
As part of Budget 2025, the Malaysian government has introduced several updates to personal tax reliefs to help ease the cost of living. From higher reliefs for disabled individuals and expanded medical expense coverage to extended child care fee deductions and new green tech incentives, these changes aim to support Malaysians across different needs.
Here’s a quick guide to the key updates you should know to maximise your tax savings in YA 2025.
Medical Expenses Relief Expanded to Benefit Families
Disabled Individual, Spouse And Child
Effective from the year of assessment 2025, the Malaysian government will introduce higher tax reliefs for disabled individuals, their spouses, and children.
Under the new budget, tax relief for disabled individuals will increase from RM6,000 to RM7,000. Similarly, tax relief for disabled spouses will rise from RM5,000 to RM6,000, while the relief for disabled children will be raised from RM6,000 to RM8,000.
The rationale behind this increase is the continuous rise in the cost of living in Malaysia. By offering higher tax deductions, the government seeks to ease the economic challenges faced by disabled individuals and their families. This policy adjustment underscores the government’s dedication to ensuring that all citizens, regardless of their abilities, have access to a sustainable standard of living.
Medical Expenses For Parents
Medical expenses for parents which cover medical treatment, dental treatment, complete medical examination including vaccination, and special needs and carers, are now expanded to cover grandparents as well.
Medical Expenses For Self, Spouse And Child
COVID-19-related expenses were announced in YA2021 to encourage the public to undergo detection tests and vaccinations. Effective from YA2025, coverage for COVID-19 detection tests will be expanded to include expenses for purchasing all self-testing medical devices registered under the Medical Devices Act 2012 [Act 737], such as glucometers, blood pressure monitors, and thermometers. These expenses also cover disease detection tests conducted in clinics and hospitals.
This update aims to encourage the public to perform regular health monitoring at home or seek medical testing at clinics and hospitals, as cases of diseases other than Covid-19 have been increasing in recent years.
Besides that, tax deduction for the diagnostic assessment of learning disability or early intervention program or rehabilitation treatment for learning disability for a child below 18 years increased from RM4,000 to RM6,000.
Insurance Tax Relief Increased to Offset Premiums Spike
Education And Medical Insurance
Based on the presentation by BNM and MOF to parliamentarians, the cost of a private hospital visit increased by approximately 22%, rising from RM8,800 in 2020 to RM10,700 in 2023. Meanwhile, the claim frequency grew from 6.8 per 100 policyholders of medical insurance in 2020 to 8.6 in 2022.
This brings effect to the increase of the education and medical insurance tax relief which increase from RM3,000 to RM4,000 in YA 2025 since the medical insurance premiums might also increase in YA 2025.

Source: CodeBlue
Extensions and New Conditions for Education Tax Benefits
Child Care Fees
Extend the period of three years from YA2025 to YA2027 for the extended Rm1,000 for child care fee to kindergarten / child care centre.
Skim Simpanan Pendidikan Nasional (SSPN)
Effective from 2025, the Skim Simpanan Pendidikan Nasional (SSPN) tax relief is extended until YA2027, subject to specific conditions. Parents can claim a maximum of RM8,000 under this relief. Starting from YA2025, only one parent is allowed to claim the SSPN relief for the same child.
Additionally, the SSPN relief can only be claimed on the net deposit amount for the year. This means that any withdrawals made within the same year must be deducted from the total deposits made that year. However, withdrawals made specifically for the child’s higher education are excluded from this deduction.
These conditions aim to prevent taxpayers from overclaiming the SSPN relief.
PRS, Sports and EV Tax Breaks Not Overlooked
Private Retire Schemes (PRS)
The period of the Private Retire Schemes relief has been extended until YA2030.
Sport Equipment And Activities Relief
Expand the scope of sport equipment and activities relief for parents.
Expenses For Electric Vehicle (EV)
The government has been paying close attention to Malaysia’s environment by promoting green technologies in daily life. Electric vehicles are among the green technologies closely related to our everyday activities and can benefit the environment. To encourage the public to adopt green technologies, tax relief for electric vehicles has been expanded to include the purchase of food waste compost machines for household use. This relief is effective from YA 2025 to YA 2027.
Stay Informed on Your Personal Tax Reliefs in 2025
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