Malaysia Income Tax Filing Guide 2026: e-Filing, Reliefs, and Deadlines
Tax season is open. e-Filing for YA 2025 started on 1 March 2026, and the deadline for most Malaysians (Form BE) is 15 May 2026. If you earn a salary, run a side hustle, or just had your first year of proper income — this guide walks you through everything: who needs to file, which form to use, every relief you can claim, and how to actually submit on MyTax without getting stuck.
If your gross annual income exceeds RM37,333 (RM3,111/month) after EPF deductions, you must file. Salaried employees use Form BE (e-Filing deadline: 15 May 2026). Self-employed and business owners use Form B (15 July 2026). File at mytax.hasil.gov.my. For YA 2025, total claimable reliefs can reach over RM65,000 if you qualify for all categories.
Key Dates and Thresholds at a Glance
| Item | Detail |
|---|---|
| e-Filing opens | 1 March 2026 |
| Form BE deadline (employment income) | 15 May 2026 (statutory: 30 April) |
| Form B deadline (business/self-employed) | 15 July 2026 (statutory: 30 June) |
| Filing threshold — salaried employees | RM37,333/year (RM3,111/month) gross after EPF |
| Filing threshold — self-employed | RM34,000/year after business expenses |
| e-Filing portal | mytax.hasil.gov.my |
| Late payment penalty | 10% surcharge on outstanding tax (Section 103 ITA) |
| Refund processing time (e-Filing) | ~30 working days |
Source: LHDN Filing Programme 2026 (hasil.gov.my), verified April 2026.
The RM34,000 Myth — Who Actually Needs to File
You've probably heard "if your income is under RM34,000 you don't need to file." That's not quite right, and the distinction matters.
The official LHDN threshold for salaried employees is RM37,333 gross annual income (approximately RM3,111/month) after EPF deductions. Below this level, your chargeable income — after the RM9,000 automatic personal relief — falls under RM35,000, where the RM400 tax rebate zeroes out any remaining liability. No tax owed, but the filing obligation still depends on whether LHDN has issued you a tax file number.
The RM34,000 figure comes from the registration trigger: if your income exceeds RM34,000 (net of EPF for business income or in certain calculations for salaried staff), LHDN expects you to register a tax file. These are two different things:
- Registration threshold → RM34,000: you should have a tax reference number
- Filing threshold → RM37,333 gross after EPF (for employed individuals): you must submit a return
- Tax payable threshold → chargeable income over RM35,000: you start owing money after the RM400 rebate
Bottom line: If LHDN has ever issued you a tax reference number, file every year — even if you owe RM0. A nil return protects you from penalty notices and keeps your record clean.
Form BE or Form B — Which One Do You File?
Most salaried employees file Form BE. But the line gets blurry the moment you have any income outside your day job.
| Your Situation | Form | Deadline |
|---|---|---|
| Salaried employee, employment income only | BE | 15 May 2026 |
| Freelancer / self-employed / consultant | B | 15 July 2026 |
| Business owner (sole proprietor / partnership) | B | 15 July 2026 |
| Employed full-time + side income (Shopee, tuition, gigs) | B | 15 July 2026 |
| Rental income only (no business) | BE | 15 May 2026 |
| Foreign employee (non-resident) | M | 30 April 2026 |
Source: LHDN individual tax guide, hasil.gov.my, verified April 2026.
If you made any money from a Shopee/TikTok shop, freelance projects, private tutoring, or ride-hailing beyond your salary — use Form B. LHDN increasingly cross-references e-commerce platform data.
Step-by-Step: How to File on MyTax (e-Filing)
For First-Time Filers: Register First
If you've never filed before, you need a Tax Identification Number (TIN) before you can access e-Filing. From 2024, for Malaysian citizens with a MyKad, your IC number IS your TIN — but you still need to activate your MyTax account.
