Chapter 5
Tax Rate: Find Out Which Taxable Income Band You Are In
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Starting from 0%, the tax rate in Malaysia goes up to 30% for the highest income band.
Based on your chargeable income for 2023, we can calculate how much tax you will be paying for last year’s assessment.
Here are the progressive income tax rates for Year of Assessment 2022:
| Chargeable Income | Calculations (RM) | Rate % | Tax(RM) |
|---|---|---|---|
| 0 - 5,000 | On the First 2,500 | 0 | 0 |
| 5,001 - 20,000 | On the First 5,000 | 1 | 0 |
| Next 15,000 | 150 | ||
| 20,001 - 35,000 | On the First 20,000 | 3 | 150 |
| Next 15,000 | 450 | ||
| 35,001 - 50,000 | On the First 35,000 | 8 | 600 |
| Next 15,000 | 1200 | ||
| 50,001 - 70,000 | On the First 50,000 | 13 | 1,800 |
| Next 20,000 | 2,600 | ||
| 70,001 - 100,000 | On the First 70,000 | 21 | 4,400 |
| Next 30,000 | 6,300 | ||
| 100,001 - 250,000 | On the First 100,000 | 24 | 10,700 |
| Next 150,000 | 36,000 | ||
| 250,001 - 400,000 | On the First 250,000 | 24.5 | 46,700 |
| Next 150,000 | 36,750 | ||
| 400,001 - 600,000 | On the First 400,000 | 25 | 83,450 |
| Next 200,000 | 50,000 | ||
| 600,001 - 1,000,000 | On the First 600,000 | 26 | 133,450 |
| Next 400,000 | 104,000 | ||
| Exceeding 1,000,000 | On the First 1,000,000 | 28 | 237,650 |
| Next 1,000,000 | 280,000 | ||
| Exceeding 2,000,000 | On the First 2,000,000 | 30 | 517,450 |
| Next ringgit | --- |
Source: LHDN
Here’s an example on how to calculate your tax based on the personal income tax rate above:
Chargeable income: RM65,850
You can calculate your taxes based on the formula above, and just make sure your total income in the first column comes up to your total chargeable income.
Too much math for you?
Go on to the Malaysia income tax calculator to calculate how much tax you will have to pay!
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