All You want to know about Malaysia Tax Income
Income Tax Rate Malaysia 2026 (Updated Guide)
The income tax rate Malaysia 2026 has been officially updated for the Year of Assessment (YA) 2026. Malaysia adopts a progressive tax system, meaning the more you earn, the higher your tax rate.
In this guide, we explain the full tax bracket structure, personal income tax rates, available tax reliefs, and filing deadlines in Malaysia. Whether you are a salaried employee or a sole proprietor, this updated guide will help you understand how much tax you need to pay — and how to file correctly before the deadline.
Tax Relief Malaysia 2026
Tax Relief for Individual
| Types of relief | YA 2025 / YA 2026 (RM) |
|---|---|
|
Individual and dependent relatives |
9,000 |
|
Disabled individual |
7,000 |
|
Education Fee -Education fee for tertiary level or postgraduate level -Personal upskilling / self-enhancement course (Limit to RM2,000) |
7,000 |
|
Payment of Housing Loan interest (first home ownership) House Price < RM500,000 House Price RM500,000 – RM 750,000 |
7,000 5,000 |
Tax Relief for Parents & Spouse
| Types of relief | YA 2025 / YA 2026 (RM) |
|---|---|
|
Spouse / payment of alimony to former wife |
4,000 |
|
Disable Spouse |
6,000 |
Tax Relief for Medical & Special Needs
| Types of relief | YA 2025 / YA 2026 (RM) |
|---|---|
|
Medical Expenses for parents and grandparents -Medical treatment, dental treatment, medical care and special needs -Full medical check-up and vaccinations (Restricted to RM1,000) |
8,000 |
|
Basic supporting equipment for disabled (Self, Spouse, Child or Parents) |
6,000 |
|
Medical expenses -Serious illnesses, Fertility treatments, Vaccinations (Restricted to RM1,000), Dental check-up & treatment (Restricted to RM1,000) -Medical examination expenses includes full medical check-up, mental health examination or consultation, purchase of medical equipment and COVID-19 detection tests (Restricted to RM1,000) -Early intervention/rehabilitation learning disability child (age 18 and below) (Restricted to RM6,000) |
10,000 |
Tax Relief for Lifestyles
| Types of relief | YA 2025 / YA 2026 (RM) |
|---|---|
|
Lifestyle Reliefs (Self, Spouse, Child) – Books, journals, magazines & newspapers – Personal computer, smartphone or tablet (non-business use) – Internet subscription (under own name) – Skill improvement & personal development courses |
2,500 |
|
Additional Lifestyle Reliefs -Purchase of sports equipment -Rental / entrance fees to sport facilities -Registration fee for sports competitions -Gym or sports training fees |
1,000 |
|
Electric Vehicle charging facilities & domestic food waste composting machine (personal Use) |
2,500 |
Tax Relief for Children
| Types of relief | YA 2025 / YA 2026 (RM) |
|---|---|
|
Purchase of breastfeeding equipment
*child aged 2 years and below (allowed once in every TWO (2) years of assessment) |
1,000 |
|
Child Care Centre / Kindergarten *Age 6 years and below |
3,000 |
|
Child under 18 years old (Unmarried) |
2,000 |
|
Child aged 18 and above **Unmarried and studying full- time (Diploma and above in Malaysia / Degree and above outside Malaysia) |
8,000 |
|
Child aged 18 and above **Unmarried and studying full- time (Matriculation/Pre-university / A-level courses in Malaysia) |
2,000 |
|
Disable Child + Additional (Disabled child aged 18 and above, Unmarried and Studying full-time (Diploma and above in Malaysia / Degree and above outside Malaysia) |
8,000 + 8,000 |
Insurance & Contributions
| Types of relief | YA 2025 / YA 2026 (RM) |
|---|---|
|
Life Insurance & EPF – Life Insurance Premium / Contribution to EPF (Voluntary) / Both (Restricted to RM3,000) – Contribution to EPF (Voluntary/ Compulsory)/Approved Scheme (Restricted to RM4,000) |
7,000 |
|
Education and Medical Insurance (Self, Spouse, Child) |
4,000 |
|
Socso Contribution (PERKESO) |
350 |
|
SSPN (Net Saving) **MINUS total withdrawal in 2025 |
8,000 |
|
Private Retirement Scheme and Deferred Annuity |
3,000 |
Income Tax Rate Malaysia 2026 (Tax Bracket Table)
Malaysia uses a progressive income tax system. This means income is taxed in tiers, and each tier has a different rate.
