Income Tax Calculator

Check how much income tax you’ll pay with the latest tax rates and compare it to what you have paid last year.

This income tax calculator makes standard assumptions to provide an estimate of the tax you have to pay for 2018. Our calculation assumes your salary is the same for 2017 and 2018.

Taxes for Year of Assessment 2018 should be filed by 30 April 2019.
  • 1. Income & Household
  • 2. Tax Deduction
  • 3. Final Details
Annual Income Tax Results
  • Estimate your Gross Annual Income
    (include bonuses and dividends before any deductions)
    RM
    .00
  • Estimate your Rental Income
    (The annual rental income eligible for relief is capped at RM24,000)
    RM
    .00
  • Your marital status
  • How many children do you have?
    (Total children that are still under your responsibilities)
    Please state :
  • How many of them attending college / university?
    Please state :
  • Do you have any disabled family members?

    Disabled children

  • Do you provide for your parents?

Key in the estimated amount that you have paid in Year 2017 for each of the following item.

EDUCATION

  • I pay for my own education
    (Masters or Doctorate level, or any certification related to science, technology, law, accounting, Islamic financing, and vocational fields)
  • Annual education insurance premium for my children
    (The total amount you paid for your child(ren)’s education savings plan(s) this year)
    RM
  • Annual contribution to my children’s SSPN-i account
    (The total contribution you have made in your child(ren)’s SSPN-i account this year. SSPN-i is a savings scheme by the PTPTN to save for higher education)
    RM

INSURANCE & RETIREMENT

  • Annual life insurance premium
    (The total amount you paid for your life insurance plan this year)
    RM
  • Annual medical insurance premium
    (The total amount you paid for your medical insurance plan this year)
    RM
  • Annual PRS contribution
    (The total contribution you made in your Private Retirement Scheme (PRS) account, a voluntary retirement savings scheme, this year)
    RM

MEDICAL EXPENSES

  • Check where applicable

OTHER PURCHASES

  • Have you spent on these items this year?
    (On books, magazines, computing devices, smartphones, sports equipment, and Internet bills)

DONATIONS & ZAKAT

  • Zakat payments this year
    RM
  • Contributions to charity organisations
    RM

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Income Tax Facts In Malaysia You Should Know

Income tax savings require planning and being proactive throughout the assessment year. Even with the lower income tax rates when you file for your income tax next year, it doesn’t hurt to put in a little more effort in planning your expenditure to maximise your tax savings.

You can get these savings by knowing what tax reliefs are available and make a point of planning your purchases.

What's New?

Tax exemption on rental income

To encourage Malaysians to rent out their homes at an affordable rent, the government has decided to give up to 50% tax exemptions for rental income. The exemption is subject to the following conditions:

  • Rental income must not exceed RM2,000 per month for each home
  • The rental must involve a legal tenancy agreement between the owner and the tenant
  • The exemption applies for a maximum of three consecutive years

Tax reliefs and rebates

There are 21 tax reliefs available for individual taxpayers to claim. You just need to be aware of these reliefs and make a point of keeping the receipts when you expend money in these areas. Some of the easiest tax reliefs to leverage are:

  • Complete medical examination. Under this relief, you can claim a maximum of RM500 a year. Why not be on top of your health when you can claim tax for it? There’s no reason why you shouldn’t be proactive in taking care of your health.
  • Medical expenses. If at any point you had to foot the bill for a serious disease that affected, your spouse, or a child, you can claim up to RM6,000.
  • Make the most out of the lifestyle tax relief, which comes up to RM2,500 a year. This includes the purchase of books, journals, magazines and publications, personal computer, laptop, smartphone and tablet, sports equipment including gym membership, as well as broadband subscription. This is the easiest to claim. If you find yourself unable to max out the RM2,500 limit, you can buy a book or even sports equipment as a gift to your friends and family.
  • Breastfeeding equipment. Parents who had to fork out cash for their newborn’s feeding needs can breathe a sigh of relief - as they will be compensated.

Some of the reliefs that are not applicable anymore are:

  • Interest expended in the first three years of a residential property, with the Sales & Purchase Agreement signed between March 10, 2009, and December 31, 2010. This was a sweet perk for first-time homebuyers, but it expired on December 31, 2013. The amount is limited to a whopping RM10,000 a year.
  • A premium on new annuity scheme or additional premium paid on existing annuity scheme from January 1, 2010, ended in Year of Assessment 2012, and will not be reinstated until Year of Assessment 2021. The amount was capped at RM1,000.
  • Items such as personal computer, broadband subscription, books and sports equipment are no longer claimable separately. This brings the total amount of reliefs to RM2,500 from RM1,800 annually, with an additional RM3,000 for personal computer every three years.

