Income Tax Calculator Malaysia
Find out how much your salary is after tax
Salary rate
Withholding
Salary RM 940,000
Tax - RM 218,470
Employment Insurance - RM 95
EPF - RM 103,408
tax_calculator.withholding_box.social_security_organization_contribution - RM 237
Total tax - RM 322,210
Net pay * RM 617,790
Marginal tax rate 37.0%
Average tax rate 34.3%
34.3%Total tax
65.7%
Net payThe Taxberg
RM 617,790
Net pay
RM 123,127
Tax the employer pays
RM 322,210
Tax you pay
Total tax paid
RM 445,337
Did you know your employer also pays tax on your salary? It costs the employer RM 123,127 to pay you RM 940,000. In other words, every time you spend RM 10 of your hard-earned money, RM 4.74 goes to the government.
Real tax rate
41.9%
So, with you and the employer both paying tax, what used to be a 34.3% tax rate now rises to 41.9%, meaning your real tax rate is actually 7.6% higher than what it seemed at first.
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Summary
If you make RM 940,000 a year living in Malaysia, you will be taxed RM 322,210. That means that your net pay will be RM 617,790 per year, or RM 51,483 per month. Your average tax rate is 34.3% and your marginal tax rate is 37.0%. 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 37, hence, your net pay will only increase by RM 63.
Bonus ExampleA RM 1,000 bonus will generate an extra RM 630 of net incomes. A RM 5,000 bonus will generate an extra RM 3,150 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.