Income Tax Calculator Malaysia
Find out how much your salary is after tax
Salary rate
Withholding
Salary RM 250,000
Tax - RM 43,580
Employment Insurance - RM 95
EPF - RM 27,504
tax_calculator.withholding_box.social_security_organization_contribution - RM 237
Total tax - RM 71,416
Net pay * RM 178,584
Marginal tax rate 35.2%
Average tax rate 28.6%
28.6%Total tax
71.4%
Net payThe Taxberg
RM 178,584
Net pay
RM 33,431
Tax the employer pays
RM 71,416
Tax you pay
Total tax paid
RM 104,847
Did you know your employer also pays tax on your salary? It costs the employer RM 33,431 to pay you RM 250,000. In other words, every time you spend RM 10 of your hard-earned money, RM 4.19 goes to the government.
Real tax rate
37%
So, with you and the employer both paying tax, what used to be a 28.6% tax rate now rises to 37%, meaning your real tax rate is actually 8.4% higher than what it seemed at first.
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Summary
If you make RM 250,000 a year living in Malaysia, you will be taxed RM 71,416. That means that your net pay will be RM 178,584 per year, or RM 14,882 per month. Your average tax rate is 28.6% and your marginal tax rate is 35.2%. 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 35.2, hence, your net pay will only increase by RM 64.8.
Bonus ExampleA RM 1,000 bonus will generate an extra RM 648 of net incomes. A RM 5,000 bonus will generate an extra RM 3,240 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.