Malaysia trims middle-income tax rates and raises top-bracket levy in 2027 budget
Prime Minister Anwar Ibrahim announced lower rates for incomes between RM70,000-RM150,000 and a higher rate for earnings above RM1 million as part of the 2027 budget.
Speaking in the Dewan Rakyat while tabling the 2027 budget, Prime Minister Anwar Ibrahim detailed several adjustments to personal income tax. The rate for chargeable income from RM70,000 to RM100,000 will be reduced to 18% from 19%, and the bracket covering RM100,000 to RM150,000 will fall to 24% from 25%. Conversely, the tax on individuals earning more than RM1 million a year will increase to 30%, up from a maximum of 28%. The government also plans to raise the individual tax relief limit to RM12,000, its first change since 2010, and broaden eligible expenses to include postnatal care, elder-care, sports shoes, education, skills training, AI subscriptions, vaccination costs, and pet adoption from registered centres.
Why it matters
The changes reshape Malaysia's tax burden, affecting middle-income earners and high-income taxpayers while expanding relief categories.
How the sides frame it
HIGH AGREEMENTBoth centrist and right-leaning coverage report the same tax rate cuts, top-rate increase and expanded reliefs, though the right-leaning outlets add an estimate of extra disposable income.
CENTER
Centrist coverage presents the budget as a mix of tax cuts for middle incomes and higher reliefs, noting the increase in the top-bracket rate.
RIGHT
Right-leaning coverage frames the budget as a reduction in personal tax rates and an expansion of reliefs that will boost disposable income.
The right emphasises
- all resident tax brackets reduced by one point
- top personal tax rate set at 30% for incomes over RM1 million
- estimated RM1,600 increase in disposable income per household
In this story
Related stories
28 in this thread