Malaysian Income Tax Explained: Reliefs, e-Filing and How to Pay Less Legally

Every ringgit you legally shelter from income tax is a ringgit that stays in your pocket. For Year of Assessment (YA) 2025, a salaried Malaysian who claims all the reliefs they are entitled to can reduce their chargeable income by RM30,000 or more, potentially dropping an entire tax bracket. This guide explains how the system works, what you can claim, and how to file on the MyTax portal before the deadline.

For a broader look at this topic, visit our tax and government money hub. If you want to understand how borrowing costs connect to your tax position, see our guide on home loan basics in Malaysia.

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How Malaysian income tax works

Malaysia taxes residents on a progressive scale: the more you earn, the higher the rate on the top slice of your income. Critically, moving into a higher bracket does not mean your entire income is taxed at that rate. Only the portion of income within each band is taxed at the band’s rate.

You are a tax resident if you are in Malaysia for at least 182 days in a calendar year. Non-residents pay a flat 30% on Malaysian-sourced income with no reliefs.

Your tax bill is calculated on chargeable income, which is your gross income minus all allowable deductions and reliefs. Bring that number down, and you pay less.

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YA 2025 income tax rates at a glance

The table below is based on LHDN’s published rate schedule (source: hasil.gov.my).

Chargeable Income (RM)	Rate	Tax on This Band (RM)
First 5,000	0%	0
5,001 to 20,000	1%	150
20,001 to 35,000	3%	450
35,001 to 50,000	6%	900
50,001 to 70,000	11%	2,200
70,001 to 100,000	19%	5,700
100,001 to 400,000	25%	up to 75,000
400,001 to 600,000	26%	up to 52,000
600,001 to 2,000,000	28%	up to 392,000
Above 2,000,000	30%	on excess

Tax rebate: If your chargeable income does not exceed RM35,000, you qualify for a RM400 personal rebate and RM400 for a non-working spouse (LHDN, YA 2025). This effectively means many Malaysians in the lower brackets pay zero tax after reliefs and the rebate.

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Income tax reliefs you can claim for YA 2025

A tax relief reduces your chargeable income before tax is calculated. Below is the core list for resident individuals filing for YA 2025. All figures are sourced from LHDN’s official Tax Relief schedule (hasil.gov.my).

Mandatory and automatic

Relief	Amount (RM)
Individual (self)	9,000
Spouse (non-working or income below RM4,000)	4,000
Each qualifying child (under 18, or over 18 in full-time education)	2,000
Disabled individual (self)	6,000 additional
Disabled spouse	5,000 additional
Disabled child	6,000 per child

The RM9,000 individual relief is automatic. You claim the others by ticking the relevant boxes in e-Filing.

Retirement savings: EPF and private schemes

Relief	Amount (RM)
EPF/KWSP employee contributions (mandatory + voluntary including Account 3)	Up to 4,000
Life insurance premiums or takaful contributions	Up to 3,000
Private Retirement Scheme (PRS) contributions	Up to 3,000
Deferred annuity premiums	Shared within PRS/deferred annuity RM3,000 cap

EPF contributions are deducted from your salary automatically. Topping up through voluntary contributions before 31 December can help you reach the RM4,000 ceiling.

Education savings: SSPN

Net deposits (deposits minus withdrawals) into a Tabung SSPN (National Education Savings Scheme, administered by PTPTN) for your child qualify for up to RM8,000 relief. This is separate from other reliefs and can be powerful for parents with young children.

Medical and health

Relief	Amount (RM)
Parents’ medical treatment, dental, and full medical check-up (including for grandparents, YA 2025)	Up to 8,000
Serious disease treatment for self, spouse, or child	Up to 10,000
Full medical check-up for self, spouse, or child	Up to 1,000 (within the 10,000 limit)
Fertility treatment for self or spouse	Within the 10,000 limit
Medical or education insurance/takaful premiums	Up to 3,000

Keep receipts. LHDN may request documentation, and healthcare providers can issue itemised invoices that separate qualifying from non-qualifying expenses.

Lifestyle and technology

Relief	Amount (RM)
Lifestyle: books, magazines, printed newspapers, internet subscriptions, gym memberships, sports equipment	Up to 2,500
Purchase of sports equipment and gym or fitness facility fees	Up to 500 (within lifestyle cap or separate, confirm with LHDN)
Personal computers, smartphones, or tablets (for self, spouse, or child)	Up to 2,500
Domestic travel (hotel stays, entry to tourist attractions)	Up to 1,000
Childcare fees for children up to age 6 (to kindergartens or orphanages)	Up to 3,000 (extended to YA 2027)

Education fees for self

Fees paid to approved institutions for pursuing a diploma or above in technical, vocational, industrial, scientific, or technological fields qualify for up to RM7,000 relief. Law, accounting, Islamic finance, and similar recognized degree programs are included. Refer to LHDN’s approved course list for confirmation.

