(Plus A Quick & Easy Way For You To Calculate Your Income Tax Payable)
Malaysia adopts a progressive income tax rate system, based on the taxpayer’s ability to pay. Hence, low-income earners are required to pay a lower tax rate compared to those with a higher income.
With effect from YA 2020, income tax rates are applied on a graduated scale starting from 0% on the first RM5,000 to a maximum of 30% on income exceeding RM2 million. Non-resident individuals are imposed with a flat rate of 30%, whilst other rates are applicable to special classes of incomes and designations.
Income Tax Rates for Residents
An individual is regarded as tax resident if he meets any of the following conditions:
- resides in Malaysia for at least 182 days in a calendar year;
- resides in Malaysia for a period of less than 182 days during the year but that period is linked by or to a period of physical presence of 182 or more consecutive days in the following or preceding year. Temporary absences from Malaysia due to the following reasons are counted as part of the consecutive days, provided that the individual is in Malaysia before and after each temporary absence:
i) business trips
ii) treatment for ill-health
iii) social visits not exceeding 14 days
- resides in Malaysia for 90 days or more during the year and, in any 3 of the 4 immediately preceding years, he was in Malaysia for at least 90 days or was resident in Malaysia; or
- resident for the year immediately following that year and for each of the 3 immediately preceding years.
See the table below for YA 2023 / 2024 tax rates by chargeable income brackets:
| Chargeable Income | Income Tax Rate (%) | Gross Tax Payable (RM) |
|---|---|---|
| On RM5,000 Next RM5,000 | 0 1 | 0 50 |
| On RM10,000 Next RM10,000 | – 1 | 50 100 |
| On RM20,000 Next RM15,000 | – 3 | 150 400 |
| On RM35,000 Next RM15,000 | – 6 | 600 900 |
| On RM50,000 Next RM20,000 | – 11 | 1,500 2,200 |
| On RM70,000 Next RM30,000 | – 19 | 3,700 5,700 |
| On RM100,000 Next RM50,000 | – 25 | 9,400 12,500 |
| On RM150,000 Next RM100,000 | – 25 | 21,900 24,000 |
| On RM250,000 Next RM150,000 | – 25 | 46,900 37,500 |
| On RM400,000 Next RM200,000 | – 26 | 84,400 52,200 |
| On RM600,000 Next RM400,000 | – 26 | 136,400 112,000 |
| On RM1,000,000 Next RM1,000,000 | – 28 | 248,400 280,000 |
| On RM2,000,000 | – 30 | 528,400 – |
Curious about which tax bracket applies to you?
Use our free personal income tax calculator to get an estimate of your income tax payable.
Or scroll further down to learn more about how it works.
Income Tax Rates for Non-Residents
For non-residents earning income in Malaysia, tax rates are imposed as below:
Income Tax Rates for Special Cases
The following categories of individuals are taxed at a flat 15% on the employment income:
- Knowledge workers residing in Iskandar Malaysia and employed with a designated company engaged in a qualified activity in that specified region.
- An approved individual under the Returning Expert Programme who is a resident. The incentive is for 5 consecutive YAs. (Applications received by Talent Corporation Malaysia Berhad from 1 January 2021 to 31 December 2023, extended to 31 December 2027).
- A non-citizen receiving a monthly salary of not less than RM25,000 and holding key / C-Suite positions in a company that has been granted relocation tax incentive under the PENJANA initiative (limited to 5 non-resident individuals per company). The incentive is for a period of 5 consecutive years. (Announced to be extended until 2024).
- A non-citizen individual receiving a monthly salary of at least RM35,000 and holding key / C-Suite positions in a new company approved as a Global Services Hub (limited to 3 non-citizen individuals). The incentive is for a period of 3 consecutive YAs. (Application received by MIDA from 14 October 2023 until 31 December 2027).
| Income Type | Tax Rate (%) |
|---|---|
| Public entertainer’s professional income | 15 |
| Interest | 15 |
| Royalties | 10 |
| Special classes of income: – Rental of moveable properties – Advice, assistance or services rendered in Malaysia | 10 |
| Dividends (single-tier) | Exempt |
| Business income, employment income, discounts, rents, premiums, pensions, annuities, other periodical payments and other gains or profits (include payments received for part-time / occasional broadcasting, lecturing, writing, etc.) | 30 |
| Income other than the above | 10 |
| Foreign film actors and movie crews who carry out filming in Malaysia | 0-10 |
Personal Income Tax Calculator for YA 2023
Preparing to file your personal income tax can be a challenging, even frustrating, experience annually for most people. You want to make sure that all your bases are covered while benefiting from available tax reliefs and incentives while making your calculations.
With that in mind, we’ve developed a Malaysian personal income tax calculator that enables you to do your calculations in a quick, easy and efficient way. Using this free tool, you’ll be able to forecast your income tax payables, make necessary tweaks and also see how much you’ll be able to get back.
How To Use This Calculator: This personal income tax calculator will help you work out your total income tax payable in a quick and hassle-free way.
When To Use This Calculator:
- Once you know your gross annual income
- You want to work out your total taxable income and the total tax amount payable
What You Need:
- Your financial information: Sources of income, EPF / SOCSO / PRS contributions, insurance premiums etc
- Daily expenses such as family, medical, childcare, transport, education etc
- Any costs related to the care of a disabled family member should also be taken into account
Results: You’ll get a quick estimation on your net taxable income, how much tax you should pay with the latest tax rates and tax reliefs.
Get your income tax estimate now with our free personal income tax calculator.
We’re Here to Help
We understand that it isn’t easy to manage your own taxes and we’re here to help demystify the whole process. Reach out to any of our trusted tax consultants for expert assistance in filing your personal income tax.