Malaysia Income Tax Calculator
CALCULATING
Results
Salary Before TaxRM 0
Salary After TaxRM 0
Total TaxRM 0
Average Tax Rate0 %
RM = Malaysia Ringgit
CALCULATING
Salary Before TaxRM 0
Income TaxRM 0
Employees’ Provident Fund (EPF)RM 0
Social Security Organisation (SOCSO)RM 0
Employment Insurance System (EIS)RM 0
Low Income RebateRM 0
Total TaxRM 0
Salary After TaxRM 0
Total DeductionsRM 0
Average Tax Rate0 %
Summary
Enter your salary into the calculator above to find out how taxes in Malaysia affect your income. You'll then get your estimated take home pay, a detailed breakdown of your potential tax liability, and a quick summary down here so you can have a better idea of what to expect when planning your budget.
If you make 0 a year living in Malaysia, we estimate that you'll be taxed 0. In almost all cases, your employer will automatically withhold this amount from your paychecks and thus your take home pay should be around 0 per year or 0 per month. Lastly, your average tax rate ends up being around 0 %. Note that this estimate is based only on the most common standard deductions and credits, if any. If you are eligible for additional deductions and credits, your taxes may be lower.
Table of Contents
What is the income tax rate in Malaysia?
The personal income tax rate in Malaysia is progressive and ranges from 0% to 30% depending on your income.
Malaysia Income Tax Brackets and Other Information
For resident taxpayers, the personal income tax system in Malaysia is a progressive tax system. This means that your income is split into multiple brackets where lower brackets are taxed at lower rates and higher brackets are taxed at higher rates. Tax rates range from 0% to 30%.
For 2021 tax year
| Taxable Income (MYR) | Tax Rate |
|---|---|
| First 5,000 | 0% |
| From 5,000 to 20,000 | 1% |
| From 20,000 to 35,000 | 3% |
| From 35,000 to 50,000 | 8% |
| From 50,000 to 70,000 | 13% |
| From 70,000 to 100,000 | 21% |
| From 100,000 to 250,000 | 24% |
| From 250,000 to 400,000 | 24.5% |
| From 400,000 to 600,000 | 25% |
| From 600,000 to 1,000,000 | 26% |
| From 1,000,000 to 2,000,000 | 28% |
| From 2,000,000 onwards | 30% |
For residents, standard deductions exist to help lower your taxable income with some of the most common ones being the personal relief and the lifestyle relief. As far as tax credits go (which help directly lower the tax itself), there is an easily accessible one for those earning under RM 35,000 a year.
Non-residents are taxed at a flat rate of 30% (the highest tax bracket) and are generally ineligible for most deductions or credits.
Social Security in Malaysia
Social security in Malaysia consists of the Employees' Provident Fund (EPF), the Social Security Organization (SOSCO), and the Employment Insurance System (EIS). Participation with all three are mandatory for malaysian citizens and permanent residents with contributions made by both employees and employers.
For the Employees' Provident Fund (EPF), employee contribution rates range from 0% to 9% and vary depending on age and whether you are a malaysian citizen or a permanent resident. For example, malaysian citizens age 60 and over do not have to contribute.
Employee contribution rates to the Social Security Organization (SOSCO), on the other hand, only vary based on age with those under 60 contributing 0.5% while incorporating a maximum cap on the applicable income.
For the Employment Insurance System (EIS), employee contribution rates are similarly setup with those under age 60 contributing 0.2% while also incorporating a maximum cap on the applicable income.
Both EPF and SOSCO contributions are tax deductible up to a certain limit.
Resident status and income tax in Malaysia
Both resident and non-resident taxpayers are taxed only on income accrued in or derived from Malaysia.
For the most part, individuals who stay in Malaysia for at least 182 days or more in a calendar year are considered residents for tax purposes.
Sources:
Quick Facts about Malaysia
- Main Language(s):Malay
- Currency:Malaysia Ringgit (RM)
- Capital:Kuala Lumpur
- Total Population:32,730,000
- Most Populous City:Kuala Lumpur
- Time Zone(s):UTC+8
- International Phone Code:+60
- Driving Side:Left
- Climate:Tropical, hot, humid, rainy
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Income Tax Calculator Disclaimer
- Tax situations vary widely and calculations can get very complex. This income tax calculator only provides an estimate according to the most common scenarios for salary (standard employment income) that comes from an employer. If you are self-employed, your taxes might differ.
- There may be additional deductions, credits, exemptions, allowances, reliefs, etc depending on many factors. Some factors are about your family such as the number of dependents, children, relatives, parents, etc. Other factors may include mortgage payments, property depreciation, charitible donations, additional voluntary retirement contributions, etc. Whether or not you are handicapped and/or disabled may also sometimes be an additional factor.
- Depending on region and jurisdiction, salary bonuses may be treated and taxed differently from standard salary. Additionally, some cities may have city specific income tax.
- This income tax calculator only estimates income tax. It does not consider other taxes like property tax, self-employment tax, capital gains tax, dividend tax, etc.
- Income tax calculators from other sites may show slightly different numbers due to different deductions/credits being included or they are based on data from a different year.
- Investomatica is not a tax advisor. While we try our best to stay up to date with changes in tax codes, we make no guarantee our income tax calculator will always be accurate. Generally, we review changes once a year. If you notice a major miscalculation or error with our income tax calculator (most likely caused by a typo somewhere), feel free to direct message us on twitter and let us know. However, if you have specific tax questions, please consult a licensed tax professional.
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