Income Tax Calculator Malaysia
Find out how much your salary is after tax
Salary rate
Withholding
Salary RM 1,000
Employment Insurance - RM 3
EPF - RM 133
tax_calculator.withholding_box.social_security_organization_contribution - RM 6
Total tax - RM 142
Net pay * RM 858
Marginal tax rate 14.1%
Average tax rate 14.2%
14.2%Total tax
85.8%
Net payThe Taxberg
RM 858
Net pay
RM 175
Tax the employer pays
RM 142
Tax you pay
Total tax paid
RM 317
Did you know your employer also pays tax on your salary? It costs the employer RM 175 to pay you RM 1,000. In other words, every time you spend RM 10 of your hard-earned money, RM 3.17 goes to the government.
Real tax rate
27%
So, with you and the employer both paying tax, what used to be a 14.2% tax rate now rises to 27%, meaning your real tax rate is actually 12.8% higher than what it seemed at first.
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Summary
If you make RM 1,000 a year living in Malaysia, you will be taxed RM 142. That means that your net pay will be RM 858 per year, or RM 72 per month. Your average tax rate is 14.2% and your marginal tax rate is 14.1%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of RM 100 in your salary will be taxed RM 14.1, hence, your net pay will only increase by RM 85.9.
Bonus ExampleA RM 1,000 bonus will generate an extra RM 859 of net incomes. A RM 5,000 bonus will generate an extra RM 4,295 of net incomes.
NOTE* Withholding is calculated based on the Malaysia tables of MY, income tax. For simplification purposes some variables (such as marital status and others) have been assumed. This document does not represent legal authority and shall be used for approximation purposes only.