Individual Income Tax Rates: 0%–30% Bands and How to Calculate

How individual income tax is calculated

Malaysia uses progressive rates for resident individuals: the higher the chargeable income, the higher the rate applied to the top portion. Tax is calculated in bands — each band is charged its own rate, not a single rate on the whole amount.

Resident individual rate schedule (YA 2023–2025)

The table below is the table displayed by HASiL at the review date (2026-11-08), for Years of Assessment 2023, 2024 and 2025:

Chargeable income (RM)	Basic tax	Rate on balance
0 – 5,000	0	0%
5,001 – 20,000	0	1%
20,001 – 35,000	150	3%
35,001 – 50,000	600	8%
50,001 – 70,000	1,800	14%
70,001 – 100,000	4,600	21%
100,001 – 250,000	10,900	24%
250,001 – 400,000	46,900	24.5%
400,001 – 600,000	83,650	25%
600,001 – 1,000,000	133,650	26%
1,000,001 – 2,000,000	237,650	28%
Above 2,000,000	517,650	30%

Example of band-by-band calculation

Suppose your chargeable income is RM70,000:

• First RM5,000: 0% = RM0
• RM5,001 – RM20,000 (RM15,000): 1% = RM150
• RM20,001 – RM35,000 (RM15,000): 3% = RM450
• RM35,001 – RM50,000 (RM15,000): 8% = RM1,200
• RM50,001 – RM70,000 (RM20,000): 14% = RM2,800

Total tax = RM150 + RM450 + RM1,200 + RM2,800 = RM4,600.

This matches the "Basic tax" column of the table for the next band: RM4,600 + 21% on the balance above RM70,000.

RM400 rebate

If chargeable income ≤ RM35,000, you qualify for an RM400 rebate that is deducted directly from the tax calculated (not a relief — distinguish the two). Rebate with spouse: see the zakat tax rebate draft.

Non-residents: flat rate of 30%

Non-resident individuals are charged a flat rate of 30% on chargeable income and are not eligible for personal deductions (personal reliefs). This differs from residents, who use the progressive schedule.

Remember

• This schedule is for resident individuals — do not simply label "resident" as "Malaysian citizen".
• Actual tax depends on your reliefs, rebates and types of income.
• The latest official figures published by HASiL as of this review are YA 2025 — do not publish YA 2026 figures without a source.