Now that you understand how to derive your chargeable income to file for your 2016 income tax, 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 2015:
| Chargeable Income | Calculations | Rate | Tax |
| RM0 - RM5,000 | On the First RM2,500 | 0% | RM0 |
| RM5,001 - RM20,000 | On the First RM5,000 | | RM0 |
| Next RM15,000 | 1% | RM150 |
| RM20,001 - RM35,000 | On the First RM20,000 | | RM150 |
| Next RM15,000 | 5% | RM750 |
| RM35,001 - RM50,000 | On the First RM35,000 | | RM900 |
| Next RM15,000 | 10% | RM1,500 |
| RM50,001 - RM70,000 | On the First RM50,000 | | RM2,400 |
| Next RM20,000 | 16% | RM3,200 |
| RM70,001 - RM100,000 | On the First RM70,000 | | RM5,600 |
| Next RM30,000 | 21% | RM6,300 |
| RM100,001 - RM250,000 | On the First RM100,000 | | RM11,900 |
| Next RM150,000 | 24% | RM36,000 |
| 250,001 - 400,000 | On the First RM250,000 | | RM47,900 |
| Next RM150,000 | 24.5% | RM36,750 |
| RM400,001 - RM600,000 | On the First RM400,000 | | RM84,650 |
| Next RM200,000 | 25% | RM50,000 |
| RM600,001 - RM1,000,000 | On the First RM600,000 | | RM134,650 |
| Next RM400,000 | 26% | RM104,000 |
| Exceeding 1,000,000 | On the First RM1,000,000 | | RM238,650 |
| Next ringgit | 28% | RM.... |
Here’s how you calculate your tax based on the personal income tax rate above:
Example:
Chargeable income: RM63,850
| Income | Rate | Tax |
| First RM5,000 | 0% | RM0 |
| Next RM15,000 | 1% | RM150 |
| Next RM15,000 | 5% | RM750 |
| Next RM15,000 | 10% | RM1500 |
| Next RM15,850 | 10% | RM3,200 |
| Total chargeable income: RM65,850 | | Total tax: RM5,600 |
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.
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