Malaysia Income Tax Relief 2026: New Claims for YA 2025

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The tax season in Malaysia is coming up. If you’re like most taxpayers, your top priority right now is to start learning about all the income tax relief options, deductions, and rebates you’re qualified for so you can claim tax effectively and reduce your overall personal tax burden. (Trust us; all Malaysian taxpayers are forced to perform this annual rite; indeed, everyone on the planet.)

Let’s get started! The goal of this post is to offer you a comprehensive review of everything you can claim to maximise your refund according to income tax Malaysia guidelines, especially for those wondering what tax relief can I claim under their personal income tax for Year of Assessment 2025 (YA 2025). But made simple for your consumption.

Quick Summary: Malaysia Personal Income Tax Relief in 2026 (YA 2025)

Here’s a quick overview of the latest personal tax reliefs you can claim in YA 2025 according to LHDN:

Individual & Lifestyle

Category	Relief Amount
Individual	RM9,000
Education (Self)	RM7,000 (RM2,000 upskilling)
Disabled (Self)	RM7,000
Lifestyle	RM2,500
Sports (Additional)	RM1,000
EV Charging/Compost	RM2,500
Medical (Overall)	RM10,000
Medical Check-up/Mental/Covid	RM1,000 (within cap)

Parents, Spouse & Family

Category	Relief Amount
Spouse / Alimony	RM4,000
Disabled Spouse	RM6,000
Medical for Parents	RM8,000
Disabled Equipment	RM6,000
Learning Disability (≤18)	RM6,000

Children

Category	Relief Amount
Child <18	RM2,000
Child Pre-U (18+)	RM2,000
Child Higher Edu (18+)	RM8,000
Disabled Child	RM8,000
Disabled Child (Higher Edu)	+RM8,000
Breastfeeding Equipment	RM1,000 (2-year cycle)
Childcare / Kindergarten	RM3,000
SSPN (Net Deposit)	RM8,000

Insurance, Retirement & Protection

Category	Relief Amount
EPF + Life/Takaful	RM7,000 (RM4,000 + RM3,000 split)
Edu/Medical Insurance	RM4,000
SOCSO/EIS	RM350
PRS / Deferred Annuity	RM3,000

Housing

Category	Relief Amount
Housing Loan Interest (First Home)	RM7,000 (≤ RM500k) / RM5,000 (RM500k–RM750k)

What Changes in YA 2026 and YA 2027

The reliefs above are for YA 2025, the return you file in 2026. The next two years bring changes: YA 2026 (filed in 2027) follows Budget 2026, and YA 2027 (filed in 2028) follows the Budget 2027 proposals, which apply once the Finance Bill is passed. None of these changes apply to your YA 2025 return.

Relief	YA 2025	YA 2026 (Budget 2026)	YA 2027 (Budget 2027, proposed)
Individual & dependent relatives	RM9,000	RM9,000	RM12,000
Medical for self, spouse & child	RM10,000	RM10,000; vaccines widened to all approved vaccines; learning disability sub-limit up from RM6,000 to RM10,000	RM10,000, renamed Health & Well-being; adds postnatal care (up to RM3,000) and breastfeeding equipment (up to RM1,000)
Expenses for parents & grandparents	RM8,000, medical care, doctor’s verification required	No change	RM8,000, all types of care, no doctor’s verification needed
Education fees (self)	RM7,000, selected fields; RM2,000 upskilling sub-limit	No change; last year for the RM2,000 upskilling sub-limit	RM7,000, renamed Education & Skills Training Fees; any field from Certificate to PhD
Life insurance/takaful	RM3,000, self and spouse	RM3,000, now also covers unmarried children (under 18, in tertiary education, or disabled at any age)	No change announced
Childcare & kindergarten	RM3,000, children aged 6 and below	RM3,000, children up to 12, including registered after-school transit centres	No change announced
Lifestyle	RM2,500	No change	RM2,500; adds AI software subscriptions, pet adoption and vet vaccination/neutering
Sports	RM1,000	No change	RM1,000; adds sports shoes (up to RM300)
EV charging & food-waste compost machine	RM2,500	RM2,500; adds household food-waste grinders and home CCTV	No change announced
SOCSO & EIS	RM350	No change	RM350, now covering LINDUNG KENDIRI; extra RM150 for voluntary contributions
Domestic tourism	Not available	RM1,000 (new)	RM1,000, extended

