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Budget 2027 tax savings calculator

Budget 2027 wants to cut income tax for most of us. Type in your income and see how much stays in your pocket.

Rates checked 24 October 2026.

RM
RM
RM
Your Budget 2027 tax savingRM330.00a year, about RM27.50 a month
Tax for YA2026 (current)
RM2,451.50
Tax for YA2027 (proposed)
RM2,121.50
Chargeable income YA2026
RM58,650.00
Chargeable income YA2027
RM55,650.00
Top band YA2026
11%
Top band YA2027
11%

Where the saving comes from

  • Self relief RM9,000 → RM12,000
  • Lower rates on RM70,001–RM150,000
Show the working · YA2026
  1. Yearly income: RM72,000.00
  2. Less reliefs: −RM13,350.00 (self RM9,000.00, EPF RM4,000.00, SOCSO + EIS RM350.00)
  3. Chargeable income: RM58,650.00
  4. 1% on RM15,000.00 = RM150.00
  5. 3% on RM15,000.00 = RM450.00
  6. 6% on RM15,000.00 = RM900.00
  7. 11% on RM8,650.00 = RM951.50
  8. Tax for the year: RM2,451.50 (Rates for YA2026)
Show the working · YA2027
  1. Yearly income: RM72,000.00
  2. Less reliefs: −RM16,350.00 (self RM12,000.00, EPF RM4,000.00, SOCSO + EIS RM350.00)
  3. Chargeable income: RM55,650.00
  4. 1% on RM15,000.00 = RM150.00
  5. 3% on RM15,000.00 = RM450.00
  6. 6% on RM15,000.00 = RM900.00
  7. 11% on RM5,650.00 = RM621.50
  8. Tax for the year: RM2,121.50 (Rates for YA2027)
Number looks wrong? Tell me

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What Budget 2027 changes for individuals

Budget 2027, tabled in October 2026, proposes two changes that cut tax for most employees from year of assessment 2027, which is income earned in 2027 and filed in 2028.

The proposals also widen several reliefs: the SOCSO relief would formally cover EIS, lifestyle spending moves into a broader education and skills relief that includes AI software subscriptions, and sports shoes up to RM300 count towards the sports relief. This calculator includes the two changes that affect almost everyone.

When it takes effect

These are proposals until Parliament passes the Finance Bill, usually by December. Your monthly PCB would change from January 2027 once LHDN updates its schedules. We will update this page as soon as the final figures are gazetted.

Worked example

A single employee earning RM72,000 a year who claims RM4,000 EPF and RM350 SOCSO relief has chargeable income of RM58,650 today and pays RM2,451.50 in tax. Under the proposal, chargeable income falls to RM55,650 and tax to RM2,121.50, a saving of RM330.

Sources: Ministry of Finance Budget 2027, PwC Malaysian Tax Booklet.

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