Income Tax Calculator Malaysia
Find out how much your salary is after tax
Salary rate
Withholding
Salary RM 140,000
Tax - RM 17,180
Employment Insurance - RM 95
EPF - RM 15,477
tax_calculator.withholding_box.social_security_organization_contribution - RM 237
Total tax - RM 32,989
Net pay * RM 107,011
Marginal tax rate 35.6%
Average tax rate 23.6%
23.6%Total tax
76.4%
Net payThe Taxberg
RM 107,011
Net pay
RM 19,214
Tax the employer pays
RM 32,989
Tax you pay
Total tax paid
RM 52,203
Did you know your employer also pays tax on your salary? It costs the employer RM 19,214 to pay you RM 140,000. In other words, every time you spend RM 10 of your hard-earned money, RM 3.73 goes to the government.
Real tax rate
32.8%
So, with you and the employer both paying tax, what used to be a 23.6% tax rate now rises to 32.8%, meaning your real tax rate is actually 9.2% higher than what it seemed at first.
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Summary
If you make RM 140,000 a year living in Malaysia, you will be taxed RM 32,989. That means that your net pay will be RM 107,011 per year, or RM 8,918 per month. Your average tax rate is 23.6% and your marginal tax rate is 35.6%. 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 35.6, hence, your net pay will only increase by RM 64.4.
Bonus ExampleA RM 1,000 bonus will generate an extra RM 644 of net incomes. A RM 5,000 bonus will generate an extra RM 3,220 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.