Malaysia Personal Income Tax Reliefs YA 2027: What You Can Claim and How Much

Budget 2027 proposes the biggest reshuffle of Malaysia's personal reliefs in years. The individual relief would rise from RM 9,000 to RM 12,000, the first increase since 2010, and several categories gain new items: postnatal care, AI subscriptions, pet adoption and vaccination, sports shoes and children's tuition.

YA 2027 covers income and eligible spending in calendar 2027, which you declare in 2028. The Finance Ministry's tax measures annex dates every relief change "from the year of assessment 2027". As of 2 November 2026, these are Budget proposals that still have to pass through the Finance Bill before LHDN builds them into the forms and payroll tables.

A relief reduces the income you are taxed on, so its value depends on your tax band. For example, RM 1,000 of eligible relief that falls entirely within the proposed 18% marginal band for YA 2027 cuts your income tax by RM 180 before other effects.

Use this guide to organise 2027 spending you were going to make anyway; buying something just for a deduction usually leaves you worse off. For the proposed brackets and rate-cut maths, see our companion guide, Malaysia Income Tax Rates and Brackets for YA 2027: Proposed Changes and Calculations.

Source: HASiL individual guidance, HASiL rebates (as of 2 November 2026)

Complete YA 2027 relief table grouped by life stage

The tables cover the main individual relief categories for YA 2027, with a status column showing whether each one changes, continues or reaches its final year. A spending cap is usually the lower of what you spent on qualifying items and the maximum shown. Unchanged categories follow the 2026 MTD specification's relief schedule, read with the Finance Act 2025 (Act 874).

Selected YA 2027 relief categories, with the proposed RM 12,000 individual relief and shared ceilings.

Personal and family categories

Source: MOF Budget 2027 tax measures, Appendices 2 to 4, MTD2026, PR7/2025, Finance Act 2025 (as of 2 November 2026)

Spending, savings and contributions

Source: MOF Budget 2027 tax measures, Appendices 5 to 9, ANC Individual Tax Handbook 2025/2026, EPF benefits, Finance Act 2025 (as of 2 November 2026)

What's new in YA 2027 compared with YA 2026

Budget 2027 was tabled on 9 October 2026. Most changes widen what a category covers; the big exception is the RM 3,000 increase in the individual relief.

Source: MOF Budget 2027 tax measures, Appendices 2 to 9 (as of 2 November 2026)

Budget 2027 doesn't propose another extension for SSPN relief, which runs from YA 2025 to YA 2027. The environmental and home-safety items also reach the end of their windows in YA 2027, so treat 2027 as the last year to plan around them unless a later budget extends them.

Personal, spouse and child reliefs

A new child, a child starting university or a spouse returning to work can all change these claims, so use last year's return as a starting point only.

Individual relief rises to RM 12,000

The individual amount is a status-based deduction, so no spending or receipt is involved.

The extra RM 3,000 reduces chargeable income, so it's worth your marginal rate on that slice. Say your chargeable income would be RM 71,000 with the old amount. The higher relief brings it to RM 68,000, removing RM 1,000 taxed at 18% and RM 2,000 taxed at 11%: RM 180 + RM 220 = RM 400.

Spouse relief and joint assessment

Spouse relief depends on income and assessment arrangements, and legally required alimony to a former wife shares the RM 4,000 spouse ceiling. A working spouse assessed separately does not qualify, and foreign-source income can also affect eligibility.

Joint assessment combines both spouses' income and limits deductions to the assessed individual's ceilings. Compare the total household tax under each option before choosing.

Children and qualifying students

An unmarried child under 18 normally attracts the RM 2,000 child amount. For older children, the amount depends on whether they are in full-time preparatory study or qualifying further education. Keep evidence of the course level and the institution's approval.

The higher child amount generally covers diploma level and above in Malaysia, degree level and above overseas, or qualifying articles or indentures in Malaysia. A disabled child can qualify for the disability amount plus the further-education addition if the conditions are met. These replace the ordinary child amount.

Where both parents could claim, agree who takes the child deduction and file consistently. The statutory shared-entitlement rule can limit each claimant to 50%, including in some divorced-parent situations.