A few details on the bigger YA 2027 changes:

Individual relief goes up to RM12,000. This is the first increase since YA 2010.
Education and Skills Training Fees now covers courses at any level and in any field, as long as they’re recognised by a regulatory agency. Within the RM7,000 limit, you can also claim up to RM3,000 for TVET upskilling courses for yourself or your spouse, and up to RM2,000 for non-work courses for yourself or your spouse, or STEM, arts, language and religious classes or tuition for your children.
Parents and grandparents relief covers care at home, day care and residential care centres. You’ll need a written declaration from the carer (who can’t be you, your spouse or your child) or a copy of the carer’s work permit, plus receipts.

Tax rates are changing too. From YA 2027, the RM70,001 to RM100,000 band drops from 19% to 18%, a new RM100,001 to RM150,000 band is taxed at 24% (down from 25%), and the top 30% rate starts at RM1 million instead of RM2 million.

For everything else in Budget 2027, including changes for business owners, see our Budget 2027 Malaysia summary.

Tax Reliefs, Deductions & Rebates In Detail

This section is for you if you’re seeking clarity on the details of each tax relief, deduction, or refund because, as is to be expected, many of them have requirements and conditions that must be met in order to be claimed.

Continue reading to verify your eligibility for the reliefs, deductions, and rebates you intend to claim.

It’s important to note that tax reliefs, deductions, and rebates are three separate mechanisms designed to assist you in lowering your overall income, chargeable income, and amount of tax charged, respectively. This will allow you to benefit from a lower tax rate and pay less in taxes overall.

If you need a guide on How to File your taxes with MyTax we have an article on that too!

Tax Reliefs: What You Can Claim

Tax reliefs help reduce your chargeable income. This could affect the income bracket on which your taxes will be calculated based on. Let’s say you made RM60,000 in 2025. Applying the reliefs reduces that amount. Instead of paying tax based on the brackets and the rate of your gross income, you might find yourself having a lower “taxable income” and saving more on taxes.

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1) Individual & dependent relatives

Claim: up to RM9,000

It is granted to an individual for themselves and their dependents.

2) Husband/Wife/Alimony

Claim: Up to RM4,000

This tax relief is only applicable if your spouse has no source of income, or if he/she opts for a joint assessment in your name. You cannot claim this relief if your spouse has a gross income exceeding RM4,000 derived from sources outside of Malaysia.

If you’re a husband paying alimony to an ex-wife, the deduction is allowed for the amount of alimony paid or up to a limit of RM4,000. Note as well that the total deduction for a wife living together and alimony payments to a former wife is also capped at RM4,000. Only formal alimony agreements qualify for this tax relief (voluntary alimony payments under a mutual agreement do not qualify).

3) Education fees in Malaysia

Claim: Up to RM7,000

You can claim this tax relief for the amount spent on a course of study undertaken in a recognised institution or professional body within Malaysia and must be listed by the Ministry of Higher Education Malaysia.

Education level	Eligible courses of study
Masters or Doctorate	Any course of study undertaken is eligible
Other than a Master’s/Doctorate	Any course of study up to tertiary level undertaken for law, accounting, Islamic finance, technical, vocational, industrial, scientific, or technical skills or qualifications is eligible
A course of study undertaken for up-skilling (sub-limit of RM2,000)	Any skill areas recognised by the Director General of the Department of Skills Development under the National Skills Development Act 2006 (Act 652)

The overall cap remains RM7,000, with up to RM2,000 allowed specifically for upskilling and self-enhancement courses.

4) Medical treatment, special needs, and carer expenses for parents

Claim: Up to RM8,000 (capped)

You can claim up to RM8,000 for medical treatment, special needs and carer expenses incurred for your parents and grandparents if:

Their health condition is certified by a registered medical practitioner; and
They reside in Malaysia and receive the treatment in Malaysia.

This includes:

Non-cosmetic dental care
Nursing home care
Medical treatment, therapy and care services

Within the RM8,000 limit, you can also claim for full medical check-ups for parents or grandparents, up to RM1,000.

