Malaysia Income Tax Calculator (YA 2025/2026)

Malaysia Income Tax — How LHDN Calculates It

Malaysia uses a progressive personal income tax system administered by the Inland Revenue Board (Lembaga Hasil Dalam Negeri Malaysia, LHDN). Tax residents — defined as individuals present in Malaysia for at least 182 days in the calendar year — pay tax on a sliding scale starting at 0% for the first RM 5,000 of chargeable income and rising to 30% for income above RM 2,000,000 (YA 2025/2026 brackets per hasil.gov.my). Non-residents pay a flat 30% on Malaysian-source income with no relief access.

"Chargeable income" is total income minus all permissible reliefs and exemptions, not gross income. Reliefs reduce the tax base before the bracket rates apply. The most common reliefs are RM 9,000 self-and-dependent (claimed automatically), EPF contributions (capped at RM 4,000 combined with life insurance), life insurance premiums (RM 3,000 cap), spouse relief (RM 4,000 if spouse has no income), child relief (RM 2,000 per child, higher for disabled or unmarried 18+ children in tertiary education), and lifestyle relief (RM 2,500 covering books, sports equipment, gym, and internet subscription).

YA 2025 / YA 2026 Tax Brackets

For YA 2025 (income earned in 2025, filed by April 30, 2026): 0% on the first RM 5,000; 1% on the next RM 15,000; 3% on the next RM 15,000; 8% on the next RM 15,000; 13% on the next RM 20,000; 21% on the next RM 30,000; 24% on the next RM 300,000; 24.5% on the next RM 200,000; 25% on the next RM 400,000; 26% on the next RM 1,000,000; and 30% above RM 2,000,000. Budget 2026 (announced October 18, 2025) maintained these brackets for YA 2026 with adjustments to specific reliefs.

A RM 400 rebate applies if your chargeable income does not exceed RM 35,000. The rebate reduces tax payable but cannot create a refund — if your tax is RM 200, the rebate caps at RM 200 (your full tax) and does not refund the difference. For PCB (monthly tax deduction) calculations, see our PCB calculator. For SOCSO + EIS payroll deductions, see SOCSO/EIS calculator.

Common Reliefs You Should Not Miss

Many Malaysian taxpayers miss easily claimable reliefs. Parents medical (RM 8,000 max) for medical fees of parents 60+. Disabled spouse (RM 5,000) on top of spouse relief. Disabled child (RM 6,000) on top of standard child relief, plus another RM 8,000 for tertiary-educated disabled children. SSPN savings (RM 8,000 net deposit) for child education. EV charging facility relief (RM 2,500) for installing home EV charger. PRS Private Retirement Scheme (RM 3,000 max) separate from EPF. Always cross-check the LHDN Filing & Payment Schedule before April 30 each year.

Filing Deadlines and Payment

Individuals filing Form BE (employees with no business income) must submit by April 30 of the assessment year. Form B (with business income) is due June 30. Late filing triggers a 10% penalty on tax payable plus 5% interest. Most employees pay tax through PCB (Potongan Cukai Bulanan / Monthly Tax Deduction), which is automatically deducted by employers and remitted to LHDN. The annual filing reconciles total PCB paid against actual tax liability — overpayments are refunded automatically once filing completes.

Last updated May 2026. Sources: hasil.gov.my, treasury.gov.my.