6 October 2026
Income Tax in Malaysia: What Salary Is Taxable? (YA 2025)
At what salary do you start paying income tax in Malaysia? See the annual tax at each monthly salary for a single employee, worked out from LHDN rates.
Free tool: Income Tax Calculator →
Income tax in Malaysia is not charged on your gross salary. It is charged on your chargeable income, which is your yearly income minus tax reliefs, and the rate rises in bands from 0% to 30%. A lower salary can therefore mean no tax at all.
Tax by monthly salary (single employee, YA 2025)
The table shows the annual income tax for a single Malaysian employee with no children, using only the individual relief and the EPF and SOCSO/EIS reliefs, after the RM400 rebate. Married employees and those with children pay less because they have more reliefs.
| Monthly salary | Chargeable income | Annual tax | Average per month |
|---|---|---|---|
| RM 2,000 | RM 12,192 | RM 0 | RM 0 |
| RM 3,000 | RM 22,788 | RM 0 | RM 0 |
| RM 3,500 | RM 28,706 | RM 11 | RM 1 |
| RM 4,000 | RM 34,664 | RM 190 | RM 16 |
| RM 5,000 | RM 46,650 | RM 1,299 | RM 108 |
| RM 6,000 | RM 58,650 | RM 2,452 | RM 204 |
| RM 8,000 | RM 82,650 | RM 6,104 | RM 509 |
| RM 10,000 | RM 106,650 | RM 11,063 | RM 922 |
| RM 15,000 | RM 166,650 | RM 26,063 | RM 2,172 |
| RM 20,000 | RM 226,650 | RM 41,063 | RM 3,422 |
Why a higher salary does not tax all your income at the top rate
Each rate applies only to the slice of chargeable income inside its band. For example, the first RM5,000 is taxed at 0% and the next RM15,000 at 1%, so earning more only raises the tax on the extra slice, not on everything.
PCB is not the same as your final tax
The PCB (monthly tax deduction) taken from your pay is an instalment. Your final income tax is worked out when you file your return, and any PCB paid above that amount is refunded.
Check your own figure
Enter your annual income and reliefs in the income tax calculator for your exact tax, or use the PCB calculator for the monthly deduction.
Frequently asked questions
At what salary do you start paying income tax in Malaysia?
It depends on your reliefs. In the table above, a single employee with no children and only the standard reliefs pays RM0 tax at RM3,000 a month and starts paying a small amount at about RM3,500. Married employees and those with children start paying at a higher salary.
Is income tax charged on gross salary?
No. It is charged on chargeable income, which is your income minus tax reliefs such as the RM9,000 individual relief and your EPF contributions.
Does a higher salary mean all my income is taxed at a higher rate?
No. Malaysia uses progressive bands, so each rate applies only to the part of your chargeable income that falls inside that band.