A licensed medical professional or written certification from a qualified caretaker (who should not be the taxpayer, spouse or child) should be kept as proof.

5) Medical expenses

Claim: Up to RM10,000 (in total)

You can claim tax relief for the following categories of medical expenses;

Category / Expense Type	Claim Limit (within RM10,000)	What It Covers	Who It Applies To
Overall medical expenses – serious diseases & fertility treatment	Up to RM10,000 (combined cap)	Serious diseases treatment (e.g. cancer, heart attack, renal failure, major organ transplant, major burns, AIDS, Parkinson’s disease and others), consultation, treatment and medication; fertility treatment (IUI, IVF and other approved procedures)	Self, spouse, child (fertility: self or spouse only)
Vaccination expenses	Up to RM1,000	Approved vaccinations including pneumococcal, HPV, influenza, rotavirus, varicella, meningococcal, TDAP and Covid-19	Self, spouse, child
Dental treatment and dental care	Up to RM1,000	Dental treatment and dental care including non-cosmetic procedures	Self, spouse, child
Full medical check-up, Covid-19 tests, mental health, health screening devices and disease detection tests	Up to RM1,000	Full medical check-ups, Covid-19 detection tests (including self-test kits), mental health screening/consultation (psychiatrist, clinical psychologist, counsellor), purchase of health screening devices, disease detection tests	Self, spouse, child
Learning disability assessment & intervention	Up to RM6,000	Diagnostic assessment, early intervention programmes and rehabilitation treatment for learning disabilities	Child aged ≤18

It’s crucial that you save the invoices for your medical care as well as the certified doctor’s certification for future use.

6) Equipment for disabled self, spouse, child, and parent

Claim: Up to RM6,000

This relief can be claimed for the costs of purchasing any necessary basic supporting equipment for yourself, your spouse, your child, or your parents. The disabled person must be registered with the Department of Social Welfare.

Haemodialysis machines, wheelchairs, artificial legs, and hearing aids are examples of basic auxiliary equipment. Spectacles and optical lenses are not permitted.

7) Disabled individual

Claim: RM7,000

If you are a disabled individual registered with the Department of Social Welfare, you can claim a fixed relief of RM7,000. This is in addition to the general RM9,000 individual relief.

8) Disabled husband/wife

Claim: RM6,000

If your spouse is a disabled person registered with the Department of Social Welfare, you are entitled to an additional relief of RM6,000.

9) Disabled child

Claim: RM8,000

Individuals with a disabled child up to any age who is unmarried can claim this tax relief.

10) Additional relief for a disabled child (18+) in higher education

Claim: RM8,000

You are also entitled to this additional relief (in addition to the RM6,000 relief mentioned above) if your child is unmarried (18 years of age or older) and meets the following conditions:

In full-time education (other than matriculation/pre-degree/A-levels) at an education establishment in Malaysia
Serving under articles or indentures to qualify in a trade or profession in Malaysia (apprenticeship)
Pursuing a full-time degree (or equivalent, including Master’s or Doctorate) outside of Malaysia

In total, you can get a disabled child relief of up to RM16,000.

11) Ordinary child relief (under the age of 18)

Claim: RM2,000 per child

A deduction is allowed for every one of your unmarried children below the age of 18 years old, at any time during the year of assessment.

12) Child (18+) in full-time education

Claim: RM2,000 or RM8,000 per child

Slightly different from the previous claim, there is an alternative deduction of RM8,000 is allowed if the child is unmarried, 18 years of age and above, and meets any of the following criteria:

In full-time education (other than matriculation/pre-degree/A-levels) at an education establishment in Malaysia
Serving under articles or indentures to qualify in a trade or profession in Malaysia (apprenticeship)
Pursuing a full-time degree (or equivalent, including Master or Doctorate) outside of Malaysia

13) Breastfeeding equipment

Claim: Up to RM1,000 per mother

You can claim this relief if you are a breastfeeding mother and have purchased breastfeeding equipment for your personal use to breastfeed your child (aged 2 years and below). This claim is limited to once every 2 years only.

Breastfeeding equipment that qualifies includes:

Breast pump kit and ice pack
Breast milk collection and storage equipment
Cooler set or bag

14) Childcare fees

Claim: Up to RM3,000

You are eligible to get this reimbursement if you have paid kindergarten or childcare costs for a kid who is 6 years old or younger. Even if you have more than one child who qualifies for specialised care, the maximum amount is RM3,000.

