What is the individual base tax relief for YA 2027 under Budget 2027?

Under Budget 2027, the base individual income tax relief increases from RM9,000 to RM12,000 (+RM3,000 deduction) for all resident taxpayers, providing direct tax savings.

What are the personal income tax rate cuts in Budget 2027?

Personal income tax rates are reduced by 1 percentage point for middle-income brackets: RM70,001–RM100,000 drops from 19% to 18%, and RM100,001–RM150,000 drops from 25% to 24%.

What new tax reliefs are included in Budget 2027?

Budget 2027 expands lifestyle reliefs to include AI software subscriptions and pet care (veterinary vaccines and shelter adoptions), sports shoes under sports relief, and postpartum/confinement care under medical expenses.

Malaysia Personal Income Tax Calculator YA 2026 & YA 2027

Income Details & Compensation

Statutory Employment

Annual Gross Income (Salary, Bonus, Commission, Director Fees)

Total employment income received in calendar year before EPF and tax deductions.

Received Compensation for Loss of Employment

Individual & Dependent Relatives

Base: RM 9,000

Automatic Base Taxpayer Relief

RM 9,000

Disabled Individual (Self) Certified by JKM (+RM 7,000 relief)

Marital Status

Basic Supporting Equipment for Disabled Self, Spouse, Child, or Parent (Max RM 6,000)

Child Reliefs & Family Care

Section 48 LHDN

Child Under 18 Years RM 2,000 per child

Child 18+ (A-Level/Foundation) RM 2,000 per child

Child 18+ (Degree/Higher) RM 8,000 per child

Disabled Child (Basic) RM 8,000 per child

Disabled Child (Higher Edu) +RM 8,000 additional

Childcare / TASKA / TADIKA (Max RM 3,000)

Breastfeeding Equipment (Max RM 1,000)

Net Deposit in SSPN (Max RM 8,000)

Medical & Healthcare Expenses

Combined Medical Caps

Medical Treatment & Care for Parents (Max RM 8,000)

Medical treatment, special needs, and certified carer expenses for parents.

Comprehensive Medical (Serious Disease, Fertility, Dental, Vaccination) (Max RM 10,000)

Covers self, spouse, child: serious illness, dental (RM1k subcap), vaccine (RM1k subcap), full checkup (RM1k subcap).

Care & Assessment for Children with Learning Disabilities (Max RM 10,000)

Lifestyle, Education & Digital

Personal Development

Self Education & Upskilling Fees (Accredited Courses) (Max RM 7,000)

General Lifestyle (Books, Tech Gadgets, Broadband, Gym) (Max RM 2,500)

Additional Sports Equipment, Facilities & Activities (Max RM 1,000)

Insurance, EPF & Social Security

Statutory Deductions

EPF / Approved Provident Fund (Max RM 4,000)

Life Insurance / Family Takaful (Max RM 3,000)

Medical & Education Insurance (Max RM 4,000)

Private Retirement Scheme (PRS) (Max RM 3,000)

SOCSO & EIS Contributions (Max RM 350)

Housing Loan Interest & EV Facilities

Green & Home Reliefs

1st Home Interest (≤ RM500k) (Max RM 7,000)

1st Home Interest (RM500k - RM750k) (Max RM 5,000)

Electric Vehicle (EV) Charging Facilities / Rental (Max RM 2,500)

Zakat & Fitrah

Section 6A Rebates

Zakat & Fitrah Paid to Certified Religious Authorities (RM)

Acts as a direct 1-to-1 tax rebate off calculated gross tax liability.

Tax Summary

Year of Assessment: 2026

Resident Rate

Total Gross Income: RM 0.00

Less Total Reliefs: - RM 9,000.00

Chargeable Income: RM 0.00

Gross Tax Payable: RM 0.00

Tax Rebate (Sec 6A): - RM 0.00

Less Zakat / Fitrah: - RM 0.00

Net Tax Payable (Cukai Kena Dibayar)

RM 0.00

Effective Tax Rate: 0.00%

Need Help with Reliefs?

All relief claims are subject to LHDN statutory limits and official receipt retention for 7 years under Income Tax Act 1967.

Frequently Asked Questions & Tax Planning Guide

Key updates from the Malaysian Inland Revenue Board (LHDN / HASiL) and Budget 2027 announcements.

What is the difference between YA 2026 and YA 2027?

Year of Assessment (YA) 2026 applies to income earned throughout calendar year 2026 with a base individual relief of RM9,000. YA 2027 introduces the Budget 2027 package: an increased base relief of RM12,000, 1% rate reductions on middle-income brackets (18% and 24%), and modernized relief items such as personal AI subscriptions, pet care, sports shoes, and postpartum care.

How does the Reverse Tax Calculator work?

The Reverse Tax Calculator (Accountant Tool) inverts Malaysia's progressive tax bracket function. Enter your target tax payable amount and claimed reliefs, and the engine mathematically solves the exact annual gross income needed to reach that tax liability.

How long should I keep tax relief receipts?

Under Section 82A of the Malaysian Income Tax Act 1967, taxpayers are legally required to retain all supporting documentation (receipts, e-invoices, bank statements, certifications) for a minimum of 7 years from the end of the year the return was filed.

Who is eligible for the Low Income Tax Rebate?

Under Section 6A of the Income Tax Act 1967, any resident taxpayer whose Chargeable Income does not exceed RM35,000 is entitled to an automatic RM400 tax rebate. If an individual claims spouse relief and joint chargeable income is ≤ RM35,000, an additional RM400 rebate is granted.

MsianTax Budget 2027 Ready

LEMBAGA HASIL DALAM NEGERI MALAYSIA

Target Net Tax Payable