Identifying the exact income threshold for tax liability is essential for effective financial planning and ensuring compliance with the Inland Revenue Board of Malaysia (HASiL). For the 2025 Year of Assessment, taxpayers can optimize their obligations by understanding how filing status and dependents impact their tax-free limits.
Thresholds for Separate Assessment Under a Separate Assessment, individuals or single taxpayers are not subject to income tax if their annual income is RM37,333 or below, averaging RM3,111 monthly. This threshold increases with dependents: married individuals with one child have a tax-free limit of RM39,333 annually, while those with two children can earn up to RM41,333 before incurring tax.
Thresholds for Joint Assessment Opting for a Joint Assessment significantly raises the income ceiling before tax applies. For married couples with no children, the annual tax-free threshold is RM48,000 (RM4,000 monthly). This limit extends to RM50,000 for families with one child and reaches RM52,000 for those with two children. These figures represent the total combined income of the couple.
Tax Rebates for Lower Income Brackets To further support lower-income earners, HASiL provides a specific tax rebate for individuals with a taxable income not exceeding RM35,000. Single taxpayers or those under Separate Assessment are eligible for a RM400 self-rebate. Meanwhile, those choosing Joint Assessment can benefit from a combined rebate of RM800, consisting of a RM400 self-rebate and a RM400 husband/wife rebate.