How to use Malaysia Income Tax Calculator
This Malaysia income tax calculator estimates your resident income tax and EPF based on your annual income and the Year of Assessment you select (2023, 2024, 2025 or 2026). It applies the RM9,000 individual relief automatically, so tax is computed on your chargeable income (gross minus RM9,000), then shows your effective rate, marginal rate and a full band-by-band breakdown plus estimated take-home after EPF. The resident schedule has been unchanged since the Budget 2023 reform that cut the middle-band rates, so all four years share the same table.
- Select your Year of Assessment (2023, 2024, 2025, or 2026) from the dropdown.
- Enter your annual gross income (salary before tax and EPF).
- Keep the filing status as Resident Individual — Malaysia taxes individuals.
- Click Calculate to see your income tax, EPF, effective rate and marginal rate.
- Review the band-by-band breakdown and your estimated take-home pay.
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How Malaysian resident tax brackets work
Malaysia taxes residents progressively on chargeable income — your total income minus reliefs. This calculator applies the RM9,000 individual relief, then taxes each band only on the income within it. The first RM5,000 is tax-free, then rates rise from 1% up to 30%. For example, RM60,000 gross becomes RM51,000 chargeable: nothing on the first RM5,000, then 1%/3%/6% up to RM50,000 (RM1,500), plus 11% on the last RM1,000 (RM110) — about RM1,610 in income tax.
| Chargeable Income (MYR) | Rate | Cumulative tax at top |
|---|---|---|
| 0 – 5,000 | 0% | RM0 |
| 5,001 – 20,000 | 1% | RM150 |
| 20,001 – 35,000 | 3% | RM600 |
| 35,001 – 50,000 | 6% | RM1,500 |
| 50,001 – 70,000 | 11% | RM3,700 |
| 70,001 – 100,000 | 19% | RM9,400 |
| 100,001 – 400,000 | 25% | RM84,400 |
| 400,001 – 600,000 | 26% | RM136,400 |
| 600,001 – 2,000,000 | 28% | RM528,400 |
| Above 2,000,000 | 30% | — |
Reliefs, the RM9,000 individual relief and EPF
Every resident gets a RM9,000 individual relief, which this tool applies as a standard deduction. Real returns also allow EPF/life-insurance, lifestyle, medical, education, spouse and child reliefs, plus a RM400 rebate when chargeable income is RM35,000 or below — none of which are modelled here, so your real tax is usually lower. Separately, EPF (KWSP) is a mandatory retirement contribution; the employee rate is 11% of wages, which the calculator subtracts in your take-home figure. SOCSO and EIS are small additional employee contributions that are not modelled.
Effective versus marginal tax rate
Your effective tax rate is your total income tax divided by your gross income — your true average. Your marginal rate is the rate on your next ringgit, set by the highest band your chargeable income reaches. Because the first RM5,000 is tax-free and the lower bands are only 1% to 6%, your effective rate stays well below your marginal rate. On RM60,000 gross your marginal rate is 11% but your effective income-tax rate is under 3%.
No state income tax in Malaysia
Malaysia levies personal income tax only at the federal level through LHDN (Lembaga Hasil Dalam Negeri). There is no state or local income tax, so your LHDN income tax plus EPF is the full picture for a salaried resident — which is why this calculator has no region selector. Non-residents are instead taxed at a flat 30%, and certain approved expatriates at 15%; those rates are not covered here.
Worked examples
Resident, RM60,000 income, YA 2025
Inputs: RM60,000 gross (chargeable RM51,000)
Result: ~RM1,610 income tax · RM6,600 EPF · 2.7% effective · 11% marginal
Resident, RM100,000 income, YA 2025
Inputs: RM100,000 gross (chargeable RM91,000)
Result: ~RM7,690 income tax · RM11,000 EPF · 7.7% effective · 19% marginal
Resident, RM150,000 income, YA 2025
Inputs: RM150,000 gross (chargeable RM141,000)
Result: ~RM19,650 income tax · RM16,500 EPF · 13.1% effective · 25% marginal
Glossary
- Chargeable income
- Your total income minus reliefs — the amount the tax brackets are applied to.
- Individual relief
- A RM9,000 deduction every resident taxpayer receives, applied here as the standard deduction.
- EPF (KWSP)
- The Employees Provident Fund — mandatory retirement savings, 11% of wages for the employee.
- SOCSO
- The Social Security Organisation (PERKESO) — employment-injury and invalidity insurance, ~0.5% employee.
- Effective tax rate
- Total income tax divided by total income — your true average tax rate.
- Marginal tax rate
- The tax rate applied to your next ringgit of income, set by the highest band you reach.
- Year of Assessment (YA)
- Malaysia’s tax year, aligned with the calendar year (1 January to 31 December).
- LHDN
- Lembaga Hasil Dalam Negeri, the Inland Revenue Board of Malaysia that administers income tax.
Related reading
Frequently Asked Questions
Why use Malaysia Income Tax Calculator?
- Applies the RM9,000 individual relief automatically to give chargeable income
- Uses the post Budget 2023 resident rates (1% to 30%) verified against the LHDN table
- Estimates your 11% EPF (KWSP) employee contribution in the take-home figure
- Shows effective rate (tax ÷ income) and marginal rate (rate on your last ringgit)
- Full band-by-band breakdown across all ten Malaysian resident tax brackets
Common use cases
- Estimate your LHDN income tax before filing your e-Filing return
- See how the RM9,000 relief and EPF reduce your take-home from gross salary
- Compare your marginal rate with your effective rate before taking on a bonus
- Check resident tax for YA 2023, 2024 or 2025 when reviewing past returns
- Understand how the Budget 2023 middle-band rate cuts apply to your income
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