Malaysia Personal Tax Relief 2026: Complete Guide to Claiming Tax Reliefs

Every year, Malaysian taxpayers have the opportunity to reduce their taxable income by claiming eligible personal tax reliefs. Planning your expenses throughout the year can significantly reduce the amount of income tax payable when filing your annual tax return.

Following Budget 2026, several existing tax reliefs have been expanded, while certain temporary reliefs have also been reintroduced to encourage spending in targeted areas such as childcare, healthcare, domestic tourism and environmental sustainability.

This guide summarises the personal tax reliefs available for the Year of Assessment (YA) 2026 and highlights the latest changes announced under Budget 2026.

What Is Personal Tax Relief?

Personal tax relief is an allowable deduction from your aggregate income before your income tax is calculated.

Unlike tax rebates, which reduce the tax payable directly, tax reliefs reduce your chargeable income. The lower your chargeable income, the less income tax you pay.

For example:

• Annual income: RM90,000
• Total tax reliefs claimed: RM15,000
• Chargeable income: RM75,000

The tax is then calculated based on RM75,000 instead of RM90,000.

Key Budget 2026 Changes

Budget 2026 introduces several enhancements to existing personal tax reliefs. While no major new relief categories have been introduced, the Government has expanded the scope of several existing reliefs and increased the maximum claim limits for selected expenses.

1. Vaccination Relief Expanded

Previously, taxpayers could claim up to RM1,000 for prescribed vaccination expenses for themselves, their spouse or children.

From YA 2026, the relief is expanded to cover all vaccines registered with and approved by the Ministry of Health (MOH), giving taxpayers greater flexibility in claiming vaccination expenses.

2. Higher Relief for Learning Disability Assessment and Treatment

The maximum tax relief for expenses relating to the diagnosis and treatment of learning disabilities has increased from RM6,000 to RM10,000.

Qualifying expenses include:

• Assessment for diagnosing learning disabilities
• Early intervention programmes
• Rehabilitation treatment for learning disabilities

This relief applies to qualifying expenses incurred for the taxpayer, spouse or children.

3. Childcare Fee Relief Expanded

The existing childcare fee relief has been broadened significantly.

From YA 2026:

• Registered day-care centres are now eligible.
• Registered after-school transit centres are also included.
• The eligible child’s age has increased from below 7 years to below 13 years (up to 12 years old).

As before, this relief can only be claimed by one parent for the same child.

4. Insurance Relief Extended to Eligible Children

The existing tax reliefs for:

• Life insurance or takaful contributions; and
• Education and medical insurance premiums

have been expanded to include premiums paid for eligible children.

An eligible child is one who is:

• Below 18 years old and unmarried;
• 18 years old or above, unmarried and pursuing tertiary education; or
• An unmarried disabled child (no age limit).

This enhancement provides additional tax savings for families purchasing insurance coverage for their children.

5. Environmental Sustainability Relief Expanded

The existing RM2,500 environmental sustainability relief has been expanded.

In addition to electric vehicle charging facilities and household food waste composting machines, taxpayers may now also claim expenses for:

• Household food waste grinders; and
• Home Closed Circuit Television (CCTV) systems.

These new items are claimable once every two years and are available for YA 2026 and YA 2027.

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Summary of Budget 2026 Changes

Tax Relief	YA 2025	YA 2026 Enhancement
Vaccination	Prescribed vaccines only	Expanded to all MOH-approved vaccines
Learning disability expenses	Up to RM6,000	Increased to RM10,000
Childcare fees	Registered childcare centres for children up to 6 years	Expanded to registered day-care and after-school transit centres for children up to 12 years
Life insurance/Takaful	Taxpayer and spouse	Expanded to eligible children
Education & Medical Insurance	Taxpayer, spouse and children (existing scope)	Clarified eligibility conditions for children
Environmental sustainability	EV charging facilities and composting machines	Added household food waste grinders and CCTV (claimable once every two years)

See also our overview of MTD updates and key tax relief changes for context on prior-year adjustments.

