Malaysia
Asia
Malaysia has a progressive income tax system with rates from 0% to 30% for residents, and a flat 30% for non-residents. The country also imposes Sales and Service Tax (SST) and has no capital gains tax on most assets.
Malaysia Tax Cheatsheet (Calendar Year (January 1 – December 31))
Key tax metrics at a glance for residents and expats.
How Taxation Works in Malaysia
Understand the basics of Malaysia's tax system, who pays tax, and how rates apply to individuals and businesses.
Tax System
Malaysia uses a self-assessment tax system where taxpayers calculate and report their own tax obligations. The LHDNM administers tax collection and enforcement. Tax returns are filed annually, and taxpayers must pay their tax liability by the deadline.
Residents
Tax residents are taxed on worldwide income. Non-residents are taxed only on Malaysia-sourced income. Companies are taxed on Malaysian-sourced income. Withholding tax applies to certain payments to non-residents.
Non-Residents
Tax residents are individuals who reside in Malaysia for 182 days or more in a tax year, or are Malaysian citizens or permanent residents. Residents are taxed on worldwide income. Non-residents are taxed at a flat 30% on Malaysia-sourced income.
Individuals
Malaysia has a progressive income tax system with rates from 0% to 30% for resident individuals. Non-residents are taxed at a flat 30%. Various personal reliefs, deductions, and exemptions are available to reduce taxable income.
Businesses
Corporate tax is 24% for resident corporations. SMEs with paid-up capital not exceeding RM2.5 million benefit from a partial exemption on the first RM600,000 of statutory income. SST applies to sales and services at 10% and 8% respectively.
Tax Residency
Malaysia taxes residents on worldwide income and non-residents on Malaysia-sourced income. Residency is determined by 182+ days presence.
Progressive Tax Rates
Malaysia uses a progressive income tax system with rates from 0% to 30% for resident individuals.
SST vs GST
Malaysia replaced GST with SST (Sales and Service Tax) in 2018. Sales Tax is 10% on manufactured goods; Service Tax is 8% on specified services.
EPF Contributions
The Employees Provident Fund (EPF) is a mandatory savings scheme. Both employer and employee contribute to EPF, and contributions are tax-deductible.
Important Tax Information
Key facts about Malaysia's tax system to help you understand your obligations.
Tax Year
Calendar Year (January 1 – December 31)
Filing Deadline
April 30 (individuals); June 30 (businesses)
Tax Authority
Currency
MYR
Residency Rules
Tax residents are individuals who reside in Malaysia for 182 days or more in a tax year, or are Malaysian citizens or permanent residents. Residents are taxed on worldwide income. Non-residents are taxed at a flat 30% on Malaysia-sourced income.
Employer Withholding
Malaysian employers deduct monthly tax instalments (PCB) from employee salaries based on the LHDNM tax tables and remit them to the tax authority. The PCB deducted is credited against the employee's final tax liability when filing the annual return.
Payment Deadline
Tax payable by April 30; installments due monthly or quarterly
Tax Brackets & Rates
Calendar Year (January 1 – December 31) income tax brackets for Malaysia. Tax is calculated progressively — higher portions of income are taxed at higher rates.
Progressive Tax
Higher portions of income are taxed at higher rates. Only the income within each bracket is taxed at that bracket's rate.
Marginal Rate
The rate applied to your last dollar of income. It determines the tax on your next dollar earned.
Effective Rate
The average rate across all your income. Total tax divided by total income gives your true tax burden.
| Bracket | Rate | Threshold | Notes |
|---|---|---|---|
| 0% | 0% | Up to RM 5,000 | Chargeable income |
| 1% | 1% | RM 5,001 – RM 20,000 | Chargeable income |
| 3% | 3% | RM 20,001 – RM 35,000 | Chargeable income |
| 5% | 5% | RM 35,001 – RM 50,000 | Chargeable income |
| 6% | 6% | RM 50,001 – RM 70,000 | Chargeable income |
| 7% | 7% | RM 70,001 – RM 100,000 | Chargeable income |
| 8% | 8% | RM 100,001 – RM 150,000 | Chargeable income |
| 9% | 9% | RM 150,001 – RM 200,000 | Chargeable income |
| 10% | 10% | RM 200,001 – RM 250,000 | Chargeable income |
| 11% | 11% | RM 250,001 – RM 300,000 | Chargeable income |
| 12% | 12% | RM 300,001 – RM 350,000 | Chargeable income |
| 13% | 13% | RM 350,001 – RM 400,000 | Chargeable income |
| 14% | 14% | RM 400,001 – RM 450,000 | Chargeable income |
| 15% | 15% | RM 450,001 – RM 500,000 | Chargeable income |
| 16% | 16% | RM 500,001 – RM 550,000 | Chargeable income |
| 17% | 17% | RM 550,001 – RM 600,000 | Chargeable income |
| 18% | 18% | RM 600,001 – RM 650,000 | Chargeable income |
| 19% | 19% | RM 650,001 – RM 700,000 | Chargeable income |
| 20% | 20% | RM 700,001 – RM 750,000 | Chargeable income |
| 21% | 21% | RM 750,001 – RM 800,000 | Chargeable income |
| 22% | 22% | RM 800,001 – RM 850,000 | Chargeable income |
| 23% | 23% | RM 850,001 – RM 900,000 | Chargeable income |
| 24% | 24% | RM 900,001 – RM 950,000 | Chargeable income |
| 25% | 25% | RM 950,001 – RM 1,000,000 | Chargeable income |
| 30% | 30% | Above RM 1,000,000 | Chargeable income; non-residents taxed at flat 30% |
Common Deductions in Malaysia
Deductions reduce your taxable income. Here are the most common deductions available to Malaysia taxpayers.
