband or Wi-Fi bills
• A spreadsheet showing your calculations
• Evidence of your WFH arrangement
• Employer correspondence about allowances or reimbursements
• Payslips showing whether a WFH allowance was taxable

IRAS requires taxpayers claiming employment expenses to keep complete and proper records for five years. You submit supporting documents only when IRAS requests them. IRAS does not accept unsupported estimates or records that cannot be verified.

Note: For expenses incurred in 2026 and claimed in YA2027, retain records until 31 December 2031.

Year of assessment for working from home expense claims

The Year of Assessment (YA) in Singapore refers to the tax year in which IRAS assesses income earned and expenses incurred in the previous calendar year. You therefore claim WFH expenses in the filing year after you incur them, and not in the year of incurrence. The following examples show how the Year of Assessment applies to WFH expense claims.

• You claim expenses incurred in 2025 in the YA2026 return.
• You claim expenses incurred in 2026 in the YA2027 return.

Employees vs self-employed and how the rules differ

IRAS applies different rules to employees and self-employed persons when they claim working from home expenses. Employees can claim only qualifying employment expenses, while self-employed persons may deduct a broader range of business expenses incurred wholly and exclusively in producing trade income. The table below sets out how the two categories differ.

Personal and private expenses remain non-deductible for both employees and self-employed persons. Where an expense relates to both business and personal use, you may claim only the business-related portion.

Conclusion

Employees in Singapore may claim an income tax deduction in Singapore for certain WFH expenses, but the qualifying list is narrower than most people assume. IRAS allows you to deduct the additional electricity and telecommunication costs directly attributable to WFH. A new Wi-Fi subscription may also qualify if it was established specifically to enable home working.

To make a valid claim, the expenses must have been incurred for work, must not have been reimbursed by your employer, and must be supported by proper records retained for at least five years.

For employees wondering how to reduce income tax Singapore, maintaining accurate records of legitimate IRAS employment expenses throughout the year is one practical step that is often overlooked.

Read more: Everything You Need To Know About Income Tax in Singapore

Frequently asked questions

Can employees claim working from home expenses in Singapore?

Yes. Employees may claim qualifying additional electricity, telecommunication, and Wi-Fi expenses incurred while working from home, provided the expenses were work-related and the employer did not reimburse them.

Can I claim my full electricity bill?

No. You may claim only the incremental increase in electricity costs attributable to working from home. The baseline level of household electricity use is a private expense.

Can I claim a desk or office chair?

No. Furniture and office equipment are capital items. IRAS does not permit employees to claim capital expenditures as employment expenses, regardless of whether the items are used exclusively for work.

Can I claim my home Wi-Fi subscription?

Not if the connection was already in place for personal use before working from home began. A recurring subscription may qualify if a new connection was established specifically to enable WFH.

Do I need to submit receipts?

You do not need to upload receipts with your tax return. All supporting records must be kept for five years and provided if IRAS requests them.

Can I claim WFH expenses if I worked from home for only part of the year?

Yes. Calculate the additional qualifying costs only for the months or periods in which you worked from home.