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Malaysia Budget 2027 Income Tax Calculator

Budget 2027 proposes lower tax rates for middle earners and a higher individual relief of RM12,000. Use this calculator to see your estimated tax for YA2026 and YA2027 side by side, and how much you could save each year and each month.

Budget 2027 Income Tax Calculator

See how the proposed YA2027 tax rates and RM12,000 individual relief compare with YA2026 for a Malaysian tax resident.

Based on the Budget 2027 proposals tabled on 9 October 2026. These changes apply from YA2027 (income earned in 2027) and only become law once the Finance Bill is passed.

Your details

RM
RM
Yearly total, e.g. bonus or taxable allowances.
RM
E.g. life insurance, lifestyle, medical, children. Do not include the individual relief or EPF.
Total annual income: RM 0.00

Your result

Estimated annual tax saving (YA2027) RM 0
YA2026
YA2027
YA2026YA2027 (proposed)
Individual relief
Chargeable income
Top rate you pay
Effective tax rate
Tax payable
Change from lower tax rates
Change from RM12,000 individual relief
Total annual change
Monthly equivalent

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Assumptions
  • Resident individual with employment income. Non-residents are taxed at a flat rate and are not covered here.
  • YA2027 uses the proposed rate bands and RM12,000 individual relief. Other reliefs are assumed to be the same in both years.
  • EPF relief is capped at RM4,000 a year. EPF is calculated at 11% of salary plus bonus.
  • The RM400 rebate for chargeable income up to RM35,000 is applied in both years. Spouse rebate, zakat and other rebates are not included.
  • Monthly PCB deductions follow LHDN's schedule, which may change later than this estimate suggests.
This calculator gives estimates only and is not tax advice. Please consult a qualified tax professional before making decisions.

From the Year of Assessment (YA) 2027, which covers income you earn from 1 January 2027 and file in 2028. The return you file in 2027 is for YA2026, so it still uses the current rates and the RM9,000 individual relief.

Not yet. They are Budget proposals and become law only after Parliament passes the Finance Bill. We will update this calculator if the final law differs.

The individual and dependent relatives relief rises from RM9,000 to RM12,000 from YA2027. Every resident taxpayer gets it automatically.

For resident individuals from YA2027:

  • The rate for chargeable income of RM70,001 to RM100,000 falls from 19% to 18%.
  • The old RM100,001 to RM400,000 band is split. RM100,001 to RM150,000 is taxed at 24%, and RM150,001 to RM400,000 stays at 25%.
  • The 28% band now ends at RM1 million, and income above RM1 million is taxed at 30%. That rate previously applied only above RM2 million.

It depends on your chargeable income. With only the individual relief and RM4,000 of EPF relief, the estimated saving is about RM330 a year at RM70,000 of chargeable income, RM840 at RM100,000 and RM1,520 at RM150,000. Below RM70,000, the saving comes only from the higher RM12,000 relief. Enter your own figures in the calculator for your estimate.

Yes, taxpayers with very high incomes. The 30% rate now starts at RM1 million of chargeable income instead of RM2 million, so total tax rises once income passes about RM1.09 million. At RM2 million the estimated increase is RM18,300 a year.

It is your total taxable income for the year minus your tax reliefs and deductions. Tax is calculated on this figure, not on your gross salary, so claiming every relief you are entitled to lowers your tax.

From YA2027, under the proposals:

  • Health and well-being: Medical treatment relief is renamed and keeps its RM10,000 cap. It adds postnatal care (up to RM3,000) and now includes breastfeeding equipment.
  • Parents and grandparents: Eligible care widens to all types of care, not only medical, and carers no longer need a medical practitioner’s verification.
  • Education and skills training: Education fees and upskilling are merged under a RM7,000 cap. Within it, you can claim up to RM3,000 for TVET upskilling and up to RM2,000 for non-work courses or children’s STEM, arts, language and religious classes.
  • Lifestyle: The RM2,500 cap stays and now covers AI software and application subscriptions, pet adoption from registered shelters, and registered veterinary vaccination or spaying and neutering.
  • Sports: The RM1,000 cap stays and adds sports shoes, capped at RM300.
  • Tourism: The RM1,000 relief for entrance fees is extended for one year to YA2027.

Not necessarily. Monthly PCB follows the schedule that LHDN publishes. Any change may show on your payslip only after LHDN releases its 2027 schedule, so your take-home pay may change later than the calculator’s yearly estimate suggests.

For eligible SMEs (paid-up capital of RM2.5 million or below and annual sales not above RM50 million), the rate on the first RM150,000 of chargeable income falls from 15% to 14% from YA2027. The rate on RM150,001 to RM600,000 falls from 17% to 16%. Above RM600,000 it stays at 24%.

Yes, for Malaysian citizens buying their first residential home under sale and purchase agreements signed from 1 January 2027 to 31 December 2030. There is a full stamp duty exemption on homes up to RM500,000. For homes priced from RM500,001 to RM750,000, the portion above RM500,000 gets a 50% exemption.

The calculator gives estimates only for a Malaysian tax resident with employment income. It does not cover non-residents, business income, spouse rebates or zakat, so it is not tax advice. For planning that fits your own situation, book a consultation with our tax specialists.

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