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Budget 2027 Tax Calculator: How Much Income Tax Will You Save?

Budget 2027, tabled on 9 October 2026, lifts the individual relief from RM9,000 to RM12,000 — the first increase since 2010 — and cuts rates on RM70,001–150,000 by one point. Enter your salary to see your saving.

Already included: individual relief, EPF (11%, capped at RM4,000), SOCSO + EIS (capped at RM350).

After Budget 2027 you pay less by

RM262.50

That’s per month RM21.88 · tax down 15.6%

YA2026 taxRM1,681.50
YA2027 tax (Proposed)RM1,419.00
Annual income (incl. bonus)RM65,000
Chargeable income YA2026 → YA2027RM51,650 → RM48,650
Marginal rate YA2026 → YA202711% → 6%
Use the full calculatorSave more this year

YA2027 rates and the RM12,000 relief are Budget 2027 proposals and take effect only once the Finance Bill is passed.

How much do different salaries save?

Single person, no bonus, only the individual relief + EPF + SOCSO/EIS. With other reliefs your saving may differ — use the calculator above.

Monthly salary YA2026 YA2027 Saving / year
RM3,000 RM0.00 RM0.00 RM0
RM4,000 RM190.04 RM100.04 RM90
RM5,000 RM1,299.00 RM1,119.00 RM180
RM6,000 RM2,451.50 RM2,121.50 RM330
RM7,000 RM3,823.50 RM3,441.50 RM382
RM8,000 RM6,103.50 RM5,437.00 RM666.50
RM10,000 RM11,062.50 RM9,976.00 RM1,086.50
RM12,000 RM17,062.50 RM15,736.00 RM1,326.50
RM15,000 RM26,062.50 RM24,512.50 RM1,550
RM20,000 RM41,062.50 RM39,512.50 RM1,550
RM30,000 RM71,062.50 RM69,512.50 RM1,550
RM50,000 RM132,929.00 RM131,349.00 RM1,580

Old vs new tax rates

Progressive rates for tax residents. RM70,001–100,000 falls from 19% to 18%; a new RM100,001–150,000 band falls from 25% to 24%; everything above RM1 million is taxed at 30%.

Chargeable income (RM) YA2026 YA2027
0 – 5,000 0% 0%
5,001 – 20,000 1% 1%
20,001 – 35,000 3% 3%
35,001 – 50,000 6% 6%
50,001 – 70,000 11% 11%
70,001 – 100,000 19% 18% ↓
100,001 – 150,000 25% 24% ↓
150,001 – 400,000 25% 25%
400,001 – 600,000 26% 26%
600,001 – 1,000,000 28% 28%
1,000,001 – 2,000,000 28% 30% ↑
Above 2,000,000 30% 30%

What changes for reliefs?

Who benefits most?

Everyone gets RM3,000 more relief, so the saving is RM3,000 × your marginal rate: RM180 at 6%, RM330 at 11%, RM540 at 18%. People with chargeable income between RM70,000 and RM150,000 also gain from the rate cuts — Deloitte estimates about RM840 at RM100,000 and RM1,520 at RM150,000.

People who already pay nothing (single, earning under RM3,500 a month) see no extra saving.

What can you do now?

The new rates start in YA2027, but YA2026 reliefs only count for money spent by 31 December 2026. Use the year-end planner to find the reliefs you haven’t used yet.

FAQ

When do the Budget 2027 tax cuts take effect?

From the year of assessment 2027 — income earned from 1 January 2027, filed in 2028. The return you file in March–May 2027 is for YA2026, which still uses the RM9,000 relief and current rates.

Are these changes final?

They are proposals until Parliament passes the Finance Bill and it is gazetted. Personal tax measures in recent budgets have generally passed as announced, but the final law decides.

Will my monthly PCB go down straight away?

PCB follows the rates and reliefs for each year. The new relief applies from YA2027, and LHDN normally updates its PCB rules for the new year, so monthly deductions should fall then. Check LHDN for the exact timing.

How much does someone earning RM3,000 a month save?

A single person on RM3,000 a month already pays no tax for YA2026 after reliefs and the RM400 rebate, so there is no extra saving. The biggest winners are people with chargeable income between RM70,000 and RM150,000.

Who pays more?

Anyone with chargeable income above RM1 million. The 30% top rate now starts at RM1 million instead of RM2 million, so income between RM1m and RM2m is taxed at 30% instead of 28%.

What other reliefs are new?

Proposals include AI subscriptions and pet adoption/vet costs under lifestyle relief; sports shoes (RM300) under sports relief; medical relief renamed Health & Well-being with postnatal care (RM3,000); education relief widened to any field and children’s tuition; all care expenses for parents; and the domestic tourism relief extended by a year.

Sources