MalaysiaSalaryCalculator

Official 2025 Rates

Income Tax Calculator Malaysia 2025

✓ YA 2024/2025

Calculate your annual income tax with all LHDN tax reliefs, deductions and rebates

Income & Tax Reliefs

RM

Total income for the year before deductions

RM

Annual EPF deducted from salary (usually 11%)

Personal Details

Tax Reliefs (Optional)

Add any eligible tax reliefs to reduce your tax

Books, smartphones, computers, gym, internet

Note: This calculator uses official LHDN 2025 tax rates and all available tax reliefs for YA 2024/2025.

Tax Calculation Results

💼

Enter your income to calculate tax

Complete tax calculation with all reliefs and rebates

Calculate Monthly PCB Deduction

Find out how much tax your employer deducts from your salary each month using our PCB Calculator.

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Calculate your net salary after EPF, SOCSO, EIS and PCB deductions with our comprehensive salary calculator.

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What is Income Tax in Malaysia?

Income tax in Malaysia is a direct tax imposed by the Malaysian government on the income earned by individuals and businesses. The tax is administered by the Lembaga Hasil Dalam Negeri Malaysia (LHDN), also known as the Inland Revenue Board of Malaysia (IRBM).

Malaysia operates a progressive tax system for individuals, where tax rates increase as income levels rise, ranging from 0% to 30%. This means higher earners pay a higher percentage of their income in taxes, while lower earners pay less or potentially no tax at all.

Understanding Key Terms

Gross Income

Total income before any deductions (salary, bonuses, allowances, commissions, etc.)

Taxable Income

Gross income minus EPF contributions and other statutory deductions

Chargeable Income

Taxable income minus all eligible tax reliefs. This is the amount used to calculate your tax

Income Tax vs PCB: The Difference

Many Malaysians confuse income tax with PCB (Potongan Cukai Berjadual). Here's the key difference:

  • PCB is a monthly tax deduction made by your employer throughout the year. It's an estimate of your annual tax liability, spread across 12 months.
  • Income Tax is your actual tax liability calculated when you file your annual tax return (Form BE or Form B), considering all your income sources and eligible tax reliefs.
  • When you file your return, if PCB overpaid your actual tax, you get a tax refund. If PCB underpaid, you must pay the difference.

Who Needs to Pay Income Tax?

You need to register with LHDN and pay income tax if you're a Malaysian resident and your annual income exceeds RM34,000 (after EPF deduction). However, most people with this income level effectively pay little or no tax after claiming the RM9,000 individual relief and other eligible reliefs.

💡 Pro Tip: Even if you earn below the taxable threshold, consider filing a tax return if you had PCB deducted. You'll likely get a full refund! Use our calculator above to check if you're due a refund.

Malaysia Income Tax Rates 2025 (YA 2024/2025)

Malaysia's progressive tax system means different portions of your income are taxed at different rates. Below are the official LHDN tax brackets for residents in 2025:

Chargeable Income (Annual) Tax Rate Tax on Bracket Cumulative Tax
First RM5,000 0% RM0 RM0
Next RM15,000 (RM5,001 - RM20,000) 1% RM150 RM150
Next RM15,000 (RM20,001 - RM35,000) 3% RM450 RM600
Next RM15,000 (RM35,001 - RM50,000) 6% RM900 RM1,500
Next RM20,000 (RM50,001 - RM70,000) 11% RM2,200 RM3,700
Next RM30,000 (RM70,001 - RM100,000) 19% RM5,700 RM9,400
Next RM300,000 (RM100,001 - RM400,000) 25% RM75,000 RM84,400
Next RM200,000 (RM400,001 - RM600,000) 26% RM52,000 RM136,400
Next RM1,400,000 (RM600,001 - RM2,000,000) 28% RM392,000 RM528,400
Above RM2,000,000 30% On excess RM528,400+

💰 Individual Relief

Every Malaysian taxpayer automatically receives RM9,000 personal tax relief, reducing chargeable income before tax calculation.

🎁 Tax Rebate

Chargeable income ≤ RM35,000 receives RM400 tax rebate, directly reducing your final tax bill after calculation.

📊 Progressive System

Only the income within each bracket is taxed at that rate. You don't pay 30% on all your income if you earn above RM2M.

Example: If you earn RM80,000 annually (after EPF) with RM9,000 relief, your chargeable income is RM71,000. Tax: RM0 (first RM5k) + RM150 (next RM15k @ 1%) + RM450 (next RM15k @ 3%) + RM900 (next RM15k @ 6%) + RM2,200 (next RM20k @ 11%) + RM190 (RM1k @ 19%) = RM3,890 annual tax.

How to Maximize Your Tax Reliefs in Malaysia

Tax reliefs are deductions that reduce your chargeable income, ultimately lowering your tax bill. Many Malaysians miss out on thousands of ringgit in tax savings simply because they don't claim all eligible reliefs. Here's how to maximize yours:

1. Keep All Your Receipts

The most common reason people don't claim reliefs is lack of documentation. Keep receipts for:

  • Medical expenses (hospital bills, dental, specialist consultations)
  • Education fees (course fees, exam fees, professional certifications)
  • Lifestyle expenses (books, smartphones, laptops, gym memberships, internet bills)
  • Insurance premiums (life insurance, medical insurance, takaful)

2. Maximize EPF Contributions

EPF contributions are tax-deductible up to RM4,000. If you're not hitting this limit through statutory deductions, consider making voluntary contributions. Not only do you save on tax, but you're also building your retirement fund.

