Income tax calculator MalaysiaFind out how much your salary is after tax
Salary rate
Withholding
Salary RM 70,000
Tax - RM 2,710
Employment Insurance - RM 95
EPF - RM 7,747
tax_calculator.withholding_box.social_security_organization_contribution - RM 237
Total tax - RM 10,789
Net pay * RM 59,211
Marginal tax rate 23.7%
Average tax rate 15.4%
15.4%Total tax
84.6%
Net payThe Taxberg
RM 59,211
Net pay
RM 10,079
Tax the employer pays
RM 10,789
Tax you pay
Total tax paid
RM 20,868
Did you know your employer also pays tax on your salary? It costs the employer RM 10,079 to pay you RM 70,000. In other words, every time you spend RM 10 of your hard-earned money, RM 2.98 goes to the government.
Real tax rate
26.1%
So, with you and the employer both paying tax, what used to be a 15.4% tax rate now rises to 26.1%, meaning your real tax rate is actually 10.7% higher than what it seemed at first.
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Summary
If you make RM 70,000 a year living in Malaysia, you will be taxed RM 10,789. That means that your net pay will be RM 59,211 per year, or RM 4,934 per month. Your average tax rate is 15.4% and your marginal tax rate is 23.7%. 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 23.7, hence, your net pay will only increase by RM 76.3.
Bonus ExampleA RM 1,000 bonus will generate an extra RM 763 of net incomes. A RM 5,000 bonus will generate an extra RM 3,815 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.