Standard Deduction
RM 9,000 basic personal relief for individual taxpayers. Additional reliefs for married couples, children, education, medical expenses, and EPF contributions.
Personal Relief
RM 9,000 basic personal relief for individual taxpayers.
Married Couple Relief
Additional RM 6,000 relief for married couples.
Child Relief
RM 1,000 per child (up to a maximum number of children).
Education Relief
RM 5,000 per child for education expenses.
Medical Expenses
Deduction for medical expenses not covered by insurance.
EPF Contributions
Employee and employer contributions to the Employees Provident Fund are deductible.
Life Insurance Premiums
Deduction for premiums paid on life insurance policies.
Tax Credits in Malaysia
Tax credits directly reduce your tax liability. Here are the major credits available in Malaysia.
Reinvestment Allowance
Allowance for companies reinvesting in qualifying activities.
Pioneer Status
Tax exemption for companies with pioneer status in qualifying industries.
Investment Tax Allowance
Allowance for qualifying investments in certain industries.
Who Should Use This Calculator
Our Malaysia tax calculators are designed for a wide range of users. See if they match your situation.
Salaried Employees
Employees working in Malaysia who receive monthly salaries with PCB withholding and need to estimate their annual tax liability.
Freelancers & Contractors
Self-employed consultants, contractors, and gig workers who earn business or professional income and must make their own tax payments.
Business Owners
Company owners and SMEs who need to estimate corporate tax at 24%, understand SST compliance, and claim business deductions.
Expats
Foreign professionals and expats working in Malaysia who need to determine their tax residency status (182-day rule) and obligations.
Property Owners
Property investors and landlords who need to understand Real Property Gains Tax (RPGT) on property disposals.
How to Use the Malaysia Tax Calculator
Get an accurate tax estimate in just a few steps. Here is how to use our calculator effectively.
Enter Income
Input your annual employment income, business income, rental income, or other chargeable income.
Apply Reliefs
Enter eligible personal reliefs including EPF contributions, life insurance premiums, education expenses, and medical expenses.
Calculate Tax
The calculator applies the progressive tax rates to your chargeable income after deducting all eligible reliefs.
Review Effective Rate
Examine your effective tax rate and compare it against the headline rates to understand your actual burden.
Plan Ahead
Use the results to plan your EPF contributions, charitable donations, and other tax-saving strategies for the next year.
Frequently Asked Questions
Quick answers to common questions about Malaysia taxation, filing requirements, and using our calculators.
What is the income tax rate in Malaysia?
Progressive rates from 0% to 30% for resident individuals. Non-residents are taxed at a flat rate of 30%.
What is the SST rate?
Sales Tax: typically 10%. Service Tax: 8%.
Who is a tax resident in Malaysia?
An individual who resides in Malaysia for 182 days or more in a tax year, or is a Malaysian citizen or permanent resident.
What is the corporate tax rate?
24% for resident corporations on taxable income. SMEs with paid-up capital not exceeding RM2.5 million benefit from partial exemption.
What is the tax filing deadline?
April 30th for individuals, June 30th for businesses.
Explore Malaysia Tax
Income Tax
Sales and Service Tax (SST)
Tax Filing (MyTax)
Tax Reliefs & Deductions
Foreign-Sourced Income (FSI)
Rental Income & Property Tax
Business & SME Tax
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Last Updated
2025-06-15
Educational Disclaimer
The tax information and calculators on this page are for educational and informational purposes only. They do not constitute professional tax advice. Tax laws are subject to change. Always consult a qualified tax professional for advice specific to your situation.
Calculation Methodology
Tax calculations follow the Malaysian Income Tax Act 1967 and LHDNM regulations. Progressive rates are applied to chargeable income after reliefs and deductions. SST rates are applied as per the Sales Tax Act 2018 and Service Tax Act 2018.
Data Sources
- Lembaga Hasil Dalam Negeri Malaysia (LHDNM)
- Malaysian Budget 2024
- LHDNM Tax Circulars
Privacy-First
All calculations are performed locally in your browser. No personal data is collected, stored, or transmitted to any server. Your financial information never leaves your device.
Official Authority
For the most accurate and up-to-date information, visit the official government tax authority:Lembaga Hasil Dalam Negeri Malaysia (LHDNM)
Country Tax Overview
