Malaysians will get broader personal income tax relief under Budget 2027, with the government increasing the individual relief limit and reducing tax rates for selected income groups.
Prime Minister Datuk Seri Anwar Ibrahim announced that the individual income tax relief limit will be raised from RM9,000 to RM12,000.
Tax rates reduced for selected income bands
Individual income tax rates will also be reduced by one percentage point for two taxable income bands.
Those with taxable income between RM70,000 and RM100,000 will face an 18% tax rate, while those earning between RM100,000 and RM150,000 will be taxed at 24%.
Education relief expanded
Tax relief for education and skills fees will also be broadened under Budget 2027.
It will now cover all fields of study, while children’s tuition fees will also be included.
AI subscriptions can be claimed too
The government is also expanding lifestyle tax relief to include AI subscriptions.
This means eligible taxpayers will be able to claim qualifying expenses for AI services as part of their lifestyle relief.
Pet vaccination and adoption costs included
Pet owners will also get new tax relief options.
Budget 2027 will allow claims for pet vaccination costs as well as adoption fees for animals adopted from registered centres.
The changes are part of a wider effort to ease household expenses while updating the tax relief system to reflect newer costs faced by Malaysians.
