Income tax calculator Malaysia
Find out how much your salary is after tax
Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 15
Social Security Organization (SOCSO) contribution
- RM 1.20
Employment Insurance System (EIS) contribution
- RM 0.60
Total tax
- RM 1.80
Net pay
*
RM 13.20
Marginal tax rate
19.8%
Average tax rate
12.0%
88.0%
Net pay
12.0%
Total tax
Total tax
Net pay
The Taxberg
RM 13.20
Net pay
RM 5.40
Tax the employer pays
RM 1.80
Tax you pay
Total tax paid
RM 7.20
Did you know your employer also pays tax on your salary? It costs the employer RM 5.40 to pay you RM 15. In other words, every time you spend RM 10 of your hard-earned money, RM 4.80 goes to the government.
Real tax rate
35.3%
So, with you and the employer both paying tax, what used to be a 12% tax rate now rises to 35.3%, meaning your real tax rate is actually 23.3% higher than what it seemed at first.
Summary
If you make RM 15 a year living in Malaysia, you will be taxed RM 1.80. That means that your net pay will be RM 13.20 per year, or RM 1.10 per month. Your average tax rate is 12.0% and your marginal tax rate is 19.8%. 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 19.80, hence, your net pay will only increase by RM 80.20.
Bonus Example
A RM 1,000 bonus will generate an extra RM 802 of net incomes. A RM 5,000 bonus will generate an extra RM 4,010 of net incomes.
NOTE* Deductions are calculated based on the tables of Malaysia, 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.