Disability and assistive devices

JKM recognition supports disability-related claims, and ordinary spectacles or optical lenses are excluded from basic supporting equipment. None of these amounts changes under Budget 2027.

Health and well-being, parents and care reliefs

The medical category gets a new name and a new item. The annex renames it health and well-being, keeps the RM 10,000 ceiling and adds postnatal care up to RM 3,000. Parents' and grandparents' costs stay in their own RM 8,000 category.

What sits inside the RM 10,000 health and well-being ceiling

Source: MOF Budget 2027 tax measures, Appendix 4, TP1 2026 notes, Finance Act 2025 (as of 2 November 2026)

Because the subcaps sit inside one total, a large bill can use up the room for everything else. For example, RM 8,500 of eligible rehabilitation plus RM 3,000 of eligible serious-disease treatment adds up to RM 11,500 of qualifying costs, capped at RM 10,000 in total.

Postnatal care and breastfeeding equipment

Say a new mother pays a confinement centre RM 4,200 in 2027, buys a breast pump and storage set for RM 1,150, and pays RM 600 for the baby's vaccinations. Under the proposal, she claims RM 3,000 for postnatal care, RM 1,000 for breastfeeding equipment and RM 600 for vaccination: RM 4,600, within the RM 10,000 ceiling.

The details published so far don't define "qualified individual" or say whether the confinement centre must be registered, and it doesn't say whether breastfeeding equipment keeps its once-every-two-years rule. Ask the provider for an itemised invoice with its business or registration details.

Parents, grandparents and all types of care

From YA 2027, the RM 8,000 category is proposed to cover all types of care for parents and grandparents, including home, day and residential care, and no longer needs a registered medical practitioner to certify their condition. You still need receipts plus a written declaration from the carer or a copy of the carer's work permit, and the carer cannot be you, your spouse or your children.

Under current rules, full checkups and vaccination for parents sit in a RM 1,000 subcap; the annex doesn't say whether that subcap carries over unchanged into YA 2027.

If siblings share the care, keep a payment trail for your own share; general household costs you cover for your parents are not care costs.

Education, lifestyle and sports reliefs

Education and skills training fees: RM 7,000

The education category is renamed education and skills training fees, keeps its RM 7,000 cap and drops the subject restriction. Your own certificate, diploma, bachelor's, master's or doctoral studies in any field can qualify, at recognised institutions or professional bodies. Two subcaps sit inside the RM 7,000:

TVET upskilling for you or your spouse: up to RM 3,000, for courses recognised under the National Skills Development Act 2006 (Act 652).

Other courses, or children's tuition: up to RM 2,000 shared between non-work courses for you or your spouse and your child's STEM, arts, language or religious classes or tuition.

The upskilling courses that sat under lifestyle relief move here too. For example, a RM 3,600 TVET course gives RM 3,000. Your child's RM 1,500 coding class and your own RM 800 pottery class add up to RM 2,300, capped at RM 2,000. That's RM 5,000 in total; if you also paid RM 4,000 of master's fees, the RM 9,000 of eligible costs would be capped at RM 7,000.

Lifestyle: RM 2,500 with AI and pet items

The main lifestyle list covers reading materials, eligible personal computers, smartphones and tablets, and internet bills in your name. For YA 2027 the annex adds AI software and app subscriptions for you, your spouse or your child, pet adoption from registered shelters, and vaccination, spaying or neutering by a registered vet. The cap stays at RM 2,500.

A company-paid AI licence or business device isn't a personal purchase. Ask for a receipt that names the item.

Sports: RM 1,000 with sports shoes up to RM 300

Sports relief covers equipment, facility rental or entry fees, competition registration and gym or training fees for you, your spouse, your child or your parents. From YA 2027, sports shoes are added with a RM 300 subcap inside the RM 1,000 total. Sports clothing still isn't listed.

Where an invoice mixes eligible and ineligible items, mark the split on your copy and claim only the qualifying part.

Receipt-allocation worksheet using proposed YA 2027 limits for sports shoes and postnatal care.

Tourism and cultural entrance fees

The RM 1,000 relief for tourist-attraction and cultural or arts programme entrance fees was written into law for YA 2026 only. Budget 2027 proposes extending it for one more year, to YA 2027, to support Visit Malaysia Year 2026, which runs into 2027. Keep the admission receipt; hotel stays and travel packages aren't covered.