If you’re a married couple and are assessed separately, this relief can only be claimed by either party who makes the expenditure. Divorced couples, meanwhile, can both claim the tax relief, provided they made payments for the childcare fees of different children. Claims made under this category must be evidenced by the child’s birth document and receipts from the childcare centre or kindergarten.

The maximum limit of this relief used to be set at RM1,000 but was increased to RM3,000 as part of the government’s Covid-19 economic recovery programme.

15) Lifestyle purchases for self, spouse, or child

Claim: Up to RM2,500

This tax relief applies to the following expenses:

Books, journals, magazines, printed newspapers, and other similar publications in both hardcopy and electronic forms; banned and offensive materials excluded.
Personal computers, smartphones or tablets; additional charges for warranty or devices used for your business are excluded.
Sports equipment for sports activities defined under the Sports Development Act 1997, including golf balls and shuttlecocks, and payment for a gym membership. Motorised bicycles and club memberships which provide gym facilities are excluded.
Internet subscription is paid through a monthly bill registered under your name.

16) Expenses related to sports activity for self

Claim: Up to RM1,000

This additional lifestyle relief is allocated specifically for sports-related expenses and is on top of the RM2,500 lifestyle cap. It covers:

Purchase of sports equipment for any sport defined under the Sports Development Act 1997 (excluding motorised two-wheel bicycles)
Rental or entrance fees for sports facilities
Registration fees for approved sports competitions
Gym membership fees and sports training fees

If, for example, you spent RM3,000 on sports equipment and gym membership in 2025, you could claim RM2,500 under the general lifestyle relief and the remaining RM500 under this sports activity relief, up to a maximum of RM1,000.

17) Electric Vehicle (EV) Charging Facility Expenses and Domestic Food-Waste Compost Machine

Claim: Up to RM2,500

If you own or use an electric vehicle, or you purchase a domestic food-waste composting machine for personal use, you can claim up to RM2,500 for:

Installation, rental or purchase (including hire-purchase) of EV charging equipment, and/or
Purchase, rental or hire-purchase of domestic food-waste composting machines

These must be for non-business use.

18) Nett deposit in SSPN

Claim: Up to RM8,000 per individual with children

This relief is available for the nett deposit made by parents into the National Education Savings System (SSPN) for their children’s higher education, up to the claim restriction.

In order to be clear, the net deposit is the amount of savings that is left over after subtracting any withdrawals you may have made over the year. You are only permitted to deduct RM500 tax relief, for instance, if your SSPN account had a balance of RM4,500 brought forward from 2023 to 2024, and you afterwards deposited RM2,000 and later withdrew RM1,500 throughout the year (RM2,000 – RM1,500). The brought-forward balance (RM4,500) won’t be considered.

If you are unsure where to find this information, SSPN will kindly generate a tax document that shows you the net deposit you can claim for tax relief.

19) Life insurance and EPF

Claim: Up to RM7,000 (this allocation differs for public and non-public employees)

You may claim this relief for personal life insurance premiums and premiums paid for your spouse, but not your children. Contributions to approved schemes, such as the Employees Provident Fund (EPF), too, are allowed under this relief. Private retirement scheme (PRS) contributions, on the other hand, fall under a different category.

Depending on whether you are a pensionable state employee or a private sector employee, this relief is handled differently. Normally, pensionable public employees are not eligible for the EPF relief allocation but may claim up to the full RM7,000 relief under life insurance premium payments and takaful contributions. Private sector employees (who make EPF contributions) are limited to a maximum of RM4,000 for EPF or other approved schemes, and RM3,000 for life insurance premium payments and takaful contributions.

With effect from YA 2022, the government will permit public employees who also make self-contributions to the EPF or other approved schemes to take advantage of the relief allocations of RM3,000 (for a life insurance premium payments/takaful contributions) and RM4,000 (for the EPF or other approved schemes).

20) Private retirement scheme (PRS) and the deferred annuity

Claim: Up to RM3,000

The maximum deduction allowed by this relief is RM3,000 for a person and RM3,000 for a spouse who is employed. Nevertheless, the deduction is only permitted if you choose joint assessment, and it is capped at RM3,000.

