The individual income tax ranges from 0% to 30%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.
Gross Annual Income | Tax Rate (%) |
---|---|
Up to MYR 5,000 | 0 |
Up to MYR 20,000 | 1% |
Up to MYR 35,000 | 3% |
Up to MYR 50,000 | 8% |
Up to MYR 70,000 | 11% |
Up to MYR 100,000 | 19% |
Up to MYR 250,000 | 24% |
Up to MYR 400,000 | 25% |
Up to MYR 600,000 | 25% |
Up to MYR 1,000,000 | 26% |
Up to MYR 2,000,000 | 28% |
Over 2,000,000 | 30% |
Optional Cost
13th salary: Employers can decide to pay their employees in Malaysia a 13th salary. This is an optional bonus amounting to 1 month salary usually paid in January or December.