Income tax calculator Malaysia
Find out how much your salary is after tax
Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 18,942
Employees' Provident Fund (EPF)
- RM 2,084
Social Security Organization (SOCSO) contribution
- RM 4.56
Employment Insurance System (EIS) contribution
- RM 1.82
Tax
- RM 4,437
Total tax
- RM 6,527
Net pay
*
RM 12,415
Marginal tax rate
38.6%
Average tax rate
34.5%
65.5%
Net pay
34.5%
Total tax
Total tax
Net pay
The Taxberg
RM 12,415
Net pay
RM 2,480
Tax the employer pays
RM 6,527
Tax you pay
Total tax paid
RM 9,007
Did you know your employer also pays tax on your salary? It costs the employer RM 2,480 to pay you RM 18,942. In other words, every time you spend RM 10 of your hard-earned money, RM 4.76 goes to the government.
Real tax rate
42.0%
So, with you and the employer both paying tax, what used to be a 34.5% tax rate now rises to 42.0%, meaning your real tax rate is actually 7.5% higher than what it seemed at first.
Summary
If you make RM 984,984 a year living in Malaysia, you will be taxed RM 339,410. That means that your net pay will be RM 645,574 per year, or RM 53,798 per month. Your average tax rate is 34.5% and your marginal tax rate is 38.6%. 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 38.59, hence, your net pay will only increase by RM 61.41.
Bonus Example
A RM 1,000 bonus will generate an extra RM 614 of net incomes. A RM 5,000 bonus will generate an extra RM 3,071 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.