How Do I Calculate My Malaysia Tax Refund? (2025 Step-by-Step Guide)

If you’ve ever filed your LHDN income tax and wondered, “Will I get a refund this year?” — you’re not alone.
Every year, thousands of Malaysians discover they’ve overpaid their Monthly Tax Deductions (MTD / PCB) and are due a refund.

This guide walks you through how to calculate your Malaysia tax refund, what affects it, and how to make sure you claim every sen you’re owed.

What Is a Tax Refund in Malaysia?

A tax refund happens when you’ve paid more income tax than your actual liability.
In simple terms — if your MTD (Monthly Tax Deduction) throughout the year exceeds your final tax payable after considering all tax reliefs, rebates, and zakat contributions, LHDN (Lembaga Hasil Dalam Negeri) will return the difference to you.

Common reasons for a refund:

• You claimed additional tax reliefs not reflected in your monthly deductions.
• You changed jobs mid-year and had overlapping PCB deductions.
• You made zakat payments that reduce taxable income.
• You qualified for tax rebates (like spouse or child rebates).

Understanding your tax bracket becomes much simpler when using the Malaysia Income Tax Calculator.

Step 1: Find Out Your Total Annual Income

Start by adding all taxable income you received during the year:

Source	Include in Total?
Monthly salary	Yes
Bonus or commissions	Yes
Allowances (transport, meal)	Usually
Rental income	Yes
Dividends / Business income	Yes
EPF / SOCSO contributions	No

Example:
If you earn RM 6,000 monthly and receive a RM 5,000 bonus:
→ Annual Income = RM 72,000 + RM 5,000 = RM 77,000

Step 2: Deduct Your Tax Reliefs & Rebates

Malaysia allows dozens of personal tax reliefs that lower your chargeable income. These are often the main reason people get refunds.

Category	Maximum Relief (YA 2025)
Individual taxpayer	RM 9,000
EPF + Life Insurance	RM 7,000
SOCSO + EIS	RM 350
Lifestyle (books, gadgets, internet)	RM 2,500
Medical expenses (self, parents)	RM 10,000
Spouse relief	RM 4,000
Child relief	RM 2,000 per child

After subtracting these reliefs, you’ll get your chargeable income.

Example:
RM 77,000 (Total Income) – RM 25,000 (Total Reliefs) = RM 52,000 Chargeable Income

You can explore all relief categories using the Malaysia Tax Relief Calculator to ensure you don’t miss any deductions.

Step 3: Apply Malaysia’s 2025 Income Tax Rates

Next, calculate your tax payable based on the current progressive tax brackets.

Chargeable Income (RM)	Tax Rate	Cumulative Tax (RM)
0 – 5,000	0%	0
5,001 – 20,000	1%	150
20,001 – 35,000	3%	450
35,001 – 50,000	8%	1,200
50,001 – 70,000	13%	2,600
70,001 – 100,000	21%	6,300

Example:
For RM 52,000 → tax payable = approximately RM 2,920

If you’re unsure which bracket applies, try the Malaysia Income Tax Rate Calculator to see your exact chargeable tax.

Step 4: Compare Tax Payable vs. MTD (PCB) Paid

Now, check your EA Form or monthly payslips to find out how much PCB (MTD) tax your employer has already deducted during the year.

Example:

• PCB deducted: RM 300 per month × 12 = RM 3,600
• Tax Payable: RM 2,920
  Refund = RM 3,600 – RM 2,920 = RM 680

So, you’ll be eligible for a RM 680 Malaysia tax refund once you submit your e-Filing.

Formula:
Tax Refund = MTD Paid – Final Tax Payable

You can instantly get this estimate with the Malaysia Tax Refund Calculator — it automatically considers reliefs, PCB, and tax brackets.

Step 5: How and When You’ll Receive Your Refund

Once you file your e-Filing (Form BE or B) on the LHDN e-Filing portal, the refund process begins automatically if:

• You’ve overpaid tax (MTD > Tax Payable)
• You’ve entered a valid bank account number
• You have no outstanding tax balance

Refund Timeline:

Filing Type	Typical Processing Time
e-Filing (online)	30 working days
Manual submission	60–90 days

If your refund takes longer, you can check the status via MyTax Portal or contact LHDN directly.

Step 6: Common Mistakes That Delay Refunds

1. Missing or outdated bank account details.
2. Forgetting to declare all reliefs.
3. Late filing after the April 30 deadline.
4. Outstanding previous-year taxes offsetting your refund.
5. Employer’s PCB report errors.

Before filing, double-check your EA form, bank info, and receipts. A quick review can save weeks of waiting.

How to Maximise Your Malaysia Tax Refund

Here are a few practical ways to ensure you get the biggest refund possible:

• Claim all eligible reliefs — lifestyle, EPF, SOCSO, insurance, and medical.
• Include zakat payments in your declaration — they directly reduce your tax.
• Use the Monthly Tax Deduction Calculator to check if your PCB is too high.
• Double-check bonus tax deductions using the Malaysia Bonus Tax Calculator if you received a year-end bonus.

Even small reliefs can add up to hundreds of ringgit in refunds.

Frequently Asked Questions

1. How long does it take to receive my tax refund in Malaysia?
Usually within 30 working days for e-Filing submissions, assuming no issues with your bank or documents.

2. Can I get a refund if I didn’t file my taxes?
No. LHDN only processes refunds for individuals who have submitted valid tax returns.

3. Does my bonus affect my refund?
Yes — if your bonus was taxed at a flat rate, it can increase your MTD. After including reliefs, you may get part of that back as a refund.

4. Can non-residents get a Malaysia tax refund?
Non-residents can only receive a refund if over-deductions were made under the non-resident tax rate (30%).

5. What if my refund is delayed?
Check your MyTax account or call LHDN. Delays often relate to bank verification or outstanding tax payments.

• Before estimating any refund, it’s important to confirm your total liability by reviewing how to calculate your Malaysia income tax.
• To get a quick overview of your annual position, you can start with the main Malaysia income tax calculator.
• Since refunds depend on the correct tax bands being applied, always cross-check your figures against the Malaysia income tax rate for 2025.
• If you’re employed, reconciling what was deducted during the year is easier when you use the monthly tax deduction (PCB) calculator.
• Overlooked deductions can significantly affect your refund, so make sure you’ve accounted for all eligible claims with the Malaysia tax relief calculator.
• Taxpayers who received bonuses should verify whether excess tax was withheld by checking the Malaysia bonus tax calculator.
• Once all income, deductions, and payments are finalised, you can estimate the exact amount owed back to you using the Malaysia tax refund calculator.