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Budget 2027 Tax Calculator Malaysia

See how much your income tax changes under the new rates and RM12,000 individual relief proposed in Budget 2027, compared with YA2026.

Budget 2027 proposals (tabled 9 October 2026). The new rates and relief apply from YA2027 and become law only when the Finance Bill 2027 is passed.

A yearly total, such as a bonus or taxable allowances.

For example life insurance, lifestyle, medical, children. Leave out the individual relief (RM9,000 → RM12,000) and EPF.

Annual income: RM96,000.00

Annual tax saving (YA2027)

RM670.00

Chargeable income (YA2026)RM83,000.00
Tax payable (YA2026)RM6,170.00
Chargeable income (YA2027 proposed)RM80,000.00
Tax payable (YA2027 proposed)RM5,500.00
Saving from lower ratesRM130.00
Saving from RM12,000 individual reliefRM540.00
Annual tax changeRM670.00
Monthly tax changeRM55.83

About RM55.83 more in your pocket a month.

YA2026 vs YA2027 (proposed)
YA2026YA2027
Individual reliefRM9,000.00RM12,000.00
Chargeable incomeRM83,000.00RM80,000.00
Top rate you pay19%18%
Tax payableRM6,170.00RM5,500.00
Effective rate6.43%5.73%

Assumptions

  • Resident individual with employment income; non-residents pay a flat rate instead.
  • YA2027 uses the bands and RM12,000 individual relief proposed in the Budget 2027 tax-measures annex, which become law only when the Finance Bill 2027 is passed.
  • EPF relief is capped at RM4,000; other reliefs are assumed the same in both years.
  • The RM400 rebate for chargeable income up to RM35,000 is applied in both years; spouse rebate and zakat are not included.
  • Monthly PCB from January 2027 follows LHDN's 2027 schedule once published, so payslips may change later than this estimate suggests.

This calculator provides estimates only. KiraSmart is not financial advice. Please verify with official sources or professionals before making decisions. Read full disclaimer

Information last reviewed: 2026-10-11 · Result type: official-rate implementation

Frequently Asked Questions

When do the Budget 2027 income tax changes start?
From year of assessment 2027, which is income earned from 1 January 2027 and filed in 2028. The YA2026 return you file in 2027 still uses the current rates and the RM9,000 individual relief. Monthly PCB changes only after LHDN publishes its 2027 schedule, and every change becomes law only when Parliament passes the Finance Bill 2027.
How much tax will I save under Budget 2027?
It depends on your chargeable income. With only the individual relief and RM4,000 of EPF relief, the saving is about RM330 a year at RM70,000 of chargeable income, RM840 at RM100,000 and RM1,520 at RM150,000. Below RM70,000 the saving comes only from the higher RM12,000 relief. The Ministry of Finance estimates up to RM1,600 more disposable income for about five million taxpayers.
Will anyone pay more tax?
Yes, people with very high incomes. The 30% top rate will start at RM1 million of chargeable income instead of RM2 million. The saving shrinks above RM1 million and turns into extra tax at about RM1,085,000 of chargeable income; above RM2 million the tax is RM18,300 a year higher.
Are these figures official?
They are transcribed from the Ministry of Finance's Budget 2027 tax-measures annex, tabled on 9 October 2026. They are proposals until the Finance Bill 2027 is passed, and this calculator will be updated if the final law differs. KiraSmart is independent and not affiliated with the Ministry of Finance or LHDN.

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Salary Calculator Malaysia →Stamp Duty Calculator Malaysia →Detailed LHDN Income Tax Optimiser →
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What Budget 2027 changes for your money

A summary of the measures that touch households, from the Ministry of Finance's speech and tax-measures annex. Tax measures stay proposals until the Finance Bill 2027 is passed.

ProposedFrom YA2027 (income earned in 2027, filed in 2028)

Lower income tax for middle earners, higher above RM1 million

Resident rates fall one point: chargeable income from RM70,001 to RM100,000 is taxed at 18% (was 19%) and a new RM100,001 to RM150,000 band is taxed at 24% (was 25%). RM150,001 to RM400,000 stays at 25%. The 28% band now ends at RM1 million, and income above RM1 million is taxed at 30% (previously only above RM2 million). So total tax rises for chargeable income above about RM1,085,000, by up to RM18,300 a year.

