Zakat on Income 2026: How to Calculate, When to Pay, and Why It’s a Rebate, Not a Relief
Ramai bayar zakat setiap tahun tapi masih keliru satu perkara besar: dalam borang cukai, zakat bukan "pelepasan". Ia rebat ringgit-ke-ringgit, dan bezanya boleh jadi beribu ringgit setahun.
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Nisab and haul, in plain language
Nisab is the wealth threshold before zakat becomes obligatory, pegged to the value of 85 grams of gold. Two things follow that most people miss: there is no single national nisab figure; each state’s zakat body (PPZ-MAIWP for the Federal Territories, LZS for Selangor, and so on) sets and updates its own current number. And that number moves with the gold price; with gold near record levels, the current nisab sits higher than in typical years. Check your state body’s live figure, or let the iMoney zakat calculator carry it for you. Haul is the one-year ownership period; for income zakat, most states accept calculating directly on annual income.
Two common calculation methods
- Gross method: 2.5% × total annual income. Simple, higher figure.
- After-deductions method: subtract basic needs for yourself and dependants (rates set by your state body), then 2.5% on the balance. Closer to actual capacity.
Monthly salary deduction, and what it does to your PCB
You can instruct your employer to make a monthly zakat deduction straight to your state zakat body. The practical win: the deduction is adjusted directly in your monthly tax (PCB), so your take-home improves immediately instead of waiting for next year’s refund. For more information, visit our tax-related articles on our Learning Center.
Rebate vs relief: the part everyone gets wrong
Under section 6A(3) of the Income Tax Act, zakat is a rebate: it cuts your tax payable directly, ringgit for ringgit, up to the amount of your tax. A relief only trims your chargeable income.
Example (illustrative, current resident rates, rounded): Aina, chargeable income RM60,000, tax payable about RM2,600, zakat paid RM3,000.
| If zakat were… | Effect | Final tax |
|---|---|---|
| A relief (the common misreading) | Chargeable income drops to RM57,000; saving is bracket-only: RM3,000 × 11% = RM330 | ~RM2,270 |
| A rebate (the reality) | RM3,000 comes STRAIGHT off the RM2,600 tax, down to zero | RM0 |
The gap in this example: over RM2,200, straight back in pocket. And notice the second lesson in those numbers: the zakat rebate is capped at your tax amount. Aina paid RM3,000 but owed RM2,600, so the rebate stops there; the RM400 excess is not carried forward and not refunded. The zakat itself remains complete as an act of worship; only its tax effect has a ceiling. Use our income tax calculator to get an estimate of how much you need to pay.
Where to pay, and what to keep
Pay to your state’s zakat body: counters, the state’s official portal, salary deduction, or appointed online channels. Keep the official receipt; its number is what you enter during e-Filing to claim the rebate.
Sources: section 6A(3) Income Tax Act 1967 (zakat rebate); 85g-gold nisab methodology and deduction rates per state zakat bodies (PPZ-MAIWP, LZS); salary-deduction mechanics per state bodies and LHDN. Example illustrative at stated figures.
FAQs: Frequently Asked Questions on Zakat 2026
Zakat is a rebate under section 6A(3) of the Income Tax Act, it directly deducts the tax payable ringgit-for-ringgit, not just reduces taxable income like a relief.
Each state sets its own nisab figure through its respective zakat center, and the figure moves according to the current gold price.
Yes, instruct your employer to make monthly zakat deductions to your state zakat center, this will adjust your PCB immediately every month.