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How to e-File via MyTax: step by step

Malaysia’s e-Filing deadline for YA 2025 for salaried individuals (Form BE) is 30 April 2026, extended to 15 May 2026 for e-Filing submissions (LHDN announcement, early 2026). Business income earners (Form B) have until 30 June 2026 for e-Filing.

1. Log in to MyTax. Go to mytax.hasil.gov.my. Sign in with your MyKad number and password. If you have never registered, click “First Time Login” and follow the verification process with your MyKad details.

2. Select e-Filing. Under “ezHasil Services”, choose “e-Filing” and then select the appropriate form. Salaried employees with no business income use Form BE. Sole proprietors and partners use Form B.

3. Choose YA 2025. This covers income earned from 1 January to 31 December 2025.

4. Verify pre-filled data. The system pre-fills your employer’s PCB (monthly tax deduction) and EPF data from government records. Check these against your EA form (which your employer must issue by the end of February).

5. Enter your reliefs. Go through each relief category. Only claim what you have receipts or supporting documents for. The system calculates your chargeable income and tax payable in real time.

6. Review and submit. Check the summary page carefully. Once submitted, a confirmation receipt is generated. Save or print it.

7. Pay any balance. If you owe additional tax, pay through FPX (online banking), credit card, or at any bank counter. If you are owed a refund, it is typically credited to your bank account within 30 working days.

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Legal ways to reduce your income tax

1. Maximize EPF voluntary contributions

The EPF’s Voluntary Contribution (i-Saraan for the self-employed, and additional voluntary top-ups via EzHasil or the myEPF app for employees) counts toward the RM4,000 annual EPF relief. Contributing before 31 December locks in the relief for that YA.

2. Invest in a Private Retirement Scheme (PRS)

PRS funds are approved by the Securities Commission of Malaysia. Contributing up to RM3,000 per year generates a tax relief at your marginal rate, while your money grows in a regulated fund. A taxpayer in the 19% bracket saves RM570 in tax on a RM3,000 PRS contribution.

3. Put money into SSPN for your children

If you have children, opening a Tabung SSPN account and depositing up to RM8,000 net each year is one of the largest single-relief categories available. The deposit earns a government-guaranteed minimum dividend, making it a low-risk savings vehicle that also cuts your tax bill.

4. Pay for medical insurance before year-end

Medical and education insurance premiums of up to RM3,000 are relievable. If your policy renewal falls in January, consider asking your insurer whether early payment in December is possible to bring the relief into the current YA.

5. Keep receipts for lifestyle spending you were going to do anyway

Books, broadband bills, gym memberships, and sports equipment all fall under the RM2,500 lifestyle relief. If you buy a new phone or tablet during the year, keep the receipt: it qualifies for an additional RM2,500 technology relief.

6. Check your parents’ medical bills

The RM8,000 parental medical relief now covers grandparents too (from YA 2025). If your parents or grandparents have had dental work, specialist appointments, or hospital stays, collect the receipts and ensure they are in your name or clearly attributable to you as the payer.

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Key takeaways

• Malaysia uses a progressive income tax system. Only the slice of income within each band is taxed at that band’s rate.
• A Malaysian resident automatically receives RM9,000 individual relief before any other deductions.
• The single most impactful reliefs for most salaried workers are EPF (RM4,000), lifestyle (RM2,500), technology (RM2,500), medical insurance (RM3,000), and SSPN (RM8,000 for parents).
• The e-Filing deadline for YA 2025 Form BE is 30 April 2026, extended to 15 May 2026 for online filing. File via mytax.hasil.gov.my.
• All claims must be supported by receipts or official statements. LHDN audits do occur.
• Non-residents are taxed at a flat 30% with no reliefs.

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Frequently asked questions

Q: Do I need to file income tax if my income is below RM34,000? You must register and file once your annual income after EPF deductions exceeds RM34,000, even if no tax is payable after reliefs. LHDN, hasil.gov.my.

Q: What is the difference between a tax relief and a tax rebate? A relief reduces your chargeable income before tax is calculated. A rebate is a direct reduction of the tax amount after it is calculated. The RM400 personal rebate applies only if your chargeable income is RM35,000 or below.

Q: Can I claim EPF relief if I make additional voluntary contributions? Yes. Both mandatory contributions deducted by your employer and additional voluntary contributions (including deposits into EPF Account 3) count toward the RM4,000 EPF relief cap for YA 2025.

Q: What happens if I miss the e-Filing deadline? LHDN can impose a fine of between RM200 and RM20,000 under the Income Tax Act 1967. File on time or contact LHDN promptly if you need more time.

Q: How long does LHDN take to process a tax refund? Refunds for e-Filing are typically processed within 30 working days. Keep your bank account details in MyTax current and ensure the account name matches your tax record exactly.