Income Tax Calculator Malaysia
Find out how much your salary is after tax
Salary rate
Withholding
Salary RM 55,000
Tax - RM 1,160
Employment Insurance - RM 95
EPF - RM 6,056
tax_calculator.withholding_box.social_security_organization_contribution - RM 237
Total tax - RM 7,548
Net pay * RM 47,452
Marginal tax rate 19.6%
Average tax rate 13.7%
13.7%Total tax
86.3%
Net payThe Taxberg
RM 47,452
Net pay
RM 8,079
Tax the employer pays
RM 7,548
Tax you pay
Total tax paid
RM 15,627
Did you know your employer also pays tax on your salary? It costs the employer RM 8,079 to pay you RM 55,000. In other words, every time you spend RM 10 of your hard-earned money, RM 2.84 goes to the government.
Real tax rate
24.8%
So, with you and the employer both paying tax, what used to be a 13.7% tax rate now rises to 24.8%, meaning your real tax rate is actually 11.1% higher than what it seemed at first.
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Summary
If you make RM 55,000 a year living in Malaysia, you will be taxed RM 7,548. That means that your net pay will be RM 47,452 per year, or RM 3,954 per month. Your average tax rate is 13.7% and your marginal tax rate is 19.6%. 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 19.6, hence, your net pay will only increase by RM 80.4.
Bonus ExampleA RM 1,000 bonus will generate an extra RM 804 of net incomes. A RM 5,000 bonus will generate an extra RM 4,020 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.