Rental Income Tax Calculator Malaysia 2026
Rental Details
Number of months the property is tenanted (0–12).
Resident: 182+ days in Malaysia. Non-resident: flat 30% on adjusted rental.
Employment/business income — determines your marginal tax bracket for rental income.
Allowable Deductions
Section 33–34 ITA 1967 • PR 12/2018
For subsequent tenants only. Initial agent fee is a capital cost (not deductible).
Tax Breakdown
Rental Income
Tax Payable on Rental
Monthly Breakdown
Resident vs Non-Resident
Tax Rate Reference
Resident Progressive Rates (YA 2024–2025)
| Chargeable Income (RM) | Rate |
|---|---|
| 0 – 5,000 | 0% |
| 5,001 – 20,000 | 1% |
| 20,001 – 35,000 | 3% |
| 35,001 – 50,000 | 6% |
| 50,001 – 70,000 | 11% |
| 70,001 – 100,000 | 19% |
| 100,001 – 400,000 | 25% |
| 400,001 – 600,000 | 26% |
| 600,001 – 2,000,000 | 28% |
| Above 2,000,000 | 30% |
Non-Resident Rate
| Type | Rate |
|---|---|
| All rental income | 30% flat |
Applied on adjusted rental (gross minus source deductions). Non-residents cannot claim personal reliefs (s.46) or rebates.
Allowable Deductions (s.33–34)
| Expense | Deductible? |
|---|---|
| Assessment tax (cukai taksiran) | Yes |
| Quit rent (cukai tanah) | Yes |
| Loan interest (interest only) | Yes |
| Fire insurance premium | Yes |
| Maintenance/management fees | Yes |
| Repairs & maintenance | Yes |
| Agent commission (subsequent) | Yes |
| Initial agent fee / legal fees | No (capital) |
| Capital improvements | No |
Source: LHDN Tax Rates • Public Ruling 12/2018 • LHDN Non-Resident
Related: Net Cashflow Calculator • Stamp Duty Calculator • RPGT Calculator
About This Rental Income Tax Calculator
This calculator computes the income tax you owe on Malaysian rental income under Section 4(d) of the Income Tax Act 1967. It applies the correct tax treatment for both residents (progressive rates from 0% to 30%) and non-residents (flat 30%), and deducts allowable expenses per Sections 33–34 and Public Ruling 12/2018.
Rental income in Malaysia is taxed as part of your total chargeable income — it's added on top of your employment or business income and taxed at your marginal rate. This means a landlord earning RM 80,000 in salary who collects RM 24,000 in annual rent pays tax on rental at the 19–25% bracket, not at the lowest rates. Non-residents (those spending fewer than 182 days in Malaysia) face a flat 30% on adjusted rental income, with no personal reliefs or rebates available.
The calculator includes all major allowable deductions recognized by LHDN: maintenance fees, loan interest (interest portion only, not principal), assessment tax, quit rent, fire insurance, repairs, and agent commission for subsequent tenancies. For more details on deductible expenses and filing requirements, see our Rental Income Tax Guide.
How Rental Tax Is Calculated
Formula: Taxable Rental = Gross Rent − Allowable Deductions. For residents, this amount is stacked on top of other income and taxed at the applicable marginal bracket. For non-residents, a flat 30% applies to the net rental amount. The effective tax rate on rental income depends heavily on your total income bracket and the deductions you claim — investors with higher mortgage interest payments and maintenance fees pay significantly less tax on net rental.
Worked Examples
Example 1: Resident, RM 2,000/Month Rent, RM 60K Salary
| Gross Annual Rental | RM 2,000 × 12 = RM 24,000 |
| Deductions (maintenance RM 200/mo + assessment RM 500/yr) | RM 2,900 |
| Net Rental Income | RM 21,100 |
| Total Income (salary + rental) | RM 60K + RM 21.1K = RM 81,100 |
| Marginal Tax Rate on Rental | 19% (RM 70K–100K bracket) |
| Tax on Rental | RM 21,100 × 19% = RM 4,009 |
| Effective Rental Tax Rate | 16.7% |
Example 2: Non-Resident, RM 3,000/Month Rent
| Gross Annual Rental | RM 3,000 × 12 = RM 36,000 |
| Deductions (maintenance RM 350/mo) | RM 4,200 |
| Net Rental Income | RM 31,800 |
| Tax Rate | 30% flat |
| Tax Payable | RM 31,800 × 30% = RM 9,540 |
| Net After Tax (monthly) | (RM 36K − RM 4.2K − RM 9,540) ÷ 12 = RM 1,855 |
Example 3: Resident, RM 1,500/Month Rent, RM 40K Salary (Lower Bracket)
| Net Rental Income | RM 1,500 × 11 months − RM 1,800 deductions = RM 14,700 |
| Total Income | RM 40K + RM 14.7K = RM 54,700 |
| Marginal Rate on Rental | 11% (RM 50K–70K bracket) |
| Tax on Rental | RM 4,700 × 11% = RM 517 |
| Effective Rental Tax Rate | 3.5% |
Lower-income earners benefit significantly — rental income taxed at 3–11% vs the 30% non-resident rate.
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