Exclusive Guide!

The Complete Guide To Personal Income Tax In Malaysia For 2023

All you need to know for filing your personal income tax in Malaysia by April 30 this year.

Chapter 5

Tax Rate: Find Out Which Taxable Income Band You Are In

Malaysia income tax rate

Image source: pexels.com

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 IncomeCalculations (RM)Rate %Tax(RM)
0 - 5,000On the First 2,50000
5,001 - 20,000On the First 5,00010
Next 15,000150
20,001 - 35,000On the First 20,0003150
Next 15,000450
35,001 - 50,000On the First 35,0008600
Next 15,0001200
50,001 - 70,000On the First 50,000131,800
Next 20,0002,600
70,001 - 100,000On the First 70,000214,400
Next 30,0006,300
100,001 - 250,000On the First 100,0002410,700
Next 150,00036,000
250,001 - 400,000On the First 250,00024.546,700
Next 150,00036,750
400,001 - 600,000On the First 400,0002583,450
Next 200,00050,000
600,001 - 1,000,000On the First 600,00026133,450
Next 400,000104,000
Exceeding 1,000,000On the First 1,000,00028237,650
Next 1,000,000280,000
Exceeding 2,000,000On the First 2,000,00030517,450
Next ringgit---

Source: LHDN

Compare all the options available to find your best

Here’s an example on how to calculate your tax based on the personal income tax rate above:

Chargeable income: RM65,850

First RM5,000
Next RM15,000
Next RM15,000
Next RM15,000
Next RM15,850
Total chargeable income: RM65,850
Total tax: RM3,860.50

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!

‹ Previous Next: Here's How A Tax Rebate Can Help You Reduce Your Tax Further

Leave your comment