If you’re filing your income tax in 2026 for income earned in 2025 (Year of Assessment 2025), tax reliefs are where most of your potential tax savings come from.

Tax reliefs reduce your chargeable income, which can lower the tax bracket you fall into or at least reduce the total tax you end up paying.

Even if your employer has already been deducting Monthly Tax Deduction (MTD) from your salary throughout the year, it’s still worth going through your reliefs properly. Your final tax payable is calculated after reliefs, deductions, and rebates. This is usually how refunds happen, when the amount deducted from your salary ends up being higher than the actual tax you owe.

As a general rule of thumb, if your annual employment income is around RM34,000 and above (after EPF deductions), you’ll likely need to file an income tax return.

To make things easier, here’s a clear breakdown of the tax reliefs, deductions, and rebates you can claim for YA 2025.

Filing Dates To Keep In Mind

For most salaried individuals filing Form BE, this is the usual deadline:

If you have business income and file Form B, the deadline is later. Just make sure you check which form applies to your situation before filing.

How Tax Reliefs, Deductions, And Rebates Work

Before we go through the list, it helps to understand the differences between these three categories.

Tax Reliefs

Tax reliefs reduce your chargeable income, which is the amount used to calculate how much tax you need to pay. This is where most everyday expenses fall, including EPF contributions, insurance premiums, lifestyle purchases, medical bills, education fees, and child-related costs.

Tax Deductions

Tax deductions reduce your aggregate income before your chargeable income is calculated. In practice, most people encounter these through donation deductions or professional membership subscriptions.

Tax Rebates

Tax rebates are applied at the very end of the calculation. They reduce the actual tax you need to pay after your tax amount has already been determined.

Examples include the RM400 personal rebate, zakat and fitrah payments, and certain departure levy rebates.

A Quick Note Before You Start Claiming

The list below is based on LHDN’s YA 2025 tax relief summary for resident individuals.

As you go through your expenses, try to match each receipt with the correct relief category. One thing to watch out for is accidentally claiming the same expense twice under different categories.

It’s also a good idea to keep your supporting documents organised. Under the Income Tax Act 1967, taxpayers are required to retain relevant documents for seven years from the end of the year of assessment.

In Detail: Tax Reliefs, Deductions, And Rebates For YA 2025

Part 1: Tax Reliefs

Individual And Dependent Relatives

Claim: RM9,000
This is the basic relief that most resident taxpayers receive automatically when filing their taxes.

Disabled Individual

Claim: RM7,000
Taxpayers who are certified as disabled by the Department of Social Welfare may claim this additional relief.

Husband, Wife, Or Alimony Payments

Claim: Up to RM4,000
This relief can be claimed if you support a spouse with no source of income or if your spouse elects for joint assessment under your name.

It may also apply to alimony payments made to a former spouse, subject to the RM4,000 cap.

Disabled Husband Or Wife

Claim: RM6,000
If your spouse is certified as a disabled individual, you may claim this additional relief.

Education Fees

Claim: Up to RM7,000
This relief applies to education fees for courses taken at recognised institutions in Malaysia.

Eligible courses include postgraduate programmes such as Master’s or PhD, as well as tertiary-level studies in areas such as law, accounting, or technical and vocational fields.

There is also a sub-limit of RM2,000 for skills enhancement or self-development courses.

Interest On Housing Loan For First Home Ownership

Claim: Up to RM7,000 or RM5,000

First-time homebuyers can claim tax relief on the interest paid on their housing loan. This relief is generally claimable for up to three consecutive years of assessment, starting from the first year the housing loan interest is paid.

This applies to residential properties with a Sale and Purchase Agreement (SPA) signed between 1 January 2025 and 31 December 2027.

The relief limit depends on the property price:

You’re claiming the interest portion of your housing loan, not the full monthly instalment.

Medical & Special Needs

Medical Expenses For Self, Spouse, Or Child

Claim: Up to RM10,000

This relief covers a range of medical expenses, including treatment for serious illnesses, fertility treatment, vaccinations, dental examinations, and medical check-ups.

Within the RM10,000 overall cap, certain expenses have their own sub-limits. Vaccinations, dental examinations, and medical check-ups are each restricted to RM1,000.

The relief also includes diagnosis, early intervention, or rehabilitation programmes for children aged 18 and below with learning disabilities, capped at RM6,000.

