Prime Minister Datuk Seri Anwar Ibrahim has announced an increase in individual income tax relief from RM9,000 to RM12,000 under Budget 2027, alongside proposed reductions in selected personal income tax rates.
Under the measures outlined in the Budget 2027 materials, the income tax rate for individuals with chargeable incomes between RM70,000 and RM100,000 will be reduced to 18%.
Meanwhile, those with chargeable incomes between RM100,000 and RM150,000 will see their income tax rate lowered to 24%.
The government will also expand individual tax relief for education and skills training to cover all fields of study, including children’s education and skills development.
In addition, lifestyle tax relief will be expanded to include sports equipment, as well as the maintenance and replacement of equipment from registered centres.
The measures form part of the Budget 2027 proposals aimed at easing taxpayers’ financial commitments while encouraging education, skills development and healthy lifestyles.