- Go to mytax.hasil.gov.my and click e-Daftar
- Fill in your IC number, contact details, and employer information
- Complete the online form — most approvals are instant for employed individuals
- If you see "Digital Certification not exist" on first login, click the e-CP55D button to apply for your digital certificate (this is the most common first-time filer blocker)
Filing Your Return (Returning Filers)
- Log in to MyTax at mytax.hasil.gov.my with your IC number and password
- Click ezHasil Services → select e-Filing
- Choose Year of Assessment: 2025
- Verify your personal details — check marital status, bank account number for refunds, and employer details
- Enter your income: cross-reference figures against your EA Form (from employer, due by 28 Feb). Employment income, commission, and allowances should match your EA Form exactly
- Claim your reliefs: add each applicable relief (see full list below). The portal shows "Info" buttons with eligibility criteria. Keep all receipts — LHDN can audit up to 7 years back
- Review the auto-calculation: MyTax calculates your chargeable income, tax, and any rebates. If the system shows a refund, confirm your bank details are current
- Sign and submit: re-enter your IC number and password to authenticate, then click submit
- Download your acknowledgement: save the confirmation page as PDF. This is your proof of filing
The entire process takes 15–30 minutes for a straightforward salaried return. Have your EA Form, relief receipts, and bank account number on hand before you start.
Malaysia Income Tax Rates YA 2025
Malaysia uses a progressive tax system — you pay each rate only on income within that bracket, not on your total income. A RM80,000 chargeable income earner pays 19% on the slice between RM70,001 and RM80,000, not 19% on everything.
| Chargeable Income (RM) | Rate | Tax on This Bracket | Cumulative Tax |
|---|---|---|---|
| 0 – 5,000 | 0% | RM 0 | RM 0 |
| 5,001 – 20,000 | 1% | RM 150 | RM 150 |
| 20,001 – 35,000 | 3% | RM 450 | RM 600 |
| 35,001 – 50,000 | 6% | RM 900 | RM 1,500 |
| 50,001 – 70,000 | 11% | RM 2,200 | RM 3,700 |
| 70,001 – 100,000 | 19% | RM 5,700 | RM 9,400 |
| 100,001 – 400,000 | 25% | RM 75,000 | RM 84,400 |
| 400,001 – 600,000 | 26% | RM 52,000 | RM 136,400 |
| 600,001 – 2,000,000 | 28% | RM 392,000 | RM 528,400 |
| Above 2,000,000 | 30% | 30% on excess above RM2M | |
Source: LHDN individual tax rates page (hasil.gov.my), confirmed April 2026. Non-residents: flat 30% on all Malaysia-sourced income, no progressive brackets, no reliefs.
Tax rebates reduce your final tax payable (not your chargeable income): RM400 if your chargeable income is RM35,000 or below; another RM400 if your spouse has no income; and the full amount of zakat/fitrah paid.
Complete Tax Relief List — YA 2025
Reliefs reduce your chargeable income — the number the bracket table is applied to. Claim every relief you legitimately qualify for. LHDN does not give unclaimed reliefs back.
Personal and Family
| Relief | Max Amount |
|---|---|
| Individual (self) — automatic | RM 9,000 |
| Disabled individual (self) — additional | RM 7,000 |
| Non-working spouse | RM 4,000 |
| Disabled spouse — additional | RM 6,000 |
| Child under 18 (each) | RM 2,000 |
| Child 18+ in full-time tertiary education (each) | RM 8,000 |
| Disabled unmarried child (each) | RM 8,000 |
| Alimony payments (divorced spouse) | Up to RM 4,000 |
Medical and Health
| Relief | Max Amount | Notes |
|---|---|---|
| Medical expenses (self/spouse/child) — combined cap | RM 10,000 | Includes serious disease, fertility treatment, vaccinations, check-ups |
| — Vaccinations sub-limit | RM 1,000 | Within RM10,000 cap |
| — Full medical check-ups sub-limit | RM 1,000 | Within RM10,000 cap |
| — Dental treatment sub-limit | RM 1,000 | Within RM10,000 cap |
| — Learning disability assessment/rehabilitation (child) | RM 6,000 | Within RM10,000 cap; increased for YA2025 |
| Medical, special needs, nursing care for parents/grandparents | RM 8,000 | Grandparents newly eligible YA2025 |
| Supporting equipment (disabled self/spouse/child/parent) | RM 6,000 |
Insurance and EPF Contributions
| Relief | Sub-limit | Combined Cap |
|---|---|---|
| EPF employee contributions | RM 4,000 | RM 7,000 total |
| Life insurance / family takaful / voluntary EPF | RM 3,000 | |
| Education and medical insurance premiums | RM 4,000 | Separate from above |
| Private Retirement Scheme (PRS) / annuity | RM 3,000 | Extended until YA 2030 |
| SOCSO/PERKESO employee contributions | RM 350 |
The EPF + life insurance RM7,000 cap trips people up. If you contribute RM4,000 to EPF, you have RM3,000 remaining for life insurance/takaful — not another RM4,000. Check your EA Form for your actual EPF contributions; employers often max this out automatically. For a deeper look at EPF structures and withdrawals, see our EPF Withdrawal Guide.