Registered childcare

Registered childcare centre or kindergarten fees cover children aged six and below, while centres registered under the Care Centres Act 1993 cover children aged twelve and below. The amendment applies from YA 2026 with no end year, and Budget 2026 made the RM 3,000 relief permanent. Informal babysitters and unregistered after-school providers do not qualify.

Only one spouse in a married household assessed separately can claim childcare relief, and the ceiling stays the same however many children you have.

EPF, insurance, SOCSO, PRS and SSPN

Ask your insurer for the tax-relief breakdown, because a combined premium is usually split across different fields.

EPF and life insurance

EPF describes the RM 4,000 contribution allocation and the RM 3,000 life/takaful or additional voluntary-EPF allocation. Employer contributions are not a personal payment you can claim.

For example, employee mandatory EPF of RM 5,200 supports a claim of RM 4,000 in that bucket. Eligible life premiums of RM 1,800 leave RM 1,200 of the second bucket for additional voluntary EPF, if you actually paid it. The extra RM 1,200 of mandatory contributions cannot be moved across.

Since YA 2026, life-insurance relief also covers policies on qualifying children, with no end year. The definition includes children under 18, older children in full-time study, qualifying articles or indentures and children with a disability.

Medical and education insurance

Medical-card premiums go under insurance, while treatment invoices go under health and well-being. Claim only what you paid, using the insurer's breakdown when riders share one premium.

SOCSO and the new LINDUNG top-up

The RM 350 relief continues for employee SOCSO and EIS contributions, and the annex brings mandatory LINDUNG KENDIRI contributions for passenger transport, goods and food transport and hawkers within it. A further RM 150 is proposed for voluntary LINDUNG 24 Jam contributions and LINDUNG KENDIRI contributions in the 17 sectors where it isn't compulsory. Keep the PERKESO contribution statement.

PRS

PRS is an approved supplementary retirement scheme, and Budget 2025 extended its RM 3,000 relief for five years, to YA 2030. Weigh its withdrawal restrictions and fees as well as the deduction.

SSPN: the last year of the current window

PTPTN lets eligible parents, adoptive parents or legal guardians claim qualifying net SSPN savings for a child, up to RM 8,000. The current extension runs from YA 2025 to YA 2027, and Budget 2027 doesn't propose another. Saving in your own name does not qualify.

Eligible tertiary-fee withdrawals are excluded from the net-savings reduction, with fee receipts retained for audit. Other withdrawals generally reduce net savings. For example, RM 6,000 deposited and RM 1,500 withdrawn for ordinary spending leaves RM 4,500 of net savings. If the same RM 1,500 paid qualifying tertiary fees, the full RM 6,000 would still count.

First-home interest and home-safety reliefs

First-home loan interest

First-home relief applies to eligible interest where the SPA is signed between 1 January 2025 and 31 December 2027. You must be a Malaysian citizen and resident, the property must be your first residential property, and it must not generate income. Principal repayments do not qualify.

The annual maximum is RM 7,000 for a price up to RM 500,000, or RM 5,000 for a price above RM 500,000 up to RM 750,000. Relief runs for three consecutive assessment years beginning when qualifying interest is first paid, so a buyer who first paid interest in 2026 claims for YA 2026, 2027 and 2028. Ask your bank for an annual interest statement.

If co-owners' combined interest exceeds the ceiling, the ceiling is split between them.

Environment and home safety: RM 2,500 shared

YA 2027 is the final year for every item in this category under current law:

EV charging for your own vehicle, covering purchase, installation, rental or subscription, runs until YA 2027.

Household compost machines can be claimed once across YA 2025 to 2027.

Food-waste grinders and home CCTV, purchase or installation, can be claimed once across YA 2026 and 2027.

If you claimed a CCTV system for YA 2026, a second one bought in 2027 doesn't qualify, so note earlier claims next to the receipt.

Calculate savings from a YA 2027 relief claim

Your marginal rate sets the basic benefit. The table uses the proposed YA 2027 resident schedule, assumes the whole deduction falls within one band and ignores rebates and special treatments.

