Malaysia Income Tax Guide 2026: Brackets, Reliefs, and How to File
Last reviewed: June 2026
Quick Answer
Malaysia income tax applies progressive resident rates from 0% to 30% for 2026, assessed by LHDN on chargeable income after reliefs. Residents earning below the taxable threshold pay nothing, while non-residents face a flat 30% rate. Tax reliefs lower your final bill. Rates are as of 2026 and subject to change.
Malaysia uses a progressive income tax system where you pay a higher rate on each additional band of income. This guide covers who qualifies as a tax resident, the 2026 tax brackets, the reliefs most people claim, how PCB works, and how to file. To see your personal numbers, use the Malaysia income tax calculator.
How Does Malaysia Income Tax Work?
Income tax in Malaysia is calculated on your chargeable income: total income minus allowable deductions and reliefs. Only the income within each bracket is taxed at that bracket's rate. The higher rates apply only to the top slice of income, not to the full amount.
For example, if your chargeable income is MYR 60,000, you pay 0% on the first MYR 5,000, 1% on the next MYR 15,000, 3% on the next MYR 15,000, 8% on the next MYR 15,000, and 13% on the final MYR 10,000. The effective tax rate on that MYR 60,000 is about 5.9%, well below the 13% marginal rate.
The tax year runs from January 1 to December 31. Filing is done the following year, typically between March and April, via the MyTax portal at hasil.gov.my.
Who Counts as a Tax Resident?
Residency is determined by physical presence in Malaysia during the calendar year. You are a tax resident if you are present in Malaysia for 182 days or more in that year, or if a shorter stay is linked to an immediately preceding or following year in which you were present for at least 182 days.
Tax residents pay progressive rates and can claim personal reliefs. Non-residents pay a flat 30% on all Malaysia-source income with no access to personal reliefs. This distinction has a significant impact on tax payable, especially for mid-range incomes where reliefs can cut taxable income by MYR 20,000 or more.
Employment Pass holders and expatriates working in Malaysia are subject to the same residency test. Days spent outside Malaysia for work-related travel do not automatically disqualify you, as long as the linked-period rules are met.
What Are the Malaysia Income Tax Brackets for 2026?
The following rates apply to resident individuals for Year of Assessment 2026 (income earned in calendar year 2025).
| Chargeable Income (MYR) | Rate | Tax on Band |
|---|---|---|
| 0 to 5,000 | 0% | MYR 0 |
| 5,001 to 20,000 | 1% | MYR 150 |
| 20,001 to 35,000 | 3% | MYR 450 |
| 35,001 to 50,000 | 8% | MYR 1,200 |
| 50,001 to 70,000 | 13% | MYR 2,600 |
| 70,001 to 100,000 | 21% | MYR 6,300 |
| 100,001 to 250,000 | 24% | MYR 36,000 |
| 250,001 to 400,000 | 24.5% | MYR 36,750 |
| 400,001 to 600,000 | 25% | MYR 50,000 |
| 600,001 to 1,000,000 | 26% | MYR 104,000 |
| 1,000,001 to 2,000,000 | 28% | MYR 280,000 |
| Above 2,000,000 | 30% | On excess |
Residents with chargeable income at or below MYR 35,000 receive a tax rebate of MYR 400, which can reduce the final tax payable to zero. This means many lower-income earners pay no income tax at all despite having a positive chargeable income figure.
Check your tax instantly. Enter your salary and reliefs into the Malaysia income tax calculator to see your chargeable income, tax payable, PCB monthly estimate, and effective rate.
Key Personal Tax Reliefs
Reliefs reduce chargeable income before the tax rates are applied. Every additional MYR 1,000 in reliefs saves you between MYR 10 and MYR 300 in tax, depending on your bracket. The most commonly claimed reliefs are:
- Individual relief: MYR 9,000 (automatic for all tax residents)
- EPF and life insurance premiums: Up to MYR 7,000 combined
- Lifestyle relief (books, internet, sports equipment, gym memberships): Up to MYR 2,500
- Medical expenses (serious diseases for self, spouse, or child): Up to MYR 10,000
- Education fees (self, for approved courses at recognised institutions): Up to MYR 7,000
- Spouse relief (if spouse has no income): MYR 4,000
- Child relief: MYR 2,000 per child under 18; MYR 8,000 per child aged 18 and above studying full-time
Unlike Singapore's SGD 80,000 combined relief cap, Malaysia's reliefs each have their own individual limit. Maximising each category independently is the approach to take, rather than worrying about a combined ceiling.
How to File via MyTax
LHDN opens e-Filing at mytax.hasil.gov.my between March and April each year. Salaried employees file Form BE. Self-employed individuals and those with business income file Form B. The deadline is typically April 30 for Form BE and June 30 for Form B.
Steps for salaried employees:
- Log in to MyTax using your MyKad number or tax reference number
- Select e-Filing and open Form BE for the relevant assessment year
- Review pre-filled income and PCB data from your employer EA form
- Enter all reliefs you are entitled to claim in Section HE4
- Submit and save the acknowledgement slip
- Pay any tax balance due by April 30 via FPX, JomPAY, or bank transfer
If your PCB deductions throughout the year exceed your actual tax, LHDN will refund the difference. The refund is usually processed within 30 to 90 days after filing and credited directly to your bank account.
Understanding PCB (Monthly Salary Deduction)
PCB stands for Potongan Cukai Berjadual, which translates to Scheduled Tax Deduction. It is the monthly amount your employer deducts from your salary and remits to LHDN on your behalf.
Your employer calculates PCB based on your annual income estimate and applicable reliefs using LHDN's published PCB tables or the e-PCB system. PCB is approximately 1/12 of your estimated annual tax, with adjustments made for bonuses and mid-year salary changes.
PCB is a prepayment, not a final tax assessment. Your actual tax is determined when you file your annual return and declare all reliefs. If more PCB was deducted than your final tax, LHDN refunds the difference. If PCB was insufficient, you pay the balance with your filing.
Frequently Asked Questions
What are the Malaysia income tax brackets for 2026?
Malaysia uses progressive rates: 0% on the first MYR 5,000, 1% on MYR 5,001 to 20,000, 3% on MYR 20,001 to 35,000, 8% on MYR 35,001 to 50,000, 13% on MYR 50,001 to 70,000, 21% on MYR 70,001 to 100,000, 24% on MYR 100,001 to 250,000, and higher rates up to 30% on income above MYR 2 million.
Who is considered a tax resident in Malaysia?
A person who stays in Malaysia for 182 days or more in a calendar year qualifies as a tax resident and pays progressive rates with access to reliefs and rebates. Non-residents pay a flat 30% on all Malaysian-source income without access to personal reliefs.
What personal reliefs are available in Malaysia in 2026?
Key reliefs include the MYR 9,000 individual relief, EPF and life insurance up to a combined MYR 7,000, medical expenses up to MYR 10,000, lifestyle relief up to MYR 2,500, and education fees up to MYR 7,000. Each relief has its own cap and they do not share a combined ceiling.
What is PCB in Malaysia tax?
PCB stands for Potongan Cukai Berjadual, the monthly tax deduction from your salary. Your employer estimates your annual tax and deducts roughly 1/12 each month. If the total PCB matches your actual annual tax liability, no additional payment is needed when you file your return.
Do I need to file a tax return if my employer deducts PCB?
Yes, if your annual income exceeds the taxable threshold. Even with PCB deductions, you must file an annual return via MyTax to claim reliefs, confirm your final tax liability, and receive any refund if your employer overdeducted through PCB.