Education and Savings
| Relief | Max Amount |
|---|---|
| Education fees (self) — diploma level and above at recognised institution | RM 7,000 |
| Skills or vocational courses (non-degree level) | RM 2,000 |
| SSPN net savings (child education fund) | RM 8,000 |
| Childcare / kindergarten fees (child age 6 and below) | RM 3,000 |
| Breastfeeding equipment (child age 2 and below) | RM 1,000 (every 2 years) |
Lifestyle and Equipment
| Relief | Max Amount |
|---|---|
| Lifestyle (books, internet subscription, personal computer/smartphone, tablet) | RM 2,500 |
| Sports equipment, gym memberships, sports activity fees | RM 1,000 |
| EV charging equipment / food waste composting equipment | RM 2,500 |
NEW for YA 2025 — Housing Loan Interest Relief
This is a brand-new relief introduced in Budget 2025, effective from 1 January 2025. First-time homebuyers who signed their Sale and Purchase Agreement (SPA) between 1 January 2025 and 31 December 2027 can claim:
| Property Price | Annual Relief | Duration |
|---|---|---|
| RM 500,000 and below | RM 7,000/year | 3 consecutive years |
| RM 500,001 – RM 750,000 | RM 5,000/year | 3 consecutive years |
If you bought your first home in 2025 at RM450,000, you can claim RM7,000 in YA 2025, RM7,000 in YA 2026, and RM7,000 in YA 2027 — a total RM21,000 reduction in chargeable income across three years. Keep your loan agreement, SPA, and bank statements as supporting documents.
NEW for YA 2025 — The 2% Dividend Tax
This is the change most competitor articles either skip or bury. From 1 January 2025, dividend income exceeding RM100,000 per year is subject to a 2% tax.
The mechanics: the first RM100,000 of dividends remains fully exempt. Only the excess is taxed at 2%. Example: if you received RM150,000 in dividends in 2025, you pay 2% on RM50,000 = RM1,000 additional tax.
What's exempt from the 2% rule:
- EPF/KWSP dividends — fully exempt, regardless of amount
- Dividends from pioneer status companies
- Cooperative society dividends
- Most unit trust distributions (subject to fund structure — verify with your fund house)
If you hold substantial stock portfolios or receive significant dividends from your own company, this is the YA 2025 change that affects you. Your company's dividend certificate (Section 108 certificate) will be required as supporting documentation.
Most salaried employees with no significant investments will not be affected. But if your dividends exceed RM100,000, declare them in your e-Filing under "Dividend Income" and the system will apply the 2% rate automatically on the excess.
Budget 2026 Changes — What Applies to YA 2025 vs YA 2026
Budget 2026 was announced in October 2025. Here's what actually applies when you file now:
| Change | Applies to | Action |
|---|---|---|
| Grandparents eligible for parent medical relief | YA 2025 ✅ | Claim now under "Medical for Parents" |
| Learning disability treatment increased to RM6,000 | YA 2025 ✅ | Claim now (up from RM4,000) |
| Sports relief extended to include parents' sports expenses | YA 2025 ✅ | Claim gym/sports fees for parents under sports relief |
| Housing loan interest relief (new) | YA 2025 ✅ | If SPA signed 1 Jan 2025+, claim RM5,000–RM7,000 |
| Vaccination relief expanded to all NPRA-registered vaccines | YA 2026 only | File this next year |
| Childcare expanded to after-school programs (up to age 12) | YA 2026 only | File this next year |
| Domestic tourism relief RM1,000 (new) | YA 2026 only | File this next year |
Source: Budget 2026 announcements and Finance Act 2025. Effective dates from KPMG Malaysia Budget 2026 highlights, confirmed April 2026.