Medical Treatment And Care For Parents & Grandparents

Claim: Up to RM8,000

This covers expenses for medical treatment, dental treatment, special needs care, and nursing home care for parents or grandparents.

Full medical check-ups and vaccinations for parents are also included, with a RM1,000 sub-limit.

Basic Supporting Equipment For Disabled Individuals

Claim: Up to RM6,000

This relief applies to equipment purchased for a disabled individual, including items such as wheelchairs, hearing aids, dialysis machines, or artificial limbs.

The disabled individual must be registered with the Department of Social Welfare.

Lifestyle

Lifestyle Relief

Claim: Up to RM2,500

This relief covers several everyday expenses such as books, journals, smartphones, tablets, personal computers, internet subscription bills, and skills enhancement courses.

Additional Sports Lifestyle Relief

Claim: Up to RM1,000

Separate from the RM2,500 lifestyle relief, this category covers sports equipment, sports facility entrance fees, competition registration fees, and gym memberships or sports training fees.

EV Charging Equipment & Food Waste Composting Machine

Claim: Up to RM2,500

You may claim expenses related to purchasing or installing electric vehicle charging equipment, subscribing to EV charging facilities, or buying a domestic food waste composting machine for household use.

Insurance & Contributions

Life Insurance And EPF

Claim: Up to RM7,000

This relief includes contributions to EPF as well as life insurance or takaful contributions.

Private Retirement Scheme (PRS) & Deferred Annuity

Claim: Up to RM3,000

This applies to contributions made to PRS accounts or certain deferred annuity plans. The tax relief for PRS contributions is currently extended until Year of Assessment 2030.

Education And Medical Insurance

Claim: Up to RM4,000

Insurance premiums paid for education or medical coverage for yourself, your spouse, or your children may qualify for this relief.

Social Security Organisation (SOCSO) Contributions

Claim: Up to RM350

Employee contributions to SOCSO and the Employment Insurance System Act 2017 can be claimed under this category.

Skim Simpanan Pendidikan Nasional (SSPN) Net Savings

Claim: Up to RM8,000

Parents saving for their children’s higher education through SSPN can claim relief based on their net savings during the year. This means deposits minus any withdrawals made within the same year.

Child Relief

Child Below 18 Years Old

Claim: RM2,000 per child

This relief applies to unmarried children under the age of 18.

Child Aged 18 And Above In Full-Time Education

Unmarried Child With Disabilities

Claim: RM8,000

Parents with an unmarried disabled child may claim this relief.

Additional Relief For Disabled Child In Higher Education

Claim: Additional RM8,000

If the disabled child is 18 and above and pursuing higher education, an additional relief may apply.

Registered Childcare Centre Or Kindergarten Fees

Claim: Up to RM3,000

Parents can claim fees paid to registered childcare centres or kindergartens for children aged six years and below.

Breastfeeding Equipment

Claim: Up to RM1,000

Female taxpayers may claim expenses for breastfeeding equipment used for their own child aged two years and below.

This relief can only be claimed once every two years.

Part 2: Tax Deductions

Donations, Gifts, And Contributions

Donations made to approved institutions or organisations may qualify for tax deductions, often limited to 10 percent of your aggregate income.

The most important thing here is to keep official receipts that clearly show the approved donation category.

Professional Body Membership Subscriptions

If you pay membership fees to a professional body as part of your job, you may be able to claim them as a tax deduction.

This usually applies to professions where maintaining membership is required to practise, such as doctors, lawyers, accountants, architects, or engineers.

You can claim the actual membership subscription you paid during the year. There is no fixed maximum limit, as long as the membership is directly related to your profession.

For example:
If you paid RM800 for an accounting body membership, you can claim RM800.
If you paid RM1,200 for a legal professional body subscription, you can claim RM1,200.

Just make sure you keep your receipt or statement showing the membership payment in case LHDN asks for supporting documents later.

Part 3: Tax Rebates

Personal And Spouse Tax Rebate

If your chargeable income is RM35,000 or below, you may qualify for a RM400 tax rebate.

An additional RM400 rebate may also apply if your spouse has no income and you qualify for the relevant spouse relief.

Zakat And Fitrah

Zakat is a compulsory charitable contribution paid by Muslims, usually based on income or savings. Fitrah (also known as zakat fitrah) is a smaller contribution that Muslims pay once a year during the fasting month of Ramadan.