Malaysia Personal Tax Reliefs for YA 2026

Types of relief	YA 2026
Self	9,000
Disabled individual – additional relief for self	7,000
Spouse	4,000
Disabled spouse – additional spouse relief	6,000
Child (for each):
– Below 18 years old	2,000
– Over 18 years old, and receiving full-time instruction (matriculation course / pre-degree / A-Level),	2,000
– Over 18 years old, and receiving full-time instruction at an establishment of higher education in Malaysia (diploma level and above) or outside Malaysia (degree level and above), or serving under article of indentures in a trade or profession	8,000
– Physically or mentally disabled child	8,000
– Disabled child who is receiving full-time instruction at an establishment of higher education in Malaysia (diploma level and above) or outside Malaysia (degree level and above), or serving under article of indentures in a trade or profession	16,000
Life insurance premiums or family takaful contributions (Expanded to contribution for children w.e.f. YA 2026) or voluntary contributions to Employee Provident Fund (EPF) or for both	3,000*
Voluntary or obligatory EPF contributions by individuals or civil servants	4,000*
Private retirement scheme contributions and deferred annuity (until YA 2030)	3,000*
Insurance premiums for education or medical benefits (self / spouse / children)	4,000*
Employee’s contribution to Social Security Organisation (SOCSO)	350*
Medical expenses for parents and grandparents: – Medical treatment – Dental treatment – Complete medical examination include any vaccination up to RM1,000 – Special needs or carer expenses	8,000*
Medical expenses for self, spouse or child: – Treatment for a serious disease for self, spouse or child – Fertility treatment for self or spouse – Vaccination for self, spouse or child (up to RM1,000) Expanded to all vaccines registered with the National Pharmaceutical Regulatory Agency (w.e.f. YA 2026) – Dental examination or treatment by dental practitioners registered with the Malaysian Dental for self, spouse or child (up to RM1,000) – Complete medical examination or disease detection fees, purchase of self-testing medical device, or mental health examinations or consultations for self, spouse or child (up to RM1,000). – Learning disability diagnosis and early intervention program and rehabilitation treatment for learning disability for children aged 18 years old or below. Increased from RM6,000 to RM10,000 (w.e.f. YA 2026)	10,000*
Fee expended for any course of study:  – up to tertiary level, other than a degree at Masters or Doctorate level, undertaken for the purpose of acquiring legal, accounting, Islamic financing, technical, vocational, industrial, scientific or technological qualification or skill – for a degree at Masters or Doctorate level undertaken for the purpose of acquiring any qualification or skill  – recognised by Director General of Skills Development, undertaken for the purpose of upskilling and self-enhancement, limited to RM2,000 (until YA 2026)	7,000*
Purchase of supporting equipment for disabled self, spouse, child or parent	6,000*
Lifestyle relief for self, spouse or child for: – purchase or subscription of books, journals, magazines, newspaper and other similar publications (hardcopy or electronic form) for the purpose of enhancing knowledge – purchase of personal computer, smartphone or tablet – internet subscription – fees for any other upskilling or self-enhancement courses	2,500*
Sports equipment and activities for self, spouse, child or parents: – Cost of purchasing sports equipment,  – Entry / rental fees for sports facilities, – Registration fees for sports competition, – Gym membership fees or sports training provided by registered sports clubs / societies / companies	1,000*
Purchase of breastfeeding equipment (once in every two YAs)	1,000*
Fees paid to childcare centre and kindergarten. Includes fees paid to registered care centres for children up to 12 years old (w.e.f. YA 2026)	3,000*
Deposit for child into the Skim Simpanan Pendidikan Nasional account, claimable by either parent (until YA 2027)	8,000*
Costs related to electric vehicle charging facilities, including installation, rental, hire-purchase of equipment, or subscription fees, or purchase of food waste composting machine** for household use (until YA 2027) Scope of expenses includes household food waste grinders** and closed-circuit television (CCTV)** for home use (w.e.f. YA 2026 to YA 2027) **limited to one purchase each	2,500*
Housing loan interest paid for the first 3 consecutive YAs on residential property (purchased between 1 January 2025 to 31 December 2027) with value of:
– RM500,000 and below	7,000*
– RM500,000 – RM750,000:	5,000*
Entrance fees to tourist attractions, or arts and cultural programmes (YA 2026 only)	1,000*

^{* Maximum relief}

Tips to Maximise Your Tax Relief

Before the end of the year, consider reviewing whether you have fully utilised available reliefs.

Common planning opportunities include:

• Making additional PRS contributions if eligible.
• Reviewing education and medical insurance coverage.
• Keeping receipts for lifestyle purchases.
• Recording eligible medical expenses throughout the year.
• Updating your TP1 form with your employer if you wish to reduce your monthly PCB deductions based on eligible reliefs.

FAQ: 2026 Personal Tax Reliefs

1. Who is eligible to claim personal tax reliefs in Malaysia? 

Individuals who are tax residents in Malaysia for the relevant Year of Assessment (YA) may claim personal tax reliefs, provided they meet the qualifying conditions for each relief.

2. Can both parents claim childcare fees?

No. The childcare fee relief can be claimed by only one parent for the same child.

3. Do tax reliefs reduce my monthly PCB?

Yes. If you submit a completed TP1 form to your employer, eligible reliefs may be considered when calculating your Monthly Tax Deduction (PCB), reducing your monthly tax deductions where applicable.

4. Do I need to submit receipts when filing my tax return?

No. You do not submit receipts together with your tax return.

However, you must keep all supporting documents, such as receipts, invoices and payment records, in case LHDN requests them during a tax audit.

Supporting documents should generally be retained for at least seven years from the end of the relevant Year of Assessment.

5. Do foreign employees (expatriates) benefit from these tax reliefs?

Tax reliefs under Malaysia’s income tax system generally apply to tax residents. Foreign employees who qualify as tax residents (residing ≥182 days in a calendar year) are typically eligible for the same personal reliefs as Malaysian citizens. Non-resident employees are subject to a flat tax rate and do not benefit from these reliefs.

6. What happens if I claim a relief that I am not entitled to?

If LHDN finds that a relief was incorrectly claimed, you may be required to pay the additional tax due, together with any applicable penalties or late payment charges.

Always ensure you satisfy the qualifying conditions before making a claim.

7. What is the difference between a tax relief and a tax rebate?

A tax relief reduces your chargeable income before tax is calculated.

A tax rebate reduces the actual tax payable after the tax has been calculated.

Final Thoughts

Malaysia’s personal tax relief system offers numerous opportunities for taxpayers to legally reduce their tax burden. By understanding the available reliefs, maintaining proper documentation and planning eligible expenses throughout the year, taxpayers can maximise their tax savings while remaining fully compliant with LHDN requirements.

As tax reliefs may change with each annual Budget, taxpayers should always refer to the latest LHDN guidance before filing their income tax return.

Disclaimer: This article is for general HR and payroll information only and does not constitute legal, tax or professional advice. Employers should refer to the latest official guidance from LHDN, JTKSM and the applicable Malaysian laws, or seek professional advice for specific cases.