Source: MOF Budget 2027 tax measures, Appendix 1 (as of 2 November 2026)

Multiplying by your band overstates the saving when a deduction crosses a threshold.

Relief reduces chargeable income; at proposed YA 2027 rates, RM 2,000 saves RM 120 to RM 360, or RM 290 when it crosses a band.

Say your chargeable income before an extra RM 2,000 claim is RM 71,000. The first RM 1,000 removed would have been taxed at 18%, and the next RM 1,000 at 11%. The reduction is RM 180 + RM 110 = RM 290, not RM 360.

A single employee and a parent compared

Take two resident employees, each earning RM 84,000 of taxable employment income in 2027, with no other income, deductions or rebates. Both pay mandatory EPF above RM 4,000. The parent has two children: one in registered childcare and a newborn. The parent takes both child reliefs, pays RM 2,400 of eligible childcare fees, RM 2,500 of postnatal care and RM 3,000 of net SSPN savings, and claims no spouse relief. The spouse's own tax is not included.

Source: MOF Budget 2027 tax measures, Appendices 1, 2 and 4, MTD2026 relief schedule (as of 2 November 2026)

Both stay in the 11% band. Tax on the first RM 50,000 is RM 1,500 under the proposed schedule. The single employee pays RM 1,500 + RM 18,000 × 11% = RM 3,480. The parent pays RM 1,500 + RM 6,100 × 11% = RM 2,171. The parent's tax is RM 1,309 lower, which is the extra RM 11,900 of relief × 11%. Any refund depends on the PCB deducted during 2027.

How to claim YA 2027 reliefs in MyTax e-Filing

The YA 2027 forms open in 2028, and LHDN sets the exact fields and filing dates then.

Choose the correct assessment year and form. A resident with no business uses BE; a resident carrying on business uses B. Select YA 2027 for 2027 income and spending once it is available.

Reconcile income and payment dates. Keep receipts dated in 2026 and 2028 in separate folders.

Enter statement-backed contributions. Compare EPF, insurer, SSPN and PERKESO statements with your worksheet. Split premiums by type and leave out amounts already claimed elsewhere.

Check pre-filled figures. If your return arrives with relief figures pre-filled from e-invoices, check each one against your own records before you accept it.

Apply eligibility and caps. Check each subcap, who in the household is claiming and any once-per-window rules.

Review tax and PCB. Tax payable is calculated after reliefs and rebates, then reconciled with tax paid. You get a refund only if you paid more than that final figure.

Save the return and evidence. HASiL's practical guidance says to keep supporting records for seven years from the end of the filing year. If you file in 2028, keeping records until the end of 2035 is a safe target.

YA 2027 claiming workflow, from eligible 2027 payment to the 2028 return and retained evidence.

Ask for e-invoices on 2027 purchases

LHDN is asking buyers to request e-invoices for relief expenses by giving the seller their MyKad number or tax identification number. Its pilot uses e-invoice data to pre-fill YA 2026 returns for categories such as computers and smartphones, lifestyle purchases, insurance and childcare fees, and you can review the e-invoices in the MyInvois portal. LHDN hasn't said how pre-fill will work for YA 2027, but asking for e-invoices on 2027 relief purchases gives you a second record.

Name each folder with the assessment year and the claimant. Keep readable digital copies of thermal receipts, and make sure your evidence shows what the expense was and why it fits the category.

Common mistakes with YA 2027 claims

Most errors come from the wrong year or the wrong category.

Claiming 2026 purchases under new items: sports shoes, an AI subscription or a pet's vaccination paid in December 2026 belong to YA 2026, when those items weren't claimable. The new items only cover eligible spending in 2027.

Using the YA 2026 upskilling cap: the RM 2,000 upskilling subcap ends with YA 2026. For YA 2027, sort courses into TVET (RM 3,000) or other courses (RM 2,000 shared with children's tuition).

Claiming breastfeeding equipment twice: it now sits inside health and well-being, so don't also enter it as a separate item from an older checklist.

Repeating once-per-window items: a grinder or CCTV claimed for YA 2026, or a compost machine claimed for YA 2025 or 2026, can't be claimed again in YA 2027.