From YA 2012, this tax relief has been offered, and it has now been extended until YA 2025.

21) Education and medical insurance

Claim: Up to RM4,000

You can now claim up to RM4,000 for education and medical insurance premiums or takaful contributions for yourself, your spouse or your child.

Previously, the cap was RM3,000. From YA 2025 onwards, the higher RM4,000 limit applies.

22) SOCSO

Claim: Up to RM350

Your contributions to the Social Security Organisation (SOCSO) are deductible during the assessment year. Previously, this relief was limited to RM250, but it was adjusted back to RM350 in Budget 2022. The scope of this tax relief was also expanded to include contributions made by employees through the Employment Insurance System (EIS).

23) Housing loan interest for first-time homebuyers (New for YA 2025)

Claim: Up to RM7,000 or RM5,000

From YA 2025, you can claim relief on the interest paid on a housing loan for your first residential property, subject to these conditions:

The Sale and Purchase Agreement (SPA) is signed between 1 January 2025 and 31 December 2027
The property is used as your first residential home

The annual claim limit depends on the property price:

Up to RM7,000 per year for a house price up to RM500,000
Up to RM5,000 per year for a house price above RM500,000 and up to RM750,000

Only the owner-occupier can claim this relief, and it is generally not applicable if the property is rented out.

Tax Deductions

While tax reliefs reduce your chargeable income, tax deductions reduce the amount of your aggregate income (the sum of your total income for the entire year). These are the deductions allowed for YA 2025, on an individual claim:

1) Donations to charities, sports activities, and approved funds/institutions

Deduction: Up to 10% of aggregate income

Donations under the following categories are restricted to 10% of your aggregate income:

Gift of money to approved institutions/organisations/funds
Gift of money for any approved sports activity
Gift of money or cost of contribution in kind for any approved project of national interest
Gift of money in the form of wakaf to religious authorities or public universities or endowment to public universities

Individual taxpayer donations and contributions to help fight the Covid-19 pandemic (to approved institutions, organisations, or funds) are also included in this category. This includes the Covid-19 Fund, which the government established in 2020.

However, if you contribute to the National Disaster Management Agency (NADMA), your tax deduction is the amount of your contribution.

2) Other donations, gifts, and contributions

Deduction: Up to the value of the gift unless stated otherwise

Tax deductions (with varying limits) are available for the following situations:

Gift of artefacts, manuscripts, or paintings to the government or state government
Gift of money not exceeding RM20,000 for libraries
Gift of money or contribution in kind for disability facilities in public places
Gift of money or medical equipment not exceeding RM20,000 to approved healthcare facilities
Gift of paintings to the National Art Gallery or state art galleries

3) Membership subscription for professional bodies

Deduction: Membership subscription paid

Membership subscription fees paid to professional bodies for one’s profession – such as medical or legal professional fees – can be claimed as tax deductions.

Tax Rebates

Finally, after you’ve determined the amount of tax charged on your chargeable income, tax rebates are calculated at the end of your BE form. It has a direct impact on the amount of tax you pay.

1) Tax rebate for self

Rebate: RM400

You will be entitled to this rebate of RM400 on the tax charged if your chargeable income (after tax relief and deductions) does not exceed RM35,000.

2) Tax rebate for spouse

Rebate: RM400

You can claim this rebate if your chargeable income (after tax relief and deductions) does not exceed RM35,000 and you have been granted tax relief of RM4,000 for your spouse. As a reminder, the RM4,000 tax relief for your spouse is available if your spouse has no source of income or elects to file jointly in your name.

3) Departure levy rebate for umrah or religious travel

Rebate: Amount of departure levy paid

This rebate is granted to any Muslim person who leaves Malaysia by air to perform umrah or other kinds of religious pilgrimage, but not for the purpose of performing hajj. The following supporting documents are needed to claim this rebate:

For umrah: A copy of the visa issued by the embassy of Saudi Arabia
For other religious pilgrimages: Written verification by a recognised religious body

You can only claim this tax rebate twice per lifetime.

4) Zakat/fitrah

Rebate: Zakat/fitrah paid

This rebate is applied to the payment of obligatory zakat and fitrah during the basis of the assessment year.