Don't confuse Budget 2026 announcements with YA 2025 filings. Most new Budget 2026 reliefs apply to income earned in 2026 (filed in 2027). The ones marked YA 2025 above are already in the LHDN system for this year's filing.
Maximising Your Reliefs — A Practical Checklist
Run through this before you submit. Unclaimed reliefs are money left on the table.
- RM9,000 personal relief — claimed automatically. No action needed.
- EPF contributions — check your EA Form. If you contributed RM4,000 or more, you hit the EPF sub-limit. Then add life insurance/takaful up to RM3,000 for the remaining combined cap.
- Education insurance — if you pay premiums for a child education or medical insurance policy, RM4,000 relief is separate from the EPF/life insurance cap.
- SOCSO — RM350 from your payslip. Employers deduct this. Check your payslip total and claim it.
- Lifestyle RM2,500 — did you buy a laptop, smartphone, or tablet this year? Pay for internet at home? These count. Keep receipts.
- Medical check-up RM1,000 — annual health screening at any registered clinic qualifies. Keep the receipt with your name on it.
- PRS RM3,000 — if you top up a Private Retirement Scheme, claim this. It's separate from EPF relief.
- SSPN RM8,000 — if you're saving for your child's education via SSPN, this is one of the highest single-category reliefs. It's net savings (deposits minus withdrawals in the same year).
- New homebuyer? — housing loan interest relief for SPA signed Jan–Dec 2025. Get your bank's interest certificate for 2025.
Done with your taxes? The best move after filing is putting any refund to work. A high-rate fixed deposit or a robo-advisor account both beat letting it sit in a current account.
Compare Personal Loans on RinggitPlusWhat Happens If You Miss the Deadline?
Two scenarios, very different outcomes:
If you owe tax: Missing the statutory deadline (30 April for BE, 30 June for B) triggers a 10% late payment penalty under Section 103 of the Income Tax Act 1967. On a RM2,000 tax bill, that's RM200 extra. The penalty applies from the statutory deadline, not the e-Filing grace period — so if you file on 1 June instead of by 30 April, you're in the penalty window even though e-Filing shows 15 May as the deadline. Pay the outstanding amount as soon as possible to stop the 10% from accruing further.
If you owe nothing: LHDN typically does not impose financial penalties if no tax is outstanding. But you may receive a warning letter, and subsequent late filings risk an audit flag. File on time regardless — it takes 20 minutes.
If you genuinely cannot meet the deadline, call LHDN at 1-800-88-5436 before the deadline date. Document the reason. Extensions are granted in cases of serious illness, natural disaster, or other extraordinary circumstances — but you must ask proactively.
Your Tax Refund — When and How It Arrives
If your Monthly Tax Deduction (MTD/PCB) was higher than your actual tax liability — which is common if you claimed reliefs you hadn't previously told your employer about — LHDN owes you a refund.
Processing time for e-Filing submissions: approximately 30 working days from submission date. Refunds are issued via Electronic Fund Transfer (EFT) directly to your registered bank account. To update your bank account in MyTax: log in → Profile → Bank Account Information.
To check refund status: MyTax → ezHasil Services → e-Semak Bayaran Balik. If your refund is delayed past 60 days, you can call 1-800-88-5436 or visit your nearest LHDN branch with your IC and acknowledgement receipt.
One practical tip: if you've been paying PCB (Potongan Cukai Berjadual) monthly via your employer without declaring any reliefs, you may be significantly overpaying. After claiming all eligible reliefs in your e-Filing, you could get several hundred to over RM1,000 back. To reduce overpayment in future years, submit Form TP1 to your employer — it instructs them to reduce your MTD deductions based on the reliefs you expect to claim.
