Income Tax Calculator Malaysia
Find out how much your salary is after tax
Salary rate
Withholding
Salary RM 1,000,000
Tax - RM 234,867
Employment Insurance - RM 95
EPF - RM 110,007
tax_calculator.withholding_box.social_security_organization_contribution - RM 237
Total tax - RM 345,205
Net pay * RM 654,795
Marginal tax rate 38.6%
Average tax rate 34.5%
34.5%Total tax
65.5%
Net payThe Taxberg
RM 654,795
Net pay
RM 130,927
Tax the employer pays
RM 345,205
Tax you pay
Total tax paid
RM 476,132
Did you know your employer also pays tax on your salary? It costs the employer RM 130,927 to pay you RM 1,000,000. In other words, every time you spend RM 10 of your hard-earned money, RM 4.76 goes to the government.
Real tax rate
42.1%
So, with you and the employer both paying tax, what used to be a 34.5% tax rate now rises to 42.1%, meaning your real tax rate is actually 7.6% higher than what it seemed at first.
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Summary
If you make RM 1,000,000 a year living in Malaysia, you will be taxed RM 345,205. That means that your net pay will be RM 654,795 per year, or RM 54,566 per month. Your average tax rate is 34.5% and your marginal tax rate is 38.6%. 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 38.6, hence, your net pay will only increase by RM 61.4.
Bonus ExampleA RM 1,000 bonus will generate an extra RM 614 of net incomes. A RM 5,000 bonus will generate an extra RM 3,070 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.