Malaysia Salary Calculator
Calculate your Take-Home Salary in Malaysia Quickly and Easily
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Take Home Salary Calculator - Malaysia
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Understand what impacts your Take-Home Salary in Malaysia
What is income tax for Malaysia?
In Malaysia, the income tax is known as the Personal Income Tax. The tax rates for resident individuals in Malaysia are progressive, meaning that higher rates are applied to higher income brackets. The tax rates and income brackets are as follows:
- 0% for the first RM5,000 of chargeable income
- 1% for chargeable income between RM5,001 and RM20,000
- 3% for chargeable income between RM20,001 and RM35,000
- 8% for chargeable income between RM35,001 and RM50,000
- 14% for chargeable income between RM50,001 and RM70,000
- 21% for chargeable income between RM70,001 and RM100,000
- 24% for chargeable income between RM100,001 and RM250,000
- 24.5% for chargeable income between RM250,001 and RM400,000
- 25% for chargeable income above RM400,000
How is the income tax calculated in Malaysia?
In Malaysia, the income tax is calculated based on a progressive tax system. The calculation involves the following steps:
- Determine the Total Income: This includes all income earned in Malaysia, such as employment income, business income, rental income, and other taxable earnings.
- Calculate Chargeable Income: Deduct any allowable deductions, exemptions, and tax reliefs from the total income. The resulting amount is the chargeable income.
- Apply the Tax Rates: The chargeable income is subject to progressive tax rates. Apply the respective tax rates based on the income tax brackets provided by the Inland Revenue Board of Malaysia (LHDN).
- Calculate Tax Payable: Multiply the chargeable income by the applicable tax rate and deduct any applicable tax reliefs. The resulting amount is the income tax payable.
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