Planning SSPN beyond 2027: relief for YA 2028 depends on a future budget, so don't count it in long-term plans yet.

Who paid: leave out costs your employer bore in full.

Rebates are a separate step. Zakat and fitrah paid to the recognised religious authority reduce tax charged, subject to the tax limit, so give them their own column in your worksheet, away from expenditure-based reliefs.

Status of the Budget 2027 relief changes

As of 2 November 2026, the YA 2027 relief changes are proposals in the Finance Ministry's tax measures annex. They take legal effect once Parliament passes the Finance Bill, and LHDN then reflects them in the 2027 payroll tables and the YA 2027 return. Details such as postnatal provider definitions and TVET recognition rules may come in the bill or later LHDN guidance. Until then, keep itemised receipts for anything that could fall under the new items. Unchanged categories, from spouse and child relief to EPF, PRS, SSPN and first-home interest, already have a legal basis for YA 2027.

FAQs

What tax reliefs can I claim for YA 2027 in Malaysia?

The proposed RM 12,000 individual relief, plus family, health, parents' care, education, lifestyle, sports, tourism, EPF, insurance, PRS, SSPN, SOCSO, first-home interest and environment categories. Each has its own limit and conditions.

Is the RM 12,000 individual relief confirmed?

It is proposed in Budget 2027 for YA 2027. As of 2 November 2026, the Finance Bill that would enact it hasn't been passed, so check LHDN's YA 2027 guidance before filing. It doesn't apply to the YA 2026 return you file in 2027.

When do I file my YA 2027 tax return?

In 2028. LHDN announces the filing dates each year.

Can I claim a 2026 purchase on my YA 2027 return?

No. Relief follows the year in which you paid. A purchase paid in 2026 belongs to YA 2026, even if the item only becomes claimable from YA 2027.

Are sports shoes tax deductible in 2027?

Yes, under the proposal. Sports shoes for you, your spouse, your child or your parents count up to RM 300, inside the RM 1,000 sports relief.

Can I claim ChatGPT or other AI subscriptions?

Personal-use AI software and app subscriptions for you, your spouse or your child are proposed under the RM 2,500 lifestyle relief from YA 2027.

Can I claim tax relief for my pet?

Partly. Adopting from a registered shelter, and vaccination, spaying or neutering by a registered vet, are proposed lifestyle items. Food, grooming and boarding are not.

How much can I claim for confinement or postnatal care?

Up to RM 3,000 for postnatal care by a confinement centre or qualified individual, inside the RM 10,000 health and well-being ceiling. Keep the provider's invoice and details.

Can I claim my child's tuition fees?

Yes, for STEM, arts, language or religious classes or tuition, up to RM 2,000. That RM 2,000 is shared with your own or your spouse's non-work courses, inside the RM 7,000 education cap.

Is SSPN tax relief still available in YA 2027?

Yes. YA 2027 is the last year of the current YA 2025 to 2027 window, and Budget 2027 doesn't propose an extension.

Can I still claim EV charger costs in 2027?

Yes, within the RM 2,500 environment and home-safety relief, for your own vehicle. YA 2027 is the final year under current law.

Can I claim a caregiver for my parents?

Under the proposal, yes: home, day and residential care all count within RM 8,000, with no medical certification. You need receipts and a carer declaration or work permit copy, and the carer can't be you, your spouse or your children.

Can I claim EPF and life insurance together?

Yes. EPF has a RM 4,000 ceiling and life insurance or takaful a RM 3,000 ceiling, for RM 7,000 combined. Each contribution goes in one bucket only.

How much tax does RM 3,000 of relief save in YA 2027?

At the proposed rates, a full RM 3,000 deduction within the 6%, 11%, 18% or 24% band cuts income tax by RM 180, RM 330, RM 540 or RM 720 respectively.

Do non-residents get these reliefs?

No. Non-residents do not receive the ordinary resident personal-relief treatment. Residence depends on the statutory tests, not citizenship.

Start your YA 2027 relief folder now

Most YA 2027 claims depend on paperwork you collect during 2027. Set up one folder per category and claimant in January, note which items are new or in their final year, and check LHDN's final YA 2027 guidance before you file in 2028.