| Chargeable Income (RM) | Calculations (RM) | Tax Rate (%) | Tax (RM) |
|---|---|---|---|
|
0 – 5,000 |
On the First 5,000 |
0% |
0.00 |
|
5,000 – 20,000 |
On the First 5,000 Next 15,000 |
1% |
0 150 |
|
20,001 – 35,000 |
On the First 20,000 Next 15,000 |
3% |
150 450 |
|
35,001 – 50,000 |
On the First 35,000 Next 15,000 |
6% |
600 900 |
|
50,001 – 70,000 |
On the First 50,000 Next 20,000 |
11% |
1,500 2,200 |
|
70,001 – 100,000 |
On the First 70,000 Next 30,000 |
19% |
3,700 5,700 |
|
100,001 – 400,000 |
On the First 100,000 Next 300,000 |
25% |
9,400 75,000 |
|
400,001 – 600,000 |
On the First 400,000 Next 200,000 |
26% |
84,400 52,000 |
|
600,001 – 2,000,000 |
On the First 600,000 Next 1,400,000 |
28% |
136,400 392,000 |
|
2,000,000 & Above |
On the First 2,000,000 Next remaining ringgit |
30% |
528,400 ∞ |
2026 Income Tax Filing Deadline Malaysia
For Year of Assessment 2026:
Form BE (salaried individuals): Usually due by 30 April 2026
Form B (sole proprietors): Usually due by 30 June 2026
e-Filing extensions may apply
Late submission may result in penalties of 10% or more on outstanding tax payable.
To avoid miscalculations or late penalties, many taxpayers choose professional assistance before the deadline.
2026 Malaysia Tax Filing Guide: How to Prepare Your Annual Taxes
Filing your taxes doesn’t have to be stressful. With a bit of planning and organisation, you can make the process smooth, ensure compliance, and even maximise your tax savings. Here’s a step-by-step guide to help you prepare for your Malaysia Personal Income Tax for YA 2025.
1. Gather and Organise Your Documents Early
One of the first steps in tax preparation is collecting all the supporting documents you might need—receipts, invoices, statements, and other records that back up your deductions and claims.
Keep in mind that the Inland Revenue Board of Malaysia (IRBM) may request these documents during an audit, and you’re required to retain them for 7 years from the year you submit your tax return. Missing documents can lead to disallowed claims or extra tax assessments, so staying organised is key.
2. Make the Most of Personal Tax Reliefs
Personal tax reliefs can significantly reduce your taxable income, meaning you pay less tax. Take the time to review the latest IRBM guidelines or infographics to ensure you’re claiming all the reliefs you’re eligible for.
Every ringgit counts, so don’t leave potential savings on the table!
3. Choose the Right Tax Form
Using the correct tax form is crucial for accurate filing:
Form e-BE: For resident individuals with employment income only.
Form e-B: For residents with business income, employment income, or other sources.
Form M: For non-resident individuals with business, employment, or other income.
Filing with the wrong form can result in penalties—or even the hassle of resubmitting your return. Double-check which form applies to you before submitting.
4. Keep Track of Important Deadlines
Missing deadlines can lead to late payment penalties, so mark your calendar:
For Individuals with Non-Business Income
Submission deadline: 30 April 2026
Possible grace period: 15 May 2026
For Individuals with Business Income
Submission deadline: 30 June 2026
Possible grace period: 15 July 2026
⚠️ Note: Grace periods may change. Always check the IRBM Official Portal for the latest updates.
Tax Residence Status of Individuals in Malaysia
An individual is considered a tax resident in Malaysia if they meet any of the following criteria:
1. Presence of at least 182 days
The individual is in Malaysia for 182 days or more within a calendar year.
2. Linked periods of presence
Even if the individual is in Malaysia for less than 182 days in a year, they may still be considered a tax resident if their stay is connected to 182 or more consecutive days in the preceding or following year. Temporary absences from Malaysia are included in these consecutive days if the individual is in Malaysia before and after each absence. Valid reasons for temporary absences include:
Business trips
Medical treatment
Social visits not exceeding 14 days
3. Frequent shorter stays
The individual is in Malaysia for 90 days or more during the year and, in at least 3 of the 4 immediately preceding years, was either present in Malaysia for 90 days or more or was a resident.
4. Continuous residency
The individual is considered a tax resident if they were a resident in the immediately preceding year and for each of the 3 years before that.
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