Tax Tools

Malaysia Income Tax Calculator 2026 (YA 2025) — Instant, Free

Malaysia's tax system is progressive — your effective rate is always lower than your bracket rate. Enter your gross salary and reliefs below to see exactly how much tax you owe for YA 2025, your effective rate, and your estimated monthly take-home pay.

Malaysia Income Tax Calculator — YA 2025

Results update instantly as you type. All figures are annual unless noted.

Income

Total employment income before any deductions
Standard = 11%. Opt-down = 9%. Adjust if different.

Tax Reliefs (annual)

Pre-filled with typical values. Adjust to match your actual claims.
RM 9,000 fixed
Total Tax Payable RM 0
Effective Tax Rate 0.0%
Chargeable Income RM 0
Total Reliefs Claimed RM 0
Est. Monthly Take-Home RM 0

Tax Bracket Breakdown

Bracket Rate Taxable Tax

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Malaysia YA 2025 Income Tax Rates — Full Bracket Table

These are the official LHDN progressive tax rates for individuals filing in 2026 for Year of Assessment 2025. Only the income within each bracket is taxed at that bracket's rate.

Chargeable Income (RM) Marginal Rate Tax on This Band Cumulative Tax
0 – 5,0000%RM 0RM 0
5,001 – 20,0001%RM 150RM 150
20,001 – 35,0003%RM 450RM 600
35,001 – 50,0008%RM 1,200RM 1,800
50,001 – 70,00013%RM 2,600RM 4,400
70,001 – 100,00021%RM 6,300RM 10,700
100,001 – 400,00024%RM 72,000RM 82,700
400,001 – 600,00025%RM 50,000RM 132,700
600,001 – 2,000,00026%RM 364,000RM 496,700
Above 2,000,00028%

Note: a RM 400 individual tax rebate applies if chargeable income ≤ RM 35,000. This directly reduces tax payable to zero for most low-income earners.

YA 2025 Individual Tax Reliefs — Complete List

Reliefs reduce your chargeable income before tax is calculated. Maximising all applicable reliefs can save RM 1,500–RM 8,000+ in tax annually. Keep all receipts for 7 years (LHDN audit window).

Relief Category Maximum Amount Notes
Personal reliefRM 9,000Every individual — automatic, no claim needed
EPF / SOCSO contributionsRM 4,000Employee EPF + PRS combined; auto-deducted
Life insurance / TakafulRM 3,000Premiums paid for self, spouse, children
Medical insuranceRM 3,000Separate from life insurance; hospitalization plans
LifestyleRM 2,500Books, computer, smartphone, internet, gym, sports equipment
Sports equipment (sub-category)RM 1,000Within RM 2,500 lifestyle cap; gym & sports only
Medical examinationRM 1,000Annual health screenings, dental doesn't qualify
Serious disease treatmentRM 10,000Cancer, heart disease, kidney failure, etc.
Mental health treatmentRM 1,000Registered mental health practitioners
Education fee — selfRM 7,000Masters/PhD = unlimited; other courses up to RM 7,000
Child relief (each)RM 2,000Unmarried children aged 18 and below
Child — higher education (each)RM 8,000Child at university/college or serving articles
Disabled child (each)RM 6,000In addition to the standard child relief
Spouse (non-working)RM 4,000For separate assessment filers with non-working spouse
Disabled spouseRM 5,000In addition to standard spouse relief
Parents' medical / special needsRM 8,000Medical receipts or letter of disability for parents
Disabled individual (self)RM 6,000Additional to personal RM 9,000
Domestic worker feesRM 1,500Licensed agency, official receipt required
Childcare feesRM 3,000Government-registered childcare centres
EV charging facilityRM 2,500Home EV charger installation (Budget 2024+)

5 Legal Ways to Reduce Your Malaysia Income Tax

1
Max out your EPF voluntary contribution before April 30

The EPF relief caps at RM 4,000. If you're on 11% and earn under RM 36,364/year, you're already at the cap. If you earn more, consider a voluntary top-up (i-Saraan or employer scheme) before the year-end — each extra RM 1,000 contributes RM 240 in tax savings at the 24% bracket.

2
Use all RM 2,500 of lifestyle relief every year

Internet subscriptions, books, gym memberships, a new laptop, or sports equipment all qualify. Most Malaysians already spend this — the issue is keeping receipts. Set a phone reminder to collect receipts in November–December each year.

3
Claim medical insurance premiums (up to RM 3,000)

If your employer provides medical insurance as a benefit, check whether the premiums are on your EA Form. If you also pay for a personal policy, those premiums are claimable too — up to a combined RM 3,000 cap for medical insurance separate from your life insurance claim.

4
Invest in Private Retirement Scheme (PRS)

PRS contributions up to RM 3,000/year are deductible (counted within the RM 4,000 EPF/PRS combined cap). For younger investors, PRS funds in growth allocation also benefit from the 8-year lock-in structure which reduces impulsive withdrawals. The tax saving at 24% bracket: RM 720/year for RM 3,000 contributed.

