Income that is not subject to federal income tax (e.g., municipal bond interest, certain benefits)
Enter number of dependent children for tax calculations
Malaysia Salary Tax Calculator - Calculate Your Take-Home Pay
Our free Malaysia salary tax calculator helps you determine exactly how much you'll take home from your annual salary. This calculator accounts for all income tax, EPF (Employees Provident Fund), SOCSO (Social Security Organization), and other deductions to give you an accurate estimate of your net pay.
Simply enter your annual salary and filing status, and our Malaysia salary calculator will instantly show you your gross pay, all taxes, deductions, and your final net salary after all taxes. Our calculator uses the latest 2026 tax brackets and rates from LHDN (Lembaga Hasil Dalam Negeri).
Whether you're planning your budget, negotiating a salary, or just curious about your take-home pay, our Malaysia salary tax calculator provides accurate, up-to-date calculations based on the Progressive Income Tax System.
Malaysia Hourly Wage Calculator - Convert Hourly Rate to Salary
Use our Malaysia hourly calculator to convert your hourly wage to an annual salary and calculate your take-home pay. Perfect for hourly workers, freelancers, and contractors who need to understand their annual tax obligations.
Enter your hourly rate and hours per week, and our Malaysia hourly calculator will show your gross annual income, all tax deductions, and your net hourly rate after taxes. This helps you compare hourly positions with salaried roles and understand your true earning potential.
For example, if you earn RM 28/hour working 40 hours per week, our calculator will show you your annual gross income, all applicable taxes, and your net hourly rate after deductions.
Malaysia Paycheck Calculator - Calculate Your Bi-Weekly or Monthly Pay
Our Malaysia paycheck calculator shows you exactly what will be deducted from each paycheck. Whether you're paid weekly, bi-weekly, semi-monthly, or monthly, this calculator breaks down all deductions including income tax, EPF, SOCSO.
Understanding your paycheck deductions is crucial for budgeting and financial planning. Our Malaysia paycheck calculator helps you see exactly how much MYR you'll receive in each pay period after all taxes and deductions are taken out.
Malaysia has progressive income tax rates (0% to 30%) with a tax-free threshold of RM 5,000. EPF contributions are 11% of salary (employee contribution), and SOCSO provides social security coverage. There are various tax reliefs and deductions available.
Understanding Malaysia Tax System - Comprehensive Guide to LHDN Tax Laws
Malaysia operates under a Progressive Income Tax System administered by LHDN (Lembaga Hasil Dalam Negeri), the Inland Revenue Board of Malaysia. The tax year runs from January 1 to December 31, with tax returns due by April 30 of the following year. Malaysia's tax system includes income tax, mandatory EPF contributions, SOCSO coverage, and various tax reliefs and rebates designed to reduce taxable income.
2026 Malaysia Income Tax Brackets (Chargeable Income):
Tax is calculated on chargeable income, which is your total income minus personal reliefs, deductions, and exemptions. The first RM 5,000 is tax-free.
- 0% - First RM 5,000 (Tax-free threshold)
- 1% - Next RM 15,000 (RM 5,001 to RM 20,000) - Tax: RM 150
- 3% - Next RM 15,000 (RM 20,001 to RM 35,000) - Tax: RM 450
- 8% - Next RM 15,000 (RM 35,001 to RM 50,000) - Tax: RM 1,200
- 14% - Next RM 20,000 (RM 50,001 to RM 70,000) - Tax: RM 2,800
- 21% - Next RM 30,000 (RM 70,001 to RM 100,000) - Tax: RM 6,300
- 24% - Next RM 150,000 (RM 100,001 to RM 250,000) - Tax: RM 36,000
- 24.5% - Next RM 150,000 (RM 250,001 to RM 400,000) - Tax: RM 36,750
- 25% - Next RM 200,000 (RM 400,001 to RM 600,000) - Tax: RM 50,000
- 26% - Next RM 400,000 (RM 600,001 to RM 1,000,000) - Tax: RM 104,000
- 28% - Next RM 1,000,000 (RM 1,000,001 to RM 2,000,000) - Tax: RM 280,000
- 30% - Over RM 2,000,000 - Tax: 30% on excess
Note: These rates apply to chargeable income after all reliefs and deductions. The tax-free threshold of RM 5,000 means the first RM 5,000 of chargeable income is not taxed.
EPF (Employees Provident Fund) - Malaysia's Mandatory Retirement Scheme
EPF contributions are mandatory for all employees in Malaysia under the Employees Provident Fund Act 1991. EPF serves as Malaysia's primary retirement savings vehicle and provides significant tax benefits:
- Employee Contribution: 11% of monthly salary (mandatory deduction from paycheck)
- Employer Contribution: 13% of monthly salary (for employees earning RM 5,000 or less) or 12% (for employees earning above RM 5,000)
- Total Contribution: 24% for lower earners, 23% for higher earners
- Tax Relief: EPF contributions up to RM 4,000 per year are eligible for tax relief under Section 49(1)(c) of the Income Tax Act 1967
- Withdrawal Rules: EPF can be withdrawn at age 55, for housing (Account 2), education, medical expenses, or upon permanent disability
- Dividend Rate: EPF typically pays annual dividends (historically 5-6% per year) on contributions
Important: EPF contributions reduce your taxable income, meaning you pay less income tax. For example, if you contribute RM 4,000 to EPF annually, you save approximately RM 840-1,200 in income tax (depending on your tax bracket).