3. Invest in SSPN for Your Children

SSPN (Skim Simpanan Pendidikan Nasional) contributions give you up to RM8,000 in tax relief. It's a win-win: you save on taxes while building an education fund for your children's future.

4. Claim Parent-Related Reliefs

If your parents are above 60, you can claim RM1,500 relief for supporting them. Additionally, medical expenses for parents (serious diseases) qualify for up to RM8,000 relief. These are often overlooked.

5. Use the Lifestyle Relief Wisely

The RM2,500 lifestyle relief covers a wide range: books, smartphones, computers, tablets, gym memberships, and internet subscriptions. Plan your tech purchases strategically and keep receipts.

💡 Maximum Possible Tax Relief Scenario

• Individual Relief: RM9,000

• Spouse Relief: RM4,000

• EPF: RM4,000

• Life Insurance: RM3,000

• Medical Expenses: RM10,000

• Parent Medical: RM8,000

• Education (Self): RM7,000

• SSPN: RM8,000

• Edu & Medical Insurance: RM3,000

• Lifestyle: RM2,500

• Sport Equipment: RM1,000

• Childcare: RM3,000

• Supporting Parents: RM1,500

• PRS: RM3,000

• EV Charging: RM2,500

Total: ~RM69,500

With maximum reliefs, someone earning RM100,000 could reduce their chargeable income to ~RM30,000, saving thousands in taxes!

Frequently Asked Questions About Income Tax

Income tax is your actual annual tax liability calculated when you file your tax return, considering all your income and eligible tax reliefs. PCB (Potongan Cukai Berjadual) is a monthly tax deduction system where your employer deducts an estimated amount throughout the year. When you file your return, if PCB overpaid, you get a refund; if underpaid, you pay the difference.
Malaysian residents must file their income tax return (Form BE or Form B) by April 30th each year for the previous year's income. For e-Filing, the deadline is extended to May 15th. If you're self-employed or have business income, different deadlines apply - typically June 30th for e-Filing. Always check the official LHDN website for the latest deadlines.
Yes. You can claim RM1,500 tax relief for supporting parents above 60 years old. Additionally, you can claim up to RM8,000 for medical expenses incurred by your parents (for serious diseases or fertility treatment). Your parents do not need to be fully dependent on you. However, only one sibling can claim these reliefs per parent per year.
You can claim up to RM10,000 for medical expenses for yourself, spouse, or children. This includes expenses for serious diseases (cancer, kidney failure, heart disease, Parkinson's, etc.), fertility treatment, vaccinations, and health screening. General GP visits and minor ailments don't qualify. Keep all official receipts from registered medical institutions as proof.
Chargeable income = Gross Income - EPF Contributions - All Tax Reliefs. For example, if you earn RM60,000 annually, deduct RM6,600 EPF (11%), leaving RM53,400. Then subtract all your eligible tax reliefs (minimum RM9,000 individual relief). The remaining amount (RM44,400 in this example) is your chargeable income, which determines which tax brackets apply to you.
Failing to file your tax return is a serious offense in Malaysia under the Income Tax Act 1967. LHDN can impose penalties up to RM20,000 or imprisonment up to 6 months, or both. You may also face a penalty of 10% on the tax payable if you file late. Additionally, you could be restricted from traveling overseas. Always file on time, even if you have no tax to pay or are due a refund.
Yes! If your total PCB deductions (monthly tax) throughout the year exceed your actual tax liability (after applying all reliefs), you'll receive a refund from LHDN. This commonly happens when you claim medical expenses, education costs, or lifestyle reliefs that weren't factored into your monthly PCB calculations. Refunds are typically processed within 30-90 days after filing your return via e-Filing.
The RM400 tax rebate is a direct reduction in your tax payable if your chargeable income is RM35,000 or below. Unlike tax reliefs (which reduce your taxable income), the rebate directly reduces your final tax bill after calculation. For example, if your calculated tax is RM300, the rebate reduces it to RM0. However, you don't get the remaining RM100 as a cash payment - it simply means your tax is RM0.
No. Bonuses are considered part of your gross annual income and taxed at the same progressive rates (0-30%) as your regular salary. However, PCB on bonuses may be calculated differently by your employer using the 'bonus method' formula specified by LHDN. When you file your annual tax return, all income (salary + bonus + allowances + commissions) is combined and taxed together based on your total chargeable income.
Most likely no. If you earn RM30,000 annually and contribute to EPF (11%), your income after EPF is RM26,700. After deducting the RM9,000 individual relief, your chargeable income is RM17,700. This results in minimal tax: RM0 (first RM5,000) + RM150 (next RM15,000 @ 1%) + RM81 (remaining RM2,700 @ 3%) = RM231. However, you qualify for the RM400 rebate (since chargeable income ≤ RM35,000), reducing your final tax to RM0.