Income Tax Calculator Malaysia
Find out how much your salary is after tax
Salary rate
Withholding
Salary RM 230,000
Tax - RM 38,780
Employment Insurance - RM 95
EPF - RM 25,358
tax_calculator.withholding_box.social_security_organization_contribution - RM 237
Total tax - RM 64,470
Net pay * RM 165,530
Marginal tax rate 34.4%
Average tax rate 28.0%
28%Total tax
72%
Net payThe Taxberg
RM 165,530
Net pay
RM 30,892
Tax the employer pays
RM 64,470
Tax you pay
Total tax paid
RM 95,362
Did you know your employer also pays tax on your salary? It costs the employer RM 30,892 to pay you RM 230,000. In other words, every time you spend RM 10 of your hard-earned money, RM 4.15 goes to the government.
Real tax rate
36.6%
So, with you and the employer both paying tax, what used to be a 28% tax rate now rises to 36.6%, meaning your real tax rate is actually 8.6% higher than what it seemed at first.
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Summary
If you make RM 230,000 a year living in Malaysia, you will be taxed RM 64,470. That means that your net pay will be RM 165,530 per year, or RM 13,794 per month. Your average tax rate is 28.0% and your marginal tax rate is 34.4%. 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 34.4, hence, your net pay will only increase by RM 65.6.
Bonus ExampleA RM 1,000 bonus will generate an extra RM 656 of net incomes. A RM 5,000 bonus will generate an extra RM 3,280 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.