Malaysian Income Tax Guide 2026
YA 2026 resident tax brackets, the main reliefs and rebates, and a worked example from salary to tax payable.
Updated
Malaysia taxes resident individuals on a progressive scale: each slice of income is taxed at its own rate. This guide covers the YA 2026 brackets, the main reliefs and how to estimate your tax with the PCB Calculator.
Who is a tax resident
Broadly, you are resident if you are in Malaysia for 182 days or more in the year. Residents get the progressive rates and reliefs below. Non-residents pay a flat 30% with no reliefs, so residency matters a lot.
YA 2026 tax brackets (residents)
Budget 2026 left the salary brackets unchanged from YA 2025.
| Chargeable income | Rate on this slice | Tax at top of band |
|---|---|---|
| First RM5,000 | 0% | RM0 |
| RM5,001 – 20,000 | 1% | RM150 |
| RM20,001 – 35,000 | 3% | RM600 |
| RM35,001 – 50,000 | 6% | RM1,500 |
| RM50,001 – 70,000 | 11% | RM3,700 |
| RM70,001 – 100,000 | 19% | RM9,400 |
| RM100,001 – 400,000 | 25% | RM84,400 |
| RM400,001 – 600,000 | 26% | RM136,400 |
| RM600,001 – 2,000,000 | 28% | RM528,400 |
| Above RM2,000,000 | 30% | — |
A higher bracket only applies to the income inside it. Moving into the 19% band does not raise the tax on your first RM70,000.
From gross income to chargeable income
Chargeable income = total income − reliefs. Reliefs are fixed deductions LHDN allows. The main ones:
- Individual relief: RM9,000, automatic for every resident.
- EPF and approved schemes: up to RM4,000.
- Life insurance or family takaful: up to RM3,000, separate from EPF.
- Lifestyle: up to RM2,500 for books, computers, phones, internet and sports equipment.
- Spouse: RM4,000 if your spouse has no income or elects joint assessment.
- Children: RM2,000 per child under 18, and more for children in tertiary education.
LHDN publishes the full list each year, including medical, education, PRS and childcare reliefs. Check it before you file.
Rebates and zakat
Rebates reduce the tax itself, not your income. If your chargeable income is RM35,000 or less, you get a RM400 rebate (another RM400 for a spouse with no income). Zakat paid to a state religious authority is also a rebate, up to the amount of tax you owe, which is why the Zakat Calculator and your tax return are linked.
Worked example
You earn RM8,000 a month (RM96,000 a year), single, with only the automatic reliefs:
- Reliefs: RM9,000 individual + RM4,000 EPF = RM13,000.
- Chargeable income: RM96,000 − RM13,000 = RM83,000.
- Tax: RM3,700 on the first RM70,000, plus 19% of RM13,000 (RM2,470) = RM6,170.
That works out to about RM514 a month in PCB. Claiming RM2,500 of lifestyle relief would cut the bill by RM475, because each ringgit of relief here saves 19 sen.
How to pay less tax, legally
- Use every relief you qualify for. At a 19% marginal rate, RM1,000 of relief saves RM190.
- Keep receipts for seven years. LHDN can ask for proof of any relief.
- Top up a PRS if you have room under that relief.
- Pay zakat through your employer if you are Muslim. It reduces PCB month by month.
This guide covers employment income for resident individuals. Business, rental and foreign income have their own rules. See the Rental Income Tax Calculator for rent.