Malaysia's resident rates start at 0% on the first RM5,000 of chargeable income and reach 30% only above RM2 million. This calculator applies the standard RM9,000 personal relief, runs your salary through the YA 2026 bands, then takes off the 11% EPF contribution that lands on every payslip.
Income tax and employee contributions, YA 2026 rates.
| Breakdown | Amount |
|---|
Estimates for a single employee with standard allowances, calculated in your browser. Rates checked October 2026. Not tax advice.
The Inland Revenue Board (LHDN) taxes residents in bands: 1% and 3% through the lower bands, 11% between RM50,000 and RM70,000, 19% up to RM100,000, then 25% and 26% before the top rate of 30%. Employers deduct tax each month under the PCB schedule and you square it up in your annual return. The calculator applies the RM9,000 self relief before the bands. Other reliefs stay out, which matters, because Malaysian employees can usually claim quite a few.
The EPF employee contribution is 11% of wages, with no wage cap in practice. It is retirement savings held in your own EPF account, not a tax, but it is the largest single deduction on most payslips. Two smaller schemes, SOCSO and EIS, are not modelled here, and neither is the EPF tax relief of up to RM4,000. With that relief missing from the model, the tax figure comes out higher than what most employees actually pay.
| Taxable income band | Rate |
|---|---|
| Up to RM5,000 | 0% |
| RM5,000 – RM20,000 | 1% |
| RM20,000 – RM35,000 | 3% |
| RM35,000 – RM50,000 | 6% |
| RM50,000 – RM70,000 | 11% |
| RM70,000 – RM100,000 | 19% |
| RM100,000 – RM400,000 | 25% |
| RM400,000 – RM600,000 | 26% |
| RM600,000 – RM2,000,000 | 28% |
| Above RM2,000,000 | 30% |
Bands apply to taxable income — what is left after the personal relief (self) of RM9,000.
| Gross salary | Income tax | Social | Take-home | Effective rate |
|---|---|---|---|---|
| RM102,000 | RM8,070 | RM11,220 | RM82,710 | 18.9% |
| RM204,000 | RM33,150 | RM22,440 | RM148,410 | 27.3% |
| RM407,500 | RM84,025 | RM44,825 | RM278,650 | 31.6% |
| RM815,500 | RM194,220 | RM89,705 | RM531,575 | 34.8% |
On RM204,000 a year, take-home pay in Malaysia is RM148,410 — about RM12,368 a month — after RM33,150 in income tax and RM22,440 in social contributions. Salary levels are the local equivalents of US$25,000 / $50,000 / $100,000 / $200,000 at the ECB reference rate of 28 October 2026, rounded.
| Contribution | Rate | Applies from | Applies up to |
|---|---|---|---|
| EPF (employee) | 11% | First RM0 | No cap |
Employee side only. Employer contributions, where a country charges them, do not come out of your pay and are not in these results.
The same salary under both tax systems, worked through at several income levels.
Compare them →The same salary under both tax systems, worked through at several income levels.
Compare them →The same salary under both tax systems, worked through at several income levels.
Compare them →The same salary under both tax systems, worked through at several income levels.
Compare them →The same salary under both tax systems, worked through at several income levels.
Compare them →The same salary under both tax systems, worked through at several income levels.
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