ProposedFrom YA2027

Individual relief rises to RM12,000

The automatic individual and dependent relatives relief rises from RM9,000 to RM12,000, its first change since YA2010.

ProposedFrom YA2027

Wider tax reliefs

Medical relief becomes 'health wellbeing', still capped at RM10,000, and adds postnatal care up to RM3,000 and breastfeeding equipment paid by you or your spouse up to RM1,000. Parents' and grandparents' care covers all care costs, not only medical, without a doctor's certification (cap unchanged at RM8,000). Education relief stays at RM7,000 but covers any recognised field from certificate to PhD, TVET upskilling for you or your spouse up to RM3,000, and up to RM2,000 for non-work courses or children's STEM, arts, language or religious classes and tuition. Lifestyle relief (RM2,500) adds AI subscriptions, pet adoption from registered shelters and vet vaccination or sterilisation. Sports relief (RM1,000) adds sports shoes up to RM300. The RM1,000 tourism relief is extended to YA2027. PERKESO relief covers mandatory Lindung Kendiri contributions, with up to RM150 more for voluntary Lindung 24 Jam and Lindung Kendiri.

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ProposedSPAs signed 1 January 2027 to 31 December 2030

First-home stamp duty: full up to RM500,000, partial up to RM750,000

Malaysian first-time buyers pay no stamp duty on the transfer or the loan agreement for homes up to RM500,000. For homes above RM500,000 up to RM750,000, the first RM500,000 is fully exempt and the rest is 50% exempt. Homes above RM750,000 get no exemption.

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AnnouncedFrom June 2027

Minimum wage rises to RM2,000

The minimum wage rises from RM1,700 to RM2,000 a month from June 2027. MSMEs with sales below RM50 million are exempt. A RM2,500 minimum for semi-skilled jobs and graduates was also announced, without a date.

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AnnouncedDuring 2027

PTPTN repayment relief for low earners

In 2027, borrowers earning up to RM2,500 a month can defer repayment, borrowers earning RM2,500 to RM3,000 pay a minimum of RM50 a month, and borrowers with no arrears who repay regularly get a 10% discount. Employers who repay PTPTN for staff from 2027 to 2028 get a tax deduction.

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AnnouncedDuring 2027

STR and SARA: RM16 billion

STR recipients receive SARA of up to RM150 a month (up to RM1,800 a year), reaching up to 9 million people. Adults aged 18 and above who do not receive STR get SARA MADANI of RM100 twice: before Aidilfitri and ahead of Merdeka's seventieth anniversary. SARA can now also be spent on fresh produce at 216 FAMA farmers' markets.

AnnouncedAnnounced; dates to be set by KWSP

EPF: auto-enrolment at 18, i-Emas monthly payouts, gig-worker matching

Every citizen will be registered as an EPF member automatically at 18. Members reaching 55 or 60 can choose the i-Emas scheme for monthly withdrawals while the balance keeps earning dividends. E-hailing and p-hailing drivers get EPF matching of up to RM600 a year (RM6,000 lifetime). Members under 55 can pay MediAsas health plan premiums from Akaun Sejahtera.

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ProposedFrom 1 January 2027

Lower service tax on elderly care

Service tax on elderly care services falls from 8% to 6% from 1 January 2027, with care fees of up to RM96,000 a year fully exempt.

ProposedFrom YA2027

SME income tax cut by one point

For MSMEs (paid-up capital up to RM2.5 million and sales up to RM50 million), the first RM150,000 of chargeable income is taxed at 14% (was 15%) and RM150,001 to RM600,000 at 16% (was 17%). Above RM600,000 stays at 24%.

ProposedFrom 1 January 2027

Other stamp duty changes

Opening a savings or current account is fully exempt from stamp duty from 1 January 2027. Loan agreements through peer-to-peer financing platforms pay only RM10 from 2027 to 2030. Rescue contractors and original buyers of abandoned housing projects get a full exemption on loan agreements and transfers from 2027 to 2030.

AnnouncedAnnounced; scheme details to follow

Up to RM200 rebate on energy-efficient appliances

Under NUR MADANI, buyers of energy-efficient air-conditioners and refrigerators get a rebate of up to RM200.

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Sources: Budget 2027 speech · Tax-measures annex (Ministry of Finance Malaysia). KiraSmart is not affiliated with any government agency.