We hope that now that you’re aware of the full list of tax reliefs, deductions, and rebates available for YA 2025, the tax filing process will be easier for you. It will undoubtedly take some time for you to go through your spending in the previous year and match it to all of the reliefs that you are eligible for, but the tax refunds will be well worth it!

Sources:

FAQ: Personal Income Tax Relief 2026 (YA 2025)

What is tax relief 2026 and how does it benefit me?

Tax relief 2026 refers to the deductions you can claim against your income for the Year of Assessment 2025 (YA 2025). These reliefs reduce your chargeable income, so the tax you pay when you e-file in 2026 is lower.

What are the main personal income tax reliefs for YA 2025?

The main reliefs for YA 2025 include:

Individual relief: RM9,000
Education fees: up to RM7,000 (including RM2,000 for upskilling)
Spouse/alimony: RM4,000
EPF and life insurance: RM3,000 to RM4,000 depending on the split
SOCSO and EIS: RM350
Lifestyle: RM2,500
Medical expenses for parents: RM8,000
Child relief: RM2,000 to RM8,000 (depending on age and study status)
Childcare/kindergarten fees: RM3,000
SSPN: RM8,000
Breastfeeding equipment: RM1,000 (once every 2 years)

What is the difference between tax relief and tax rebate?

Tax relief is deducted from your income before tax is calculated, while a tax rebate is deducted directly from the tax you owe. For example, after applying your reliefs, if your chargeable income is below RM35,000, you may qualify for a RM400 rebate.

Can I claim tax relief for lifestyle expenses in 2026?

Yes. Lifestyle relief of up to RM2,500 is available for YA 2025 (filed in 2026). It covers purchases such as books, computers, smartphones, internet subscriptions and sports equipment.

Are there any new or extended tax reliefs for YA 2025?

Extended reliefs include:

Upskilling/self-enhancement courses (RM2,000, extended to YA 2026)
PRS and deferred annuity (RM3,000, extended to YA 2025)
EV charging facilities (RM2,500, extended to YA 2027)

How do I claim YA 2025 reliefs during e-filing?

You claim them when you submit your tax return through the MyTax portal during the 2026 e-filing season. Keep your receipts and supporting documents in case LHDN reviews your return. For a step-by-step guide, read how to file your taxes with MyTax.

Where can I find the official list of YA 2025 reliefs?

The official list is published on the LHDN website and updated every year.

What documents should I keep for my 2026 relief claims?

Keep receipts, invoices and official statements for every expense you claim (education, insurance, medical, lifestyle, childcare, SSPN) for at least 7 years, as required by LHDN.

Can both spouses claim child relief for the same child?

No. Child relief for each child can only be claimed by one parent for a given year of assessment.

What if I forgot to claim a relief when filing YA 2025 in 2026?

You can submit an amendment within the allowed period, or contact LHDN for guidance on making a correction.

What is the difference between YA 2025 and YA 2026 reliefs?

You are currently filing for YA 2025 (income earned in 2025). YA 2026 refers to income earned in 2026 and includes changes from Budget 2026: a new RM1,000 domestic tourism relief, childcare relief for children up to 12, life insurance relief covering children, a higher RM10,000 sub-limit for children’s learning disability treatment, wider vaccine coverage, and food-waste grinders and home CCTV under the EV charging relief. See what changes in YA 2026 and YA 2027.

Are there new tax reliefs in Budget 2027?

Yes. Budget 2027 raises individual relief from RM9,000 to RM12,000 and expands several reliefs, including postnatal care, AI subscriptions, pet care, sports shoes and children’s tuition. These apply from YA 2027 (filed in 2028), not to YA 2025. See what changes in YA 2026 and YA 2027 above.

Can I claim domestic travel under the Visit Malaysia 2026 incentive?

Yes. For YA 2026, there is a special relief of up to RM1,000 for entrance fees to tourist attractions and cultural performances. Keep receipts for spending from 1 January 2026. Budget 2027 extends this relief for YA 2027.

Has the childcare/kindergarten relief changed?

For YA 2025, it stays at RM3,000 for children aged 6 and below. From YA 2026, the relief is more flexible and covers children up to 12 years old, including registered after-school transit centres.