Summary
- Basic personal tax relief increases to RM12,000.
- Selected income tax rates reduced by one percentage point.
- Around five million taxpayers expected to benefit.
KUALA LUMPUR, October 9 — Malaysians will receive higher personal income tax relief under Budget 2027, with the government increasing the basic individual tax relief from RM9,000 to RM12,000.
For the first time since 2010. Prime Minister Anwar Ibrahim also announced a one-percentage-point reduction in individual income tax rates for residents earning taxable income,
Between RM70,000 and RM150,000, bringing the rates to 18% and 24% for the respective income brackets. Tax relief will also be expanded to cover postnatal care, parental and grandparent care.
Children’s tuition fees, sports shoes, artificial intelligence subscriptions, vaccinations and adoption costs for pets from registered centres. The government estimates that approximately five million taxpayers.
Could enjoy additional disposable income of up to RM1,600, while the tax rate for individuals earning more than RM1 million will be adjusted to 30%.