SOCSO (Social Security Organization) - Employment Injury & Invalidity Coverage
SOCSO provides social security protection for employees in Malaysia, covering employment injuries, invalidity pensions, and survivors' benefits. SOCSO contributions are mandatory for employees earning RM 30 or more per month:
SOCSO Contribution Rates 2026:
- Category 1 (RM 30 - RM 1,500/month): Employee pays 0.5% (RM 0.15 - RM 7.50), Employer pays 1.75%
- Category 2 (RM 1,501 - RM 5,000/month): Employee pays 0.5% (RM 7.51 - RM 25), Employer pays 1.75%
- Category 3 (Above RM 5,000/month): Employee pays RM 25 (capped), Employer pays RM 87.50 (capped)
SOCSO provides coverage for work-related accidents, occupational diseases, invalidity (permanent disability), and death benefits. Contributions are not tax-deductible but provide essential social security protection.
Malaysia Tax Reliefs & Rebates 2026 - Maximize Your Deductions
Malaysia offers extensive tax reliefs that can significantly reduce your taxable income. These reliefs are claimed when filing your annual tax return (Form BE for individuals):
Key Tax Reliefs Available:
- Personal Relief: RM 9,000 (automatic for all taxpayers)
- EPF Contributions: Up to RM 4,000 (Section 49(1)(c))
- Life Insurance Premiums: Up to RM 3,000 (Section 49(1)(c))
- Medical Insurance: Up to RM 3,000 (Section 49(1)(c))
- Medical Expenses (Parents): Up to RM 8,000 (Section 49(1)(d))
- Education Fees (Self): Up to RM 7,000 (Section 49(1)(c))
- Education Fees (Children): Up to RM 8,000 per child (Section 49(1)(c))
- Disabled Individual: RM 6,000 additional relief
- Disabled Spouse/Child: RM 3,500 per disabled dependent
- Spouse Relief: RM 4,000 (if spouse has no income or income below RM 4,000)
- Child Relief: RM 2,000 per child (up to 18 years old or studying full-time)
- Lifestyle Relief: Up to RM 2,500 (for purchase of sports equipment, books, computers, internet subscriptions)
- SSPN (National Education Savings Scheme): Up to RM 8,000
- Private Retirement Scheme (PRS): Up to RM 3,000
Tax Rebate: Taxpayers with chargeable income below RM 35,000 receive a tax rebate of RM 400 (reduces tax payable, not taxable income).
Filing Requirements & Deadlines - LHDN Compliance
Who Must File: All individuals with annual income exceeding RM 34,000 (after EPF deductions) or those with multiple sources of income must file a tax return. Self-employed individuals must file regardless of income level.
- Filing Deadline: April 30 of the following year (e.g., 2024 income must be filed by April 30, 2025)
- Form BE: For individuals with employment income only
- Form B: For individuals with business income or multiple sources
- E-Filing: LHDN encourages online filing through e-Filing system (myTax portal)
- Penalties: Late filing incurs penalties of RM 200-300 plus 10% of tax payable
- Tax Payment: Tax must be paid by April 30 or in installments (CP204 for estimated tax)
Monthly Tax Deduction (MTD/PCB) - Pay-As-You-Earn System
Malaysia operates a Monthly Tax Deduction (MTD) system, also known as Potongan Cukai Bulanan (PCB). Employers are required to deduct income tax from employees' monthly salaries based on LHDN's MTD tables:
- MTD is calculated based on monthly salary, marital status, and number of dependents
- MTD tables are published annually by LHDN and account for personal reliefs
- Employees can apply for reduced MTD if they have additional tax reliefs (Form CP39)
- MTD is a prepayment of annual tax liability - you may receive a refund or owe additional tax when filing your annual return
- Self-employed individuals must make quarterly tax installments (CP204) if estimated tax exceeds RM 2,000
Our Malaysia tax calculator automatically applies the correct tax rates, EPF contributions, SOCSO deductions, and accounts for common tax reliefs to give you an accurate estimate of your take-home pay and annual tax liability. The calculator uses the latest 2026 tax brackets and rates published by LHDN.
Malaysia Tax Authority Resources
Calculation Methodology
Our calculator uses a progressive tax bracket system, applying the marginal tax rates to the portion of income falling within each bracket. Deductions and credits are applied according to the rules of each respective tax authority.
Tax Year Information
All calculations are based on 2026 tax brackets, rates, and rules as published by official tax authorities. Tax brackets are adjusted annually for inflation. We update our calculators regularly to reflect the latest tax law changes.