Welcome to our Malaysia Income Tax Calculator for the Year of Assessment (YA) 2025. This easy-to-use tool helps individuals estimate their income tax obligations by simply entering a few details such as income, deductions, and applicable tax reliefs.

Whether you’re a salaried employee, a freelancer, or self-employed, our calculator is designed to give you an accurate estimate of the tax you need to pay.

Step-by-Step Guide: How to Use the Malaysia Income Tax Calculator

Step 1: Accessing the Calculator

To begin, simply visit the page where you’ve embedded the Malaysia Income Tax Calculator on your WordPress website. The calculator will be displayed prominently, and you can start entering your information immediately.

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Step 2: Input Your Annual Income

• Field Name: Enter Annual Income (RM)
• What to Enter: Input the total income you earned for the year (in Malaysian Ringgit). This can include your salary, wages, business income, and any other taxable income you’ve received. Example: If your total salary income is RM 80,000 for the year, enter 80,000 into the box. Note: Make sure to enter only numerical values. If you enter any non-numeric characters (e.g., commas, text), the calculator may not work correctly.

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Step 3: Input Your EPF Contribution

• Field Name: EPF Contribution (RM)
• What to Enter: Input the amount you’ve contributed to your Employees Provident Fund (EPF) during the year. EPF contributions are deductible from your taxable income. Example: If you’ve contributed RM 6,000 to EPF, enter 6000 into the box. Note: The EPF amount should include both your employer’s and your personal contribution, if applicable.

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Step 4: Input Your Medical Expenses

• Field Name: Medical Expenses (RM)
• What to Enter: Enter the total medical expenses you incurred for yourself, your spouse, and any dependent children during the year. This may include doctor visits, hospitalization, and medical insurance premiums. Example: If you spent RM 2,000 on medical expenses, input 2000. Note: Medical expenses are deductible, but they must be within the guidelines set by the Inland Revenue Board (LHDN).

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Step 5: Input Your Donations

• Field Name: Donations (RM)
• What to Enter: Input the total amount of donations you made to registered charitable organizations throughout the year. Donations to approved organizations can reduce your taxable income. Example: If you donated RM 1,000 to charity, input 1000. Note: Ensure that the donations are to recognized organizations. Otherwise, they may not qualify for tax relief.

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Step 6: Input the Number of Dependent Children

• Field Name: Number of Children
• What to Enter: Enter the number of children you have who are dependent on you. The number of children impacts the child relief deduction, which helps lower your taxable income. Example: If you have 2 children, input 2. Note: The tax relief for children is a fixed amount for each dependent child, as per the guidelines from the LHDN.

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Step 7: Click the “Calculate Tax” Button

• Button Name: Calculate Tax
• What to Do: Once you’ve entered all the information into the fields, click on the Calculate Tax button. This will trigger the tax calculation process. What Happens:
  • The calculator will process all the information you’ve provided (income, deductions, and reliefs).
  • It will then calculate your taxable income by subtracting the allowable deductions (EPF, medical expenses, donations, child relief) from your total income.
  • Based on the remaining taxable income, the calculator will apply Malaysia’s progressive tax rates and show you the tax payable.

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Step 8: View the Results

Once you’ve clicked the Calculate Tax button, the results will be displayed in the result section below the form. This will include:

1. Estimated Tax Payable:
   • The exact amount of tax you owe for the year, after accounting for all your deductions and reliefs.
   • Example: “RM 2,500” – this is the amount of tax you will need to pay.
2. Tax Breakdown:
   • Taxable Income: This is your income after deductions for EPF, medical expenses, donations, and child reliefs.
     • Example: If your income is RM 80,000, and your total deductions amount to RM 15,000, your taxable income will be RM 65,000.
   • Reliefs and Deductions: This section shows a breakdown of all deductions applied, such as EPF, medical expenses, donations, and child relief.
     • Example: “EPF: RM 6,000, Medical Expenses: RM 2,000, Donations: RM 1,000, Child Relief: RM 4,000 (2 children).”

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Why Use Our Malaysia Income Tax Calculator?

• Accurate Tax Estimates: Our tool calculates your income tax based on the latest tax rates and allows for deductions that reduce your taxable income.
• Simple and User-Friendly: The calculator is designed to be intuitive, making it accessible to anyone, whether you’re new to tax filing or an experienced filer.
• Instant Results: Get immediate, accurate results without any waiting. You can plan ahead for your tax payments easily.
• Mobile-Friendly: The calculator works perfectly on both desktop and mobile devices, making it convenient to use anytime, anywhere.

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Key Tax Rates for 2025

Malaysia follows a progressive tax system, which means the more you earn, the higher your tax rate. Here’s an overview of the tax brackets for residents in 2025:

• 0% tax rate for the first RM 5,000
• 1% tax rate for the next RM 15,000
• 3% tax rate for the next RM 15,000
• 6% tax rate for the next RM 15,000
• 11% tax rate for the next RM 20,000
• 19% tax rate for the next RM 30,000
• 25% tax rate for the next RM 300,000
• 26% tax rate for the next RM 200,000
• 28% tax rate for the next RM 1,400,000
• 30% tax rate for income above RM 2,000,000

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What Are Tax Reliefs?

In Malaysia, you are allowed various tax reliefs to reduce your taxable income. Some of the most common reliefs include:

• EPF Contributions: The amount you contribute to your Employees Provident Fund (EPF) can be deducted from your taxable income.
• Medical Expenses: Tax relief is available for medical expenses related to yourself, your spouse, and children.
• Donations: Donations to approved charities can also reduce your taxable income.
• Child Relief: If you have dependent children, you can claim a tax relief for each child, helping to reduce your tax burden.

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Example

Let’s say your annual income is RM 80,000. You contribute RM 6,000 to EPF, incur RM 2,000 in medical expenses, and donate RM 1,000 to charity. You also have two dependent children.

By entering this information into the calculator, the tool will:

• Subtract the relevant deductions (EPF, medical, donations, and child reliefs) from your income.
• Use the remaining taxable income to calculate the tax payable based on Malaysia’s progressive tax rates.

The result will show the estimated tax payable and a detailed breakdown.

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Disclaimer

This calculator provides an estimate of your income tax liability based on the information you provide. The final tax amount may differ depending on other factors, such as rebates, other reliefs, and special circumstances. For an accurate tax filing, please consult with a certified tax professional or the Inland Revenue Board of Malaysia (LHDN).