9th October 2026 - 3 min read
The tax relief that every taxpayer gets automatically is going up from RM9,000 to RM12,000, its first increase since 2010. Prime Minister Datuk Seri Anwar Ibrahim announced the change when he tabled Budget 2027 in the Dewan Rakyat on 9 October.
Several other reliefs will also cover more of what you spend, including sports shoes, AI subscriptions, and your children’s tuition. Anwar didn’t give a start date, so these are announced changes that aren’t in force yet.
Individual relief is the part of your income you don’t pay tax on. You don’t need receipts for it, because every taxpayer gets it when filing. With RM3,000 more relief, your chargeable income goes down by RM3,000.
How much you save depends on your tax band. The table shows the saving at different income levels, using the Budget 2027 tax rates.
| Chargeable Income | Tax Rate On This Band | Tax Saved From Extra RM3,000 (Our Calculation) |
|---|---|---|
| RM20,001 to RM35,000 | 3% | RM90 |
| RM35,001 to RM50,000 | 6% | RM180 |
| RM50,001 to RM70,000 | 11% | RM330 |
| RM70,001 to RM100,000 | 18% | RM540 |
| RM100,001 to RM150,000 | 24% | RM720 |
Each saving is RM3,000 multiplied by the tax rate for that band, for someone whose income stays in the same band. The rates for RM70,001 to RM150,000 are the new, lower Budget 2027 rates. Tax rates for these two bands were also cut by one percentage point, so taxpayers earning more than RM70,000 will save a little more than this table shows.
Five existing reliefs will cover more types of spending. Medical relief will cover care after giving birth. The relief for looking after parents will include grandparents, and will cover all care costs, not just medical bills.
Sports equipment relief will cover sports shoes. Education fee relief will cover all fields of study and your children’s tuition classes. Lifestyle relief will cover AI subscriptions, as well as vaccinations and adoption costs for pets adopted from registered centres. Anwar didn’t say whether the limits for these reliefs will change.
Budget tax changes usually apply from the following year of assessment. If that’s the case here, they’ll cover income and spending in 2027, which you’ll claim when you file in 2028. When you file in 2027 for this year’s income, the old RM9,000 individual relief and current rules still apply.
You’ll still need receipts for the new items, such as running shoes, a ChatGPT or Gemini subscription, or your pet’s vaccinations. Start a folder or phone album for them from 1 January. Our income tax relief guide lists everything you can claim now, and the personal income tax guide explains how filing works.
As a creative content writer, Eloise has covered finance, business, lifestyle topics, and even moonlights as a singer-songwriter outside of RinggitPlus. Her current interests are learning the best ways to optimise spending and credit card hacks to gain more airline miles.
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