# Malaysia Personal Income Tax Rates — YA2023 to YA2026

> Every individual income tax band, rate and cumulative tax figure by year of assessment, with the rebates, the non-resident flat rate and the dividend tax layer.

- Category: taxation
- Language: en
- Status: published
- Updated: 2026-07-20
- Canonical: https://negaraku.md/en/taxation/personal-tax-rates

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Rates apply to **chargeable income** — gross income less allowable expenses,
less every relief you qualify for. Nobody is taxed on salary.

## Resident individual rates, YA2023 to YA2026

LHDN captions this table **Tahun Taksiran 2023, 2024 & 2025**. Budget 2026
announced no change to the bands, so the same scale carries into YA2026.

| Chargeable income (RM) | On the first (RM) | Tax on that (RM) | On the next (RM) | Rate on the excess |
| --- | --- | --- | --- | --- |
| 0 – 5,000 | 5,000 | 0 | — | 0% |
| 5,001 – 20,000 | 5,000 | 0 | 15,000 | 1% |
| 20,001 – 35,000 | 20,000 | 150 | 15,000 | 3% |
| 35,001 – 50,000 | 35,000 | 600 | 15,000 | 6% |
| 50,001 – 70,000 | 50,000 | 1,500 | 20,000 | 11% |
| 70,001 – 100,000 | 70,000 | 3,700 | 30,000 | 19% |
| 100,001 – 400,000 | 100,000 | 9,400 | 300,000 | 25% |
| 400,001 – 600,000 | 400,000 | 84,400 | 200,000 | 26% |
| 600,001 – 2,000,000 | 600,000 | 136,400 | 1,400,000 | 28% |
| Above 2,000,000 | 2,000,000 | 528,400 | every further ringgit | 30% |

Statutory source: Income Tax Act 1967, Schedule 1 Part I paragraph 1.

## Resident individual rates, YA2021 and YA2022

| Chargeable income (RM) | On the first (RM) | Tax on that (RM) | On the next (RM) | Rate on the excess |
| --- | --- | --- | --- | --- |
| 0 – 5,000 | 5,000 | 0 | — | 0% |
| 5,001 – 20,000 | 5,000 | 0 | 15,000 | 1% |
| 20,001 – 35,000 | 20,000 | 150 | 15,000 | 3% |
| 35,001 – 50,000 | 35,000 | 600 | 15,000 | 8% |
| 50,001 – 70,000 | 50,000 | 1,800 | 20,000 | 13% |
| 70,001 – 100,000 | 70,000 | 4,400 | 30,000 | 21% |
| 100,001 – 250,000 | 100,000 | 10,700 | 150,000 | 24% |
| 250,001 – 400,000 | 250,000 | 46,700 | 150,000 | 24.5% |
| 400,001 – 600,000 | 400,000 | 83,450 | 200,000 | 25% |
| 600,001 – 1,000,000 | 600,000 | 133,450 | 400,000 | 26% |
| 1,000,001 – 2,000,000 | 1,000,000 | 237,450 | 1,000,000 | 28% |
| Above 2,000,000 | 2,000,000 | 517,450 | every further ringgit | 30% |

YA2020 differs from this only in the 50,001–70,000 band (14% rather than 13%)
and the cumulative figures that follow from it. The YA2023 revision cut the
35,001–100,000 middle bands and raised 100,001–1,000,000.

## Non-resident individual rate

| Basis | Rate |
| --- | --- |
| Chargeable income of a non-resident individual | **30% flat**, Schedule 1 Part I para 1A |
| Non-resident public entertainer | 15% of gross, Schedule 1 Part II item 3 |
| Non-resident s.4(f) gains or profits | 10% of gross, Schedule 1 Part XIII |
| Resident knowledge worker in a specified region | 15%, Schedule 1 Part XIV |
| Approved Returning Expert Programme individual | 15%, Schedule 1 Part XV |

A non-resident gets no personal relief under s.46 and no rebate under s.6A —
both are written for an individual **resident for the basis year**.

## The dividend layer, from YA2025

| Item | Position |
| --- | --- |
| Charge | 2% on individual dividend income exceeding RM100,000 |
| Authority | Income Tax Act 1967, Schedule 1 Part XXII |
| Rules | P.U.(A) 148/2025, gazetted 7 May 2025 |
| First year of assessment | YA2025 |

This sits on top of the Part I scale; it is not a replacement for it.

## Rebates

A rebate reduces **tax**, not income, and is applied before any s.110 set-off.

| Rebate | Amount | Condition | Section |
| --- | --- | --- | --- |
| Individual | RM400 | Allowed the s.46(1)(a) deduction and chargeable income does not exceed RM35,000 | s.6A(2)(a) |
| Spouse | RM400 | Allowed a deduction under s.47(1) or s.47(2), same RM35,000 ceiling | s.6A(2)(b) |
| Wife assessed with s.45A deduction | RM400 | Her chargeable income does not exceed RM35,000 | s.6A(2)(c) |
| Zakat or fitrah | Amount paid | Capped at the tax charged for that year | s.6A(3) |
| Departure levy, umrah or other pilgrimage | RM8 economy ASEAN, RM20 economy non-ASEAN, RM50 non-economy ASEAN, RM150 non-economy non-ASEAN | Maximum two trips; **hajj is excluded** | s.6A(2A), s.6A(2B) |

The RM35,000 ceiling is on **chargeable income**, not gross income. Where
Schedule 1 Part XIV or XV applies, s.6A(2) requires that RM35,000 to be tested
against chargeable income from all sources.

The foreign worker levy rebate has not applied since year of assessment 2011.

## Common mistakes

- **Applying the marginal rate to the whole income.** The scale is stepped.
  RM120,000 of chargeable income attracts RM9,400 plus 25% of RM20,000, not
  25% of RM120,000.
- **Reading the 2022 table for a 2025 return.** LHDN keeps every historical
  table on the same page under collapsed headings, and the YA2022 middle bands
  are visibly higher. Check the caption before copying a row.
- **Treating zakat as a relief.** It is a rebate under s.6A(3), capped at the
  tax charged — a taxpayer with no tax gets nothing back.
- **Assuming a foreigner pays 30%.** The 30% flat rate follows non-residence
  under s.7(1), which many expatriates fail only in their arrival year.
- **Expecting the RM400 rebate at RM40,000 of salary.** After the RM9,000
  individual relief and EPF, chargeable income often lands under RM35,000 and
  the rebate does apply — but the test is run on the final chargeable figure,
  never on the payslip.

## What's next

Work out the reliefs that determine which band you land in, then confirm which
return form and deadline apply to you.

## Sources

- Kadar Cukai — Individu — https://www.hasil.gov.my/individu/kadar-cukai/ (Lembaga Hasil Dalam Negeri Malaysia)
- Rebat — Individu — https://www.hasil.gov.my/individu/rebat/ (Lembaga Hasil Dalam Negeri Malaysia)
- Income Tax Act 1967 (Act 53), reprint of 21 May 2024 — Schedule 1 and s.6A — https://www.hasil.gov.my/wp-content/uploads/20240521-akta-cukai-pendapatan-1967-akta-53.pdf (Attorney General's Chambers)

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