Zakat Pendapatan Calculator Malaysia

What Is Zakat Pendapatan?

Zakat Pendapatan (income zakat) is a religious obligation for Muslim Malaysians whose qualifying annual income exceeds the nisab threshold. It is paid at 2.5% of qualifying income (gross or net depending on method chosen) and discharged through the state Pusat Pungutan Zakat (PPZ) or Majlis Agama Islam (MAIN). Crucially, zakat paid in Malaysia is a full income-tax rebate at LHDN — meaning RM1 of zakat reduces your tax bill by RM1 (up to your tax liability). This is more generous than a simple deduction and effectively makes zakat tax-neutral for most contributors (source: Lembaga Zakat Selangor, LHDN Malaysia).

Zakat is one of the five pillars of Islam (rukun Islam) and is owed annually by Muslims meeting the nisab and haul (one-year holding) requirements. Income zakat (Zakat Pendapatan) is one form; others include zakat on savings, gold/silver, business, and agricultural produce. In Malaysia, zakat is regulated by state Islamic religious councils — each state has its own PPZ/MAIN with slightly different nisab values and procedures.

How the Calculation Works in 2026

The standard formula: (1) Calculate qualifying annual income — depending on method (uruf taajil = gross, or uruf wa'iyy = net of essential expenses, EPF, SOCSO, parents/family support); (2) Verify above nisab threshold (around RM13,000-RM14,500/year in 2026, equivalent to 85g gold value at current market price); (3) Apply 2.5% rate; (4) Pay to state PPZ/MAIN, typically as a monthly salary deduction or annual lump sum.

Worked example: A Selangor employee earns RM60,000/year gross. Allowed deductions (per uruf wa'iyy method) — RM5,000 EPF/SOCSO + RM6,000 essential family expenses + RM3,600 parents support = RM14,600 total deductions. Net qualifying income RM45,400. Above the RM14,000 Selangor nisab → wajib zakat. Zakat = RM45,400 × 2.5% = RM1,135/year, or about RM94.58/month. With monthly payroll deduction (kortong gaji), this is automatic and counted toward the LHDN tax rebate.

LHDN Tax Rebate vs Tax Deduction — What's the Difference?

This is where Malaysian zakat is distinctly more generous than charitable giving in most countries. Under Section 6A(3) of the Income Tax Act 1967, zakat paid by an individual is a tax rebate, not a tax deduction. A rebate reduces tax payable directly (dollar-for-dollar), whereas a deduction reduces taxable income (saving only at your marginal rate). For a 24% bracket taxpayer paying RM1,135 of zakat, a rebate saves RM1,135 of tax; a deduction would save only RM272 (24% × RM1,135). The rebate is capped at your total tax liability (cannot exceed it), but unused zakat does NOT carry forward.

Note: zakat paid by companies (sole proprietors, partnerships, sdn bhd) is treated as a deduction at 2.5% of statutory income, capped at 2.5% of aggregate income. The rebate-vs-deduction distinction applies only to individuals filing Form B/BE.

Methods, States, and Common Mistakes

Two main calculation methods are accepted by Malaysian state councils: Uruf Taajil (gross method) — calculate zakat on the full gross annual income without any deductions; Uruf Wa'iyy (net method) — deduct essential expenses (self/family living, EPF, SOCSO, parents support, dependents) before calculating. Both methods are religiously valid; choose the one your state council uses or accepts. Most Malaysian PPZ/MAIN accept both, and the net method gives a lower zakat amount.

Common mistakes: (1) Calculating zakat as a tax deduction instead of rebate — losing the difference at your marginal rate. (2) Forgetting state-specific nisab — Selangor RM14,000 vs Kelantan RM13,500 in 2026. (3) Not using payroll deduction — easier to budget and automatic LHDN integration. (4) Mixing income zakat with savings zakat — savings (cash, gold, investments held for 1 year) is a separate calculation.

For other Malaysian tax tools, see our Malaysia income tax calculator, PCB calculator, EPF 2026 contribution, and SOCSO/EIS calculator.

Last updated April 2026. Estimates only — confirm current nisab and rates with your state PPZ/MAIN. Sources: Lembaga Zakat Selangor, LHDN Malaysia, Zakat Pulau Pinang.