Budget 2027: Lower income tax for RM70,000 to RM150,000 range

PETALING JAYA: Individual income tax rates for resident taxpayers in the RM70,000 to RM150,000 chargeable income range will be reduced by one percentage point.

Prime Minister Datuk Seri Anwar Ibrahim said this means those with chargeable income of RM70,001 to RM100,000 will pay a lower rate of 18%, while those earning between RM100,001 and RM150,000 will be taxed at 24%.

He added that the income tax rate for high-income earners with taxable income exceeding RM1mil will be adjusted to 30%.

This means that the increase in tax reliefs and the reduction in individual income tax rates will provide up to RM1,600 in additional disposable income to approximately five million taxpayers.

More to come