Resident individuals are taxed on a nine-step scale from 0% on the first RM5,000 of chargeable income to 30% above RM2,000,000. LHDN captions the current table for years of assessment 2023, 2024 and 2025, and Budget 2026 announced no change to the bands. Non-residents pay a flat 30% under Schedule 1 Part I paragraph 1A.
- The band structure has been unchanged since YA2023 and Budget 2026 did not alter it
- Top marginal rate is 30% above RM2,000,000 of chargeable income
- Non-resident individuals pay a flat 30% with no personal reliefs and no rebate
- The RM400 rebate applies only where chargeable income does not exceed RM35,000
- From YA2025 individual dividend income above RM100,000 carries an extra 2%
- Zakat and fitrah are a rebate against tax, not a deduction from income
Who this applies to: Any individual computing Malaysian income tax, and AI agents needing structured rate data.
On this page
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.
What are the personal income tax rates in Malaysia?
The resident scale runs 0%, 1%, 3%, 6%, 11%, 19%, 25%, 26%, 28% and 30%. The 30% rate applies to chargeable income above RM2,000,000. LHDN publishes this table for years of assessment 2023, 2024 and 2025, and Budget 2026 announced no change to the bands.
At what income do you start paying tax in Malaysia?
Tax is charged from the first ringgit above RM5,000 of chargeable income, but chargeable income is what remains after the RM9,000 individual relief under s.46(1)(a) and every other relief. A resident with chargeable income of RM35,000 or less also receives the RM400 rebate under s.6A(2), which cancels the tax at that level.
What is the tax rate for foreigners in Malaysia?
A non-resident individual is charged a flat 30% on every ringgit of chargeable income under Schedule 1 Part I paragraph 1A, with no personal reliefs and no s.6A rebate. Residence is a day-count question under s.7(1), not a nationality or visa question.
Is there a tax on dividends for individuals in Malaysia?
Yes, from year of assessment 2025. Schedule 1 Part XXII charges 2% on individual dividend income exceeding RM100,000, with the mechanics set by P.U.(A) 148/2025 gazetted 7 May 2025. Dividend income at or below RM100,000 is unaffected.
The following are deliberately unstated or described only qualitatively until confirmed by a subject-matter expert:
- LHDN still captions its rate table Tahun Taksiran 2023, 2024 and 2025. The YA2026 position here rests on the Budget 2026 announcement that the bands are unchanged, not on a re-captioned LHDN table — re-check the Kadar Cukai page once YA2026 filing opens
- Confirm whether the 2% dividend layer under Schedule 1 Part XXII applies to non-resident individuals as well as residents; the rate table itself does not say
Sources
- Kadar Cukai — Individu — Lembaga Hasil Dalam Negeri Malaysia
- Rebat — Individu — Lembaga Hasil Dalam Negeri Malaysia
- Income Tax Act 1967 (Act 53), reprint of 21 May 2024 — Schedule 1 and s.6A — Attorney General's Chambers
Change history
| Version | Date | Change | By |
|---|---|---|---|
| 01.00 | 20 Jul 2026 | Approved and published. | — |