Malaysia Income Tax Rates and Personal Allowances in 2021

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The Income tax rates and personal allowances in Malaysia are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Malaysia Tax Calculator 2021.

Malaysia Residents Income Tax Tables in 2021: Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
0%Income from RM 0.000.00to RM 5,000.00
1%Income from RM 5,000.01 to RM 20,000.00
3%Income from RM 20,000.01 to RM 35,000.00
8%Income from RM 35,000.01 to RM 50,000.00
14%Income from RM 50,000.01 to RM 70,000.00
21%Income from RM 70,000.01 to RM 100,000.00
24%Income from RM 100,000.01 to RM 250,000.00
24.5%Income from RM 250,000.01 to RM 400,000.00
25%Income from RM 400,000.01 to RM 600,000.00
26%Income from RM 600,000.01 to RM 1,000,000.00
28%Income from RM 1,000,000.01 to RM 2,000,000.00
30%Income from RM 2,000,000.01 and above
Malaysia Non-Residents Income Tax Tables in 2021: Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
30%Flat rate on all taxable income

Income Tax in Malaysia in 2021

Taxes, including personal income tax, expenses and limitations are reviewed by the Government in Malaysia periodically and typically updated each year. Not that not all tax rates and thresholds in Malaysia change annually, alterations to tax policy to support strategic economic growth in Malaysia mean that the certain areas may be focused on to provide specific tax relief in Malaysia or support growth in certain areas (overseas invstment in Malaysia for example may mean reduced non-resident income tax rates in Malaysia for a period).

When tax policy in Malaysia changes, the resultant tax tables also change. Tax tables in Malaysia are simply a list of the relevent tax rates, fixed amounts and / or threholds used in the computation of tax in Malaysia, the Malaysia tax tables also include specific notes and guidance on the validity of scenarios (for example, qualifying criterea for specific tax relief / allowances) and notes of the calculation of phaseout of specific tax elements within each taxation group (dividends and corporation tax thresholds in Malaysia for example).

Malaysia Tax Tables may also be referred to as Malaysia Tax Slabs, Malaysia personal allowances and tax thresholds or Malaysia business tax rates. They all refer to the tax tables, whether in whole or as specific sections/categories of the tax tables therein. In the section, we publish all 2021 tax rates and thresholds used within the 2021 Malaysia Salary Calculator. This means that if you are aware of a 2021 tax exemption or 2021 tax allowance in Malaysia that you are entitled too BUT it isn't listed here, that we don't allow for it in this version of the Malaysia Salary Calculator. This is simply because we updated our tax calculators based on user feedback, we tailor the Malaysia Salary Calculator to suit our users needs. Our aim is to keep tax calculations in Malaysia simple, we achieve this my making the Malaysia tax calculators relevent to our community's needs, this includes you. So, if you would like a new 2021 tax rates, allowance or threshold adding (or perhaps updating), or if you notice an error in our 2021 tax calculations, simply contact us and we will adjust the tool.

Choose a specific income tax year to see the Malaysia income tax rates and personal allowances used in the associated income tax calculator for the same tax year.