Individual tax relief rises to RM12,000 and two middle-income rates are cut, but the top 30% rate starts at RM1 million
Individual tax relief rises to RM12,000 from RM9,000, last revised in 2010 (Malay Mail, Bernama). Rates fall to 18% for chargeable income of RM70,000 to RM100,000 and 24% for RM100,000 to RM150,000. The 30% top rate applies from 2027 to income over RM1 million (instead of RM2 million) (Bernama, Malaysiakini). New reliefs include postnatal care, caregiving, AI subscriptions, vaccinations and pet adoption. About five million taxpayers will have up to RM1,600 more disposable income.
It is the first large revision in years of tax reliefs and mainly helps middle-income earners while asking more from the highest earners.
If you earn RM70,000 to RM150,000 you pay a slightly lower rate; keep receipts for the new reliefs.
Supporters say it eases the squeeze on the M40.
Critics say a lower threshold for the top rate and new reliefs add complexity.
Wait for the Inland Revenue Board guidance on how the new reliefs are claimed.
DailyDrop Malaysia edition No. 6 · Morning · SAT., OCT. 10, 2026