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Income Tax by Salary in Malaysia (YA 2025)
What income tax actually costs at every common Malaysian salary, from RM3,000 to RM20,000 a month - chargeable income, estimated tax, effective rate and take-home pay, side by side.
| Monthly salary | Annual income | Chargeable income | Estimated tax | Effective rate | Monthly take-home |
|---|---|---|---|---|---|
| RM3,000 | RM 36,000.00 | RM 23,040.00 | RM 0.00 | 0.00% | RM 2,649.00 |
| RM3,500 | RM 42,000.00 | RM 29,000.00 | RM 20.00 | 0.05% | RM 3,088.83 |
| RM4,000 | RM 48,000.00 | RM 35,000.00 | RM 200.00 | 0.42% | RM 3,515.33 |
| RM4,500 | RM 54,000.00 | RM 41,000.00 | RM 960.00 | 1.78% | RM 3,893.50 |
| RM5,000 | RM 60,000.00 | RM 47,000.00 | RM 1,320.00 | 2.20% | RM 4,305.00 |
| RM5,500 | RM 66,000.00 | RM 53,000.00 | RM 1,830.00 | 2.77% | RM 4,704.00 |
| RM6,000 | RM 72,000.00 | RM 59,000.00 | RM 2,490.00 | 3.46% | RM 5,090.50 |
| RM6,500 | RM 78,000.00 | RM 65,000.00 | RM 3,150.00 | 4.04% | RM 5,480.50 |
| RM7,000 | RM 84,000.00 | RM 71,000.00 | RM 3,890.00 | 4.63% | RM 5,863.83 |
| RM8,000 | RM 96,000.00 | RM 83,000.00 | RM 6,170.00 | 6.43% | RM 6,563.83 |
| RM9,000 | RM 108,000.00 | RM 95,000.00 | RM 8,450.00 | 7.82% | RM 7,263.83 |
| RM10,000 | RM 120,000.00 | RM 107,000.00 | RM 11,150.00 | 9.29% | RM 7,928.83 |
| RM12,000 | RM 144,000.00 | RM 131,000.00 | RM 17,150.00 | 11.91% | RM 9,208.83 |
| RM15,000 | RM 180,000.00 | RM 167,000.00 | RM 26,150.00 | 14.53% | RM 11,128.83 |
| RM20,000 | RM 240,000.00 | RM 227,000.00 | RM 41,150.00 | 17.15% | RM 14,328.83 |
Resident individual, YA 2025, claiming standard reliefs only: the RM9,000 individual relief plus mandatory EPF (capped at RM4,000). Take-home is after EPF, SOCSO, EIS and estimated monthly PCB.
How to read this table
Chargeable income is the figure tax is actually calculated on - your annual income minus every relief you claim. It sits well below your gross salary, which is why comparing your salary directly against the tax brackets badly overstates what you owe.
Effective rate is total tax divided by gross income. That is the number that tells you what tax really costs you, and it is always lower - usually far lower - than the bracket your top ringgit falls into.
Why your effective rate is far below your tax bracket
Malaysia taxes income in slices, not all at one rate. Reaching the 19% band does not mean 19% of everything you earn: only the portion of chargeable income sitting inside that band is taxed at 19%, while the ringgits below it are still taxed at 0%, 1%, 3%, 6% and 11%. That is why someone earning RM20,000 a month has a top band of 25% but an effective rate closer to 17%.
The practical consequence: a raise can never leave you worse off. A common worry is that crossing into a higher bracket costs more than the raise is worth. It cannot happen - only the ringgits above the threshold are taxed at the higher rate.
Where income tax actually starts
At around RM3,000 a month, the standard reliefs plus the RM400 rebate typically cancel the bill entirely - the table shows RM0 payable. Tax only becomes a noticeable sum past about RM4,500 a month. This is also why many lower earners see little or no PCB deducted from their payslip during the year.
The RM35,000 rebate threshold is worth watching
If your chargeable income lands at or below RM35,000, you receive a RM400 rebate taken straight off the tax itself - not off your income. Near that line, claiming one extra relief can push you under the threshold and wipe out a bill of a few hundred ringgit outright. If your chargeable income is close to RM35,000, it is the highest-return thing you can check before filing.
What this table does not include
- Extra reliefs. Only the individual and mandatory EPF reliefs are applied here. Lifestyle, insurance, medical, education, spouse and child reliefs all reduce the bill further - see the full relief list.
- Bonuses and allowances. Taxable as well, and not modelled in these rows.
- Non-residents. Anyone in Malaysia under 182 days in the year is taxed at a flat 30% with no reliefs, so none of these figures apply.
- Zakat. Zakat paid offsets tax ringgit-for-ringgit and is not included.
Get the figure for your exact salary
The rows above cover the most common salary points. For your own numbers - including every relief you actually qualify for - use the income tax calculator, or see what lands in your account each month with the take-home pay calculator. If you are about to file, the filing guide walks through LHDN e-Filing step by step.
Sources & last reviewed
Figures on this page were last reviewed on against official Malaysian sources for YA 2025. Always confirm the current figure at the source before acting:
- LHDN (Inland Revenue Board) - resident individual income tax rates
- LHDN - tax reliefs for resident individuals
Reviewed by the KiraDuit editorial team.