5
Upskill with an education fee claim

Courses that qualify for the RM 7,000 education relief include professional certifications (ACCA, CPA, CIMA, HRDF-claimable courses), language courses, and skills upgrading programmes — not just full-time degrees. Online platforms like Coursera, edX, and LinkedIn Learning typically issue receipts that satisfy the claim documentation requirement.

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Income Tax Calculator — Frequently Asked Questions

How do I calculate my Malaysia income tax for YA 2025?
Malaysia uses a progressive tax system on chargeable income. Step 1: start with your gross annual income. Step 2: subtract EPF contributions (up to RM 4,000 relief), SOCSO, and other approved deductions. Step 3: subtract all applicable reliefs (personal RM 9,000; lifestyle RM 2,500; life insurance RM 3,000; medical RM 3,000; and others). Step 4: the result is your chargeable income. Step 5: apply the YA 2025 progressive tax rates to each bracket of your chargeable income. Step 6: subtract the RM 400 tax rebate if your chargeable income is RM 35,000 or below. The calculator above does all 6 steps automatically.
What are the income tax brackets for Malaysia YA 2025?
Malaysia's YA 2025 income tax rates: RM 0–RM 5,000 = 0%; RM 5,001–RM 20,000 = 1%; RM 20,001–RM 35,000 = 3%; RM 35,001–RM 50,000 = 8%; RM 50,001–RM 70,000 = 13%; RM 70,001–RM 100,000 = 21%; RM 100,001–RM 400,000 = 24%; RM 400,001–RM 600,000 = 25%; RM 600,001–RM 2,000,000 = 26%; above RM 2,000,000 = 28%. These are marginal rates — only income within each bracket is taxed at that bracket's rate. A person with RM 80,000 chargeable income does NOT pay 21% on the entire RM 80,000.
What reliefs can I claim for YA 2025 to reduce my tax?
Major individual reliefs for YA 2025: Personal relief RM 9,000 (every individual); EPF/SOCSO contributions up to RM 4,000; Life insurance/Takaful premiums up to RM 3,000; Medical insurance premiums up to RM 3,000; Lifestyle (books, computer, internet, sports) up to RM 2,500; Medical examination fees up to RM 1,000; Education fees (Masters/PhD unlimited, others up to RM 7,000); Child relief RM 2,000 per qualifying child; Disabled individual additional RM 6,000; Disabled spouse RM 5,000; Serious disease treatment up to RM 10,000; Parents' medical/special needs up to RM 8,000. Married individuals with non-working spouse may also claim RM 4,000 spouse relief.
Is there a minimum income threshold for paying tax in Malaysia?
Yes. The commonly cited RM 34,000 figure is the annual income threshold below which no tax is owed (RM 9,000 personal relief + RM 400 rebate zeroes out the liability). More precisely: if your chargeable income is RM 35,000 or below, you receive a RM 400 tax rebate — for most salaried employees with EPF contributions, this makes gross income up to approximately RM 37,333–RM 38,000 tax-free. Note: even if no tax is payable, you may still need to file a nil return if LHDN has issued you a tax reference number. 'No tax owed' and 'no need to file' are different obligations.
What is the RM 400 tax rebate in Malaysia?
The individual income tax rebate of RM 400 is a direct reduction of your tax payable (not a relief against your income). It applies only if your total chargeable income for the year does not exceed RM 35,000. Example: if your chargeable income is RM 33,000, your tax before rebate is RM 540 (0% on RM 5K + 1% on RM 15K + 3% on RM 13K). After the RM 400 rebate, you pay RM 140. If your tax payable is less than RM 400, the rebate reduces it to RM 0 — you cannot receive a cash refund from the rebate. There is also a separate RM 400 rebate for a spouse with no income (for joint assessment filers).
How does EPF contribution reduce my income tax?
EPF (KWSP) employee contributions are tax-deductible up to RM 4,000 per year. This means the first RM 4,000 of your annual EPF contributions is subtracted from your income before tax is calculated. At the standard employee rate of 11%, you'd need to contribute RM 4,000/year to max out this relief — which means earning at least RM 36,364/year (RM 4,000 ÷ 11%). Higher-income employees contribute more than RM 4,000/year, but the tax relief is capped at RM 4,000 regardless. Private retirement scheme (PRS) contributions up to RM 3,000/year are deductible separately. Note: the RM 4,000 cap covers EPF + approved private retirement contributions combined.
When is the income tax filing deadline in Malaysia for 2026?
For Year of Assessment 2025 (income earned Jan 1 – Dec 31, 2025): Form BE (employment income only) — statutory deadline 30 April 2026; e-Filing grace period until 15 May 2026. Form B (business/freelance income) — statutory deadline 30 June 2026; e-Filing grace period until 15 July 2026. Form E (employers) — 31 March 2026. The e-Filing grace period is the practical deadline used by most taxpayers — LHDN does not penalise submissions made within the grace period. Late submission beyond the grace period triggers a 10% penalty on tax owed under Section 103 ITA.

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