Find the Best Credit Card for Your SpendingFrequently Asked Questions
Do I need to file income tax if my salary is below RM34,000?
The RM34,000 figure is widely cited but incomplete. The official LHDN threshold is RM37,333 gross annual income (approximately RM3,111/month) for salaried employees after EPF deductions. Below this, no tax is owed because the RM9,000 personal relief and RM400 rebate zero out your tax liability — but if LHDN has issued you a tax reference number, you must still submit a nil return. 'No tax payable' and 'no need to file' are two different things.
What is the difference between Form BE and Form B?
Form BE is for salaried employees with employment income only — your EA Form from your employer covers everything. Form B is for anyone with business income: freelancers, self-employed individuals, business owners, or salaried employees who also earn side income from trading, consulting, or a registered business. If you earn Shopee/TikTok Shop income, tuition fees, or freelance project fees alongside your salary, use Form B. The e-Filing deadline for Form BE is 15 May 2026; for Form B it's 15 July 2026.
What happens if I miss the income tax deadline?
Missing the statutory deadline (30 April for BE, 30 June for B) without filing an extension triggers a 10% late penalty on any tax owed under Section 103 ITA. If no tax is owed, LHDN typically does not impose a penalty — but you may still receive a warning letter. The e-Filing grace period (until 15 May for BE, 15 July for B) is the practical deadline for most people. If you genuinely cannot file on time, call LHDN at 1-800-88-5436 before the deadline — they do grant extensions in documented hardship cases.
Are EPF dividends taxable in Malaysia?
No. EPF (KWSP) dividends are fully exempt from income tax, regardless of amount. This is explicitly confirmed by LHDN. The new 2% dividend tax introduced in YA 2025 — which taxes dividends exceeding RM100,000/year — does NOT apply to EPF dividends. You do not need to declare EPF dividends in your e-Filing. Only dividends from Malaysian companies (beyond the first RM100,000 threshold) and applicable foreign dividends fall under the new rule.
How do I claim the lifestyle tax relief? What counts?
The lifestyle relief (RM2,500) covers: books and reading materials, personal computer or tablet (not for business), smartphone, internet subscription, gym membership, sports equipment, and fees for sports activities. Keep the original receipt. Your own name (or spouse/child's name) must appear on the receipt. Items claimed must be for personal use — equipment claimed as a business expense separately cannot be double-claimed here. The RM1,000 sports sub-relief (gym, sports activities, equipment) is a separate line in the same section.
How long does an LHDN tax refund take?
For e-Filing submissions, LHDN's standard processing time is 30 working days from the date your return is received. In practice, refunds issued to a Malaysian bank account (via EFT) arrive faster — often within 2–4 weeks of filing if your bank details are correctly registered in MyTax. Refunds to non-registered accounts or those requiring manual review take 4–8 weeks. To check status: log in to MyTax → ezHasil Services → e-Semak Bayaran Balik. Ensure your bank account is updated in MyTax before filing to avoid delays.
Can I amend my tax return after submitting?
Yes. LHDN allows amendments to your e-Filing within the same filing period. Log in to MyTax, access your submitted return, and click 'Pindaan' (Amendment). After the filing season closes (after 15 May for BE, after 15 July for B), amendments must be submitted as a formal written request to your nearest LHDN branch under Section 131 ITA, within 5 years of the YA in question. Keep all supporting receipts for 7 years — LHDN can audit any return within that window.
Is there still a WFH equipment tax relief for YA 2025?
No dedicated WFH relief for YA 2025. The specific COVID-era PENJANA WFH equipment relief ended after YA 2021. However, the Lifestyle relief (RM2,500) covers personal purchases of computers, smartphones, tablets, and internet subscriptions — which effectively covers most WFH equipment. If your employer provides a device for work (value up to RM5,000), that is an income exemption (not a relief you claim), but it reduces your taxable employment benefit.
Last updated: April 2026. Tax brackets, reliefs, and deadlines verified from LHDN (hasil.gov.my) official pages, Budget 2026 announcements, and KPMG Malaysia Budget highlights. File at mytax.hasil.gov.my.