For tax purposes, zakat and fitrah payments can be used as a tax rebate. This means the amount you paid will directly reduce the tax you owe.

For example, if your final tax payable is RM1,200 and you paid RM300 in zakat, your tax payable would be reduced to RM900.

Just keep the receipt or proof of payment from the authorised zakat institution in case LHDN asks for it later.

Departure Levy Rebate For Religious Travel

This rebate applies to the departure levy, a government tax charged when leaving Malaysia by air.

It is different from airport passenger service charges, often called airport tax. The departure levy is a separate tax introduced by the government in 2019 and is usually included in the price of your flight ticket.

If you paid this levy when travelling for umrah or another recognised religious pilgrimage, you may claim a tax rebate equal to the amount of departure levy paid.

To support your claim, you should keep documents such as your boarding pass and any supporting documents related to the religious trip.

Before You Hit Submit

Before submitting your tax return, it’s worth taking a few minutes to double-check areas people commonly miss. Separating insurance categories properly, calculating SSPN net savings instead of total deposits, and remembering that the sports relief is separate from the general lifestyle relief can all make a difference.

If you’re filing for the first time, the process might feel a bit tedious, but once you understand how the relief categories work, it becomes much easier each year.

A simple way to approach it is to go through your receipts and spending from the past year and see what fits into the categories above. You might be surprised how many everyday expenses actually qualify for tax relief.

Once you’ve submitted your return, remember to keep your documents safely stored. Even if everything goes smoothly and you receive a refund, LHDN may still request supporting documents later on.

Taking some time now to review your reliefs properly can make filing season less stressful and may even put some money back in your pocket.

For a full breakdown of all the changes to tax reliefs for YA 2025, read our Income Tax Malaysia: What’s New for YA 2025? guide.

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Steffi Manisha Arokiam

Steffi Manisha Arokiam is a Tax Director at ThinkTX Consultants, where she leads the firm’s Transfer Pricing and e-Invoicing practice. She advises both individuals and corporations across a wide range of tax matters, including Real Property Gains Tax (RPGT), stamp duty, estate tax, and global mobility for expatriates. Recognised for combining strong technical expertise with a practical, solutions-driven approach, Steffi helps clients navigate complex tax issues with clarity and confidence.

A respected thought leader in taxation, Steffi has authored numerous technical articles and professional newsletters. Her work has been published by the International Bureau of Fiscal Documentation (IBFD) and Wolters Kluwer (CCH), and she has been featured on BFM 89.9 discussing crypto taxation.

 

Professional Affiliations

• Member of the Malaysian Institute of Accountants (MIA)
• Member of the Chartered Tax Institute of Malaysia (CTIM)
• ASEAN Chartered Professional Accountant (ASEAN CPA)
• Member of the International Fiscal Association (IFA)
• Professional Trainer certified by HRD Corp

As a trusted tax partner of RinggitPlus, Steffi reviews and verifies all content relating to Malaysian taxation to ensure it is accurate, up to date, and practical — helping readers better understand the tax system and make the most of their tax position.

About THE AUTHOR

Steffi Manisha Arokiam

Steffi Manisha Arokiam

Steffi Manisha Arokiam is a Tax Director at ThinkTX Consultants, where she leads the firm's Transfer Pricing and e-Invoicing practice. She advises both individuals and corporations across a wide range of tax matters, including Real Property Gains Tax (RPGT), stamp duty, estate tax, and global mobility for expatriates. Recognised for combining strong technical expertise with a practical, solutions-driven approach, Steffi helps clients navigate complex tax issues with clarity and confidence. A respected thought leader in taxation, Steffi has authored numerous technical articles and professional newsletters. Her work has been published by the International Bureau of Fiscal Documentation (IBFD) and Wolters Kluwer (CCH), and she has been featured on BFM 89.9 discussing crypto taxation.   Professional Affiliations

• Member of the Malaysian Institute of Accountants (MIA)
• Member of the Chartered Tax Institute of Malaysia (CTIM)
• ASEAN Chartered Professional Accountant (ASEAN CPA)
• Member of the International Fiscal Association (IFA)
• Professional Trainer certified by HRD Corp

As a trusted tax partner of RinggitPlus, Steffi reviews and verifies all content relating to Malaysian taxation to ensure it is accurate, up to date, and practical — helping readers better understand the tax system and make the most of their tax position.

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