Income tax calculator Malaysia
Find out how much your salary is after tax
Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 42,164
Employees' Provident Fund (EPF)
- RM 4,638
Social Security Organization (SOCSO) contribution
- RM 19.75
Employment Insurance System (EIS) contribution
- RM 7.90
Tax
- RM 8,891
Total tax
- RM 13,557
Net pay
*
RM 28,607
Marginal tax rate
36.0%
Average tax rate
32.2%
67.8%
Net pay
32.2%
Total tax
Total tax
Net pay
The Taxberg
RM 28,607
Net pay
RM 5,558
Tax the employer pays
RM 13,557
Tax you pay
Total tax paid
RM 19,115
Did you know your employer also pays tax on your salary? It costs the employer RM 5,558 to pay you RM 42,164. In other words, every time you spend RM 10 of your hard-earned money, RM 4.53 goes to the government.
Real tax rate
40.1%
So, with you and the employer both paying tax, what used to be a 32.2% tax rate now rises to 40.1%, meaning your real tax rate is actually 7.9% higher than what it seemed at first.
Summary
If you make RM 505,968 a year living in Malaysia, you will be taxed RM 162,681. That means that your net pay will be RM 343,287 per year, or RM 28,607 per month. Your average tax rate is 32.2% and your marginal tax rate is 36.0%. 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 35.98, hence, your net pay will only increase by RM 64.02.
Bonus Example
A RM 1,000 bonus will generate an extra RM 640 of net incomes. A RM 5,000 bonus will generate an extra RM 3,201 of net incomes.
Compare average tax
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.