Monthly Tax Deduction (MTD)

With the announcement made in Budget 2014, Malaysians no longer need to submit tax returns and can use Monthly Tax Deduction (MTD) as the final tax, starting from tax assessment year 2014.

MTD is a mechanism in which employers deduct monthly tax payments from the employment income of their employees. Employers rely on an employee’s personal data submitted to their Human Resource (HR) department to compute monthly MTDs.

However, in order for the MTD amount to be accurate, and does not require you to file tax when April comes along, you will need to provide more information to your employers.

You will need to submit a Form TP1. It is in this form you should state other reliefs that you are entitled to, to facilitate the computation of MTD. Reliefs that can be included in the form are:

  • Medical treatment, special needs and carer expenses for parents,
  • Basic supporting equipment for use by the disabled employee, spouse or parents,
  • Self-education fees,
  • Medical expenses on serious diseases,
  • Complete medical examination,
  • Purchase of books, magazines and journals,
  • Purchase of personal computer (once every 3 years),
  • Net deposit in Skim Simpanan Pendidikan Nasional (SSPN),
  • Purchase of sports equipment,
  • Alimony payment to ex-wife,
  • Life insurance,
  • Education/medical insurance,
  • Deferred annuity,
  • Interest on housing loan (subject to meeting stipulated conditions), and
  • Zakat payment (only if not deducted through MTD already).

With all the above information provided by the employees, the employer will then remit the correct MTD amount to the Inland Revenue Board (IRB) of Malaysia every month.

Individual taxpayers must meet the following criteria in order to avoid filing for tax again when tax season comes along:

  • Such employee must receive their employment income prescribed under Section 13 of the Income Tax Act 1967;
  • MTD of such employee must be made under the Income Tax (Deduction from Remuneration) Rules 1994; and
  • Such employee must serve under the same employer for a period of 12 months in a calendar year (i.e. January, 1 – December, 31).
  • Such employee’s only source of income is the employment income
  • Such employee has opted out of joint assessment with spouse

However, if you opt to file for your tax, you still do so before the deadline every year.

Joint or separate assessment?

If you are married, there are a few things you need to consider when deciding whether to file for joint or separate assessment with your spouse. Making the right decision will maximise your tax savings for you and loved one.

Choosing the appropriate filing status is a major tax decision for newlyweds. According to Section 45 of Malaysia’s Income Tax Act 1967, all married couples in Malaysia have the right to choose whether to file individual or joint taxes.

As a general rule of thumb, if both spouses are earning high incomes in the year of assessment, it is always recommended to opt for separate assessment to leverage on the tax reliefs and deductibles available.

For couples with child(ren), they can maximise their tax savings through the child relief, if the spouse with the higher income claim for child relief.

Here are the differences between separate and join assessment:

Separate assessment

  • Husband and wife will each file for their own tax assessment.
  • Husband and wife will each be entitled to their own personal relief and other reliefs.
  • The tax-filing spouse shall not be entitled to claim spouse relief of RM3,000 and a further relief of RM3,500 if the non-filing spouse is disabled.
  • Either husband or wife can claim child relief (if applicable); but not both parties.

Joint assessment

  • Election must be made every year in writing by April, 1.
  • Can elect in the name of the husband (i.e. wife’s income is aggregated with husband’s) or wife (i.e. husband’s income is aggregated with wife’s).
  • Personal relief can only be claimed once as both husband and wife are now regarded as single individual.

The best way to find out if you should file jointly or separately with your spouse is to prepare the tax return both ways. Double check your calculations and then look at the net refund or balance due from each method.

If you use e-filing to file for your tax returns, you will be able to see the tax due for each individual and compare it with the joint assessment. This way, you will be able to see which filing status gives you the biggest tax savings.

With our income tax calculator, you can roughly estimate how much tax savings you will be able to make when you file for your tax in 2019. There’s still time for you to carefully plan your purchases to maximise your tax reliefs!

If you need more help with income tax in Malaysia, here are some relevant articles that will clear the air for you!