Income tax calculator Malaysia
Find out how much your salary is after tax
Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 4,800,016
Employees' Provident Fund (EPF)
- RM 528,026
Social Security Organization (SOCSO) contribution
- RM 237
Employment Insurance System (EIS) contribution
- RM 94.80
Tax
- RM 1,353,555
Total tax
- RM 1,881,913
Net pay
*
RM 2,918,103
Marginal tax rate
41.0%
Average tax rate
39.2%
60.8%
Net pay
39.2%
Total tax
Total tax
Net pay
The Taxberg
RM 2,918,103
Net pay
RM 624,913
Tax the employer pays
RM 1,881,913
Tax you pay
Total tax paid
RM 2,506,826
Did you know your employer also pays tax on your salary? It costs the employer RM 624,913 to pay you RM 4,800,016. In other words, every time you spend RM 10 of your hard-earned money, RM 5.22 goes to the government.
Real tax rate
46.2%
So, with you and the employer both paying tax, what used to be a 39.2% tax rate now rises to 46.2%, meaning your real tax rate is actually 7% higher than what it seemed at first.
Summary
If you make RM 4,800,016 a year living in Malaysia, you will be taxed RM 1,881,913. That means that your net pay will be RM 2,918,103 per year, or RM 243,175 per month. Your average tax rate is 39.2% and your marginal tax rate is 41.0%. 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 41, hence, your net pay will only increase by RM 59.
Bonus Example
A RM 1,000 bonus will generate an extra RM 590 of net incomes. A RM 5,000 bonus will generate an extra RM 2,950 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.