Education is one of the biggest household expenses for many Malaysian families. Budget 2027 recognises this by widening the education and skills training tax relief so that more of what you spend on learning can be claimed.
What changed
The overall education relief stays at RM7,000. What changes is how much it covers. Previously, the relief was limited to specified fields of study, and upskilling or self-enhancement courses were handled under separate provisions. Under Budget 2027, the relief is broadened to:
- All fields of study. Fees for your own certificate, diploma, bachelor’s, master’s or PhD at recognised local institutions or professional bodies now qualify in any field, such as business, law, accounting, engineering, IT, healthcare and the arts, subject to prescribed conditions.
- Children’s tuition. Fees for qualifying courses, classes or tuition in science, technology, engineering and mathematics (STEM), arts, languages and religion.
- Skills training and upskilling. Courses are consolidated into one broader education and skills training relief.
How the sub-limits work
The RM7,000 is a ceiling, and the different categories sit inside it:
| Category | Limit | Who it covers |
|---|---|---|
| Technical and vocational education and training (TVET) | Up to RM3,000 | You or your spouse |
| Other courses and classes unrelated to employment | Up to RM2,000 | You or your spouse |
| Children’s tuition | Up to RM2,000 | Your children |
The RM2,000 for other courses and the RM2,000 for children’s tuition are shared. They are not two separate allowances. All sub-limits together must stay within the overall RM7,000.
Do not confuse it with other education-related reliefs
Several reliefs touch on education, and they are separate:
- Child relief is generally RM2,000 per qualifying child under 18, with different limits for older children in full-time education.
- SSPN education savings relief is up to RM8,000 for qualifying net savings in the National Education Savings Scheme. Budget 2027 does not propose extending it beyond YA 2027.
- Education and skills training relief (this post) is the RM7,000 relief for fees and courses.
Claiming under the right category matters, because limits and conditions differ.
Who benefits most?
- Parents paying for STEM, language, arts or religious classes for their children.
- Working adults studying part-time for a degree or professional qualification in a field that was previously excluded.
- Career changers taking technical or vocational courses.
How much could it save?
Relief reduces your chargeable income, not your tax directly. As an illustration, not an official figure: if you claim RM2,000 in children’s tuition and your top bracket is 18%, the tax saving is about RM360 (RM2,000 × 18%). Your own saving depends on your bracket and on how much of your limit you were already using.
Still to be clarified
The measures are announced proposals, and the finer points are still to come. Questions remain about which institutions and tuition providers count as “qualifying”, what documents will be needed, and the exact start date. The measures are expected to apply from the 2027 year of assessment, but this should be confirmed once the legislation and LHDN guidelines are published.
What to do now
- Keep official receipts and fee invoices. Make sure they show the provider’s name, the student’s name, the course and the amount.
- Check the provider’s status. For degrees and professional qualifications, confirm the institution or body is recognised.
- Plan your claims within the limits. Note how much you have used under TVET, other courses and children’s tuition.
- Wait for LHDN guidance before you finalise your YA 2027 claim.
Speak to AdrianYeo Tax
Education spending can be significant, and so can the tax relief when it is claimed correctly. Our chartered accountants can help you structure your claims and keep the right documents on file.
This article is for general information only and does not constitute tax advice. Measures are based on Budget 2027 announcements and may change when the legislation is finalised. Please consult a tax professional about your specific circumstances.
