Income Tax Calculator Malaysia (YA 2025)
Estimate Malaysian income tax with LHDN resident rates for YA 2025, the RM400 rebate, and EPF/life insurance relief. Free, private, and in ringgit.
How income tax works in Malaysia
Malaysia taxes resident individuals on a progressive scale administered by LHDN (Lembaga Hasil Dalam Negeri), with ten bands for YA 2025 running from 0% on the first RM5,000 up to 30% on chargeable income above RM2 million. The key concept is chargeable income: your total income after personal reliefs — the RM9,000 individual relief, spouse and child reliefs, lifestyle relief, and more — which is what the bands actually apply to. The year of assessment matches the calendar year, and non-residents pay a flat 30% instead.
Two mechanisms matter most for ordinary earners. Reliefs come off income before tax, so the RM9,000 individual relief alone keeps a meaningful slice out of the bands; EPF contributions and life insurance premiums earn further relief up to a combined ceiling. Rebates come off the tax itself: the RM400 individual rebate applies only when chargeable income is RM35,000 or below — a cliff, not a taper — which is why it matters exactly where your chargeable income lands.
This calculator applies the YA 2025 resident bands, the RM400 rebate with its RM35,000 chargeable-income ceiling, and a capped EPF/life insurance relief field (RM7,000). Other reliefs are not modelled — enter your chargeable income after the RM9,000 individual relief and any spouse, child or lifestyle reliefs you claim. The non-resident flat 30% rate, zakat rebate, and monthly PCB deductions are out of scope.
Malaysia tax brackets — YA 2025
| Taxable income (MYR) | Marginal rate |
|---|---|
| RM 0 – RM 5,000 | 0% |
| RM 5,000 – RM 20,000 | 1% |
| RM 20,000 – RM 35,000 | 3% |
| RM 35,000 – RM 50,000 | 6% |
| RM 50,000 – RM 70,000 | 11% |
| RM 70,000 – RM 100,000 | 19% |
| RM 100,000 – RM 400,000 | 25% |
| RM 400,000 – RM 600,000 | 26% |
| RM 600,000 – RM 2,000,000 | 28% |
| Above RM 2,000,000 | 30% |
Primary rebate: RM 400 (subtracted from the tax owed, creating an effective tax-free threshold). Retirement contributions are deductible up to 100% of income, capped at RM 7,000 per year. Cukai pendapatan individu pemastautin. Pelepasan diri (RM 9,000), suami/isteri, anak dan caruman EPF tidak dimodelkan — masukkan pendapatan bercukai selepas pelepasan. Cukai pendapatan bukan pemastautin: 30% tetap.
Worked examples
Salary-only estimates under the YA 2025 brackets, computed with the same formula as the calculator below (rebates and credits applied; no other income or deductions).
| Annual salary | Estimated tax | Effective rate | Take-home |
|---|---|---|---|
| RM 40,000 | RM 900 | 225.0% | RM 39,100 |
| RM 90,000 | RM 7,500 | 833.3% | RM 82,500 |
| RM 250,000 | RM 46,900 | 1876.0% | RM 203,100 |
Frequently asked questions
- Should I enter my gross salary or chargeable income?
- Chargeable income — your income after personal reliefs. This calculator does not apply the RM9,000 individual relief, spouse, child or lifestyle reliefs for you, so subtract those first. It does provide a dedicated field for EPF and life insurance relief, capped at RM7,000 as per LHDN’s YA 2025 rules, which it deducts before applying the bands.
- How does the RM400 tax rebate work?
- The individual rebate of RM400 comes straight off your tax payable, but only if your chargeable income is RM35,000 or below for YA 2025 — go even one ringgit over and the whole rebate disappears. The calculator applies this ceiling automatically. There is also a separate zakat rebate for Muslim taxpayers, which this calculator does not model.
- Are EPF contributions tax deductible in Malaysia?
- Yes — employee EPF contributions qualify for relief, sharing a combined ceiling with life insurance premiums (RM7,000 for YA 2025 in this calculator’s model). Enter your annual contribution and the cap is applied automatically. Your mandatory 11% EPF deduction usually exceeds the ceiling well before year end, so most full-time employees simply claim the maximum.
- Does this calculator handle PCB or non-resident tax?
- Neither. It estimates the annual liability for a tax resident under the YA 2025 bands — the figure your monthly PCB (potongan cukai bulanan) is meant to collect across the year — but does not model PCB per payslip, the e-Filing reconciliation, or the flat 30% non-resident rate. SOCSO and EIS contributions, and reliefs beyond the EPF/life insurance field, are also out of scope.