Rental Income Tax Calculator

Calculate net taxable rental income after deducting allowable landlord expenses.

MalaysiaRental Income & Property TaxTax Period: Calendar Year (January 1 – December 31)

Statutory source alignment verified for Calendar Year (January 1 – December 31) by Finsiva Research & Methodology (Statutory Research)

Overview of Rental Income Tax Calculator

Malaysia rental income tax is governed by statutory laws enforced by Lembaga Hasil Dalam Negeri (LHDN Malaysia). This tool provides real-time, precise financial estimates using current rate schedules, thresholds, and allowances.

This tool incorporates current Malaysia tax rules governed by Lembaga Hasil Dalam Negeri (LHDN Malaysia), applying accurate tax rates, thresholds, and statutory allowances to provide an instant, reliable calculation.

Calculator Input

Your calculation results will appear here.

Enter your details above and click Calculate to see your estimated tax.

Results

Net Rental Income

RM 0.00

Rental income minus allowable deductions

Rental Tax

RM 0.00

Income tax on net rental income

Effective Rate

Tax as percentage of gross rental

This is an estimate. Consult a tax professional for accurate calculations.

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Smart Tax Savings Opportunities

Select eligible tax reliefs to calculate your instant tax reduction.

Tax Optimizer

Tax-Deductible Voluntary MPF (TVC) / Annuity+ MYR 10,200 Savings

Deduct up to MYR 60,000 per year for deferred annuity or voluntary MPF.

Voluntary Health Insurance Scheme (VHIS)+ MYR 1,360 Savings

Deduct up to MYR 8,000 per insured person for certified VHIS policies.

Home Loan Interest Claim+ MYR 17,000 Savings

Claim up to MYR 100,000 per year for mortgage interest paid on your residence.

Total Potential Tax Savings:MYR 0

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Marginal Tax Bracket Breakdown

How your income is distributed across tax brackets.

Progressive Slabs

First MYR 50,000 @ 2%MYR 1,000 Tax

Next MYR 50,000 @ 6%MYR 3,000 Tax

Next MYR 50,000 @ 10%MYR 5,000 Tax

Remainder @ 17% Top RateMYR 25,500 Tax

Step-by-Step Worked Calculation Example

RM 40,000 Rent, RM 5,000 Expenses, RM 8,000 Interest, 2025

Annual Rental Income:40000

Property Expenses:5000

Mortgage / Loan Interest:8000

Year of Assessment:2025

Result

Net Rental Income:RM 27,000.00

Rental Tax:RM 1,620.00

Effective Rate:4.05%

Net RM27,000 added to other income and taxed at progressive rates.

Calculation Methodology

Net Rental Income

Gross rent - (expenses + interest + depreciation)

Allowable deductions include interest, repairs, and wear and tear

How to Use the Rental Income Tax Calculator

Enter your earned salary, revenue, or assessable transaction value into the Rental Income Tax Calculator. Select your tax year and filing parameters to compute exact tax liability.

Input your total gross income, transaction value, or assessable metric in RM.
Select your tax year, filing status, or applicable tax slab tier.
Specify eligible deductions, reliefs, or statutory exemptions.
Review the itemized tax breakdown, marginal rates, and net take-home output.

Understanding Your Calculation Results

The results summary highlights gross input, taxable base, calculated tax owed, effective tax percentage, and remaining net take-home earnings.

Gross Metric: Total unadjusted financial baseline prior to statutory calculations.
Taxable Base: Net amount subject to tax after subtracting standard exemptions.
Calculated Tax Owed: Total monetary liability across all applicable progressive tiers.
Effective Tax Rate: Realized overall tax percentage relative to gross input.
Net Output: Final post-tax retained amount or net payable obligation.

Calculation Methodology & Formula Breakdown

The calculation is executed using the official statutory formula for Malaysia:

Tax Liability = Σ (Progressive Rate × Tier Income) - Exemptions

Review the primary rate and metric structure applied during computation:

Chargeable Income Tier (RM)	Resident Rate (%)	Personal Relief
RM 0 – RM 5,000	0%	Individual Relief RM 9,000
RM 5,001 – RM 20,000	1%	EPF Relief RM 4,000
RM 20,001 – RM 35,000	3%	Life Insurance RM 3,000
RM 35,001 – RM 50,000	6%	Medical & Lifestyle Reliefs
RM 50,001 – RM 70,000	11%	Child Relief RM 2,000 - RM 8,000
RM 70,001 – RM 100,000	19%	Non-resident rate flat 30%
RM 100,001 – RM 400,000	25%	Progressive bracket
RM 400,001 – RM 600,000	26%	High earner bracket
RM 600,001 – RM 2,000,000	28%	High earner bracket
Above RM 2,000,000	30%	Top bracket

Step-by-Step Worked Calculation Example

For an assessable metric of RM50,000 under current rules, subtracting standard statutory allowances yields your net taxable baseline. Applying progressive tiers results in an itemized breakdown of your total liability and net retained earnings.

Benefits of Using This Rental Income Tax Calculator

Calculates exact obligations based on official statutory rate schedules.
Clear breakdown of marginal rates vs effective tax burden.
Includes standard statutory allowances and exemptions.

Edge Cases & Analytical Limitations

Does not calculate specialized cross-border tax treaties.
Does not compute subjective legal exemptions without custom inputs.

Malaysia Tax Brackets & Rate Structure

The official rates and thresholds applied by Lembaga Hasil Dalam Negeri (LHDN Malaysia) for current assessment periods are detailed below:

SME Chargeable Income	SME Preferential Rate	Standard Corporate Rate
First RM 150,000	15%	24%
Next RM 150,001 – RM 600,000	17%	24%
Above RM 600,000	24%	24%

Common Pitfalls & Mistakes to Avoid

Applying flat rates across entire income instead of progressive tiers.
Failing to account for mandatory statutory payroll contributions.

Frequently Asked Questions

How does the Rental Income Tax Calculator calculate tax?

It applies official progressive rates and allowances enforced by Lembaga Hasil Dalam Negeri (LHDN Malaysia) to your net assessable input.

Is this updated for the current tax year?

Yes, all rates, thresholds, and statutory allowances are updated for the current tax assessment period.