Top Tax Reliefs Malaysians Should Claim in 2026

As we approach the Year of Assessment (YA) 2026, Malaysian taxpayers must stay informed about the latest tax reliefs available under Lembaga Hasil Dalam Negeri Malaysia (LHDN). Claiming the right reliefs can significantly lower your taxable income and help you keep more of your hard-earned money.

Here are the key tax reliefs you should know about this year, along with practical tips to maximise them.

 

Core Individual Reliefs & Family Reliefs

• Individual relief (self): RM 9,000. This is the base deduction for resident individuals.

• Spouse or dependent spouse relief: Typically RM 4,000 (or more, if spouse is disabled / no income) when you claim under joint assessment. 

• Disabled individual/spouse/child relief: Additional reliefs are provided to taxpayers, spouses, or children with disabilities, reflecting the government’s support for special-needs households.

Tip: If you’re married, have dependents, or support disabled family members, make sure to declare those reliefs carefully — they can meaningfully reduce your taxable income.
 

Education, Upskilling & Child-related Reliefs

• Education fees / Further education relief: Relief for tertiary/postgraduate education or approved upskilling courses continues to be available.

• Child relief: For children under 18 (or studying full-time), and additional reliefs for children in higher education.

• Childcare, daycare, preschool / after-school care & related fees: From YA 2026, childcare fee relief has been expanded. Taxpayers with children up to 12 years old (not just 6) may claim relief if the care is in a recognised childcare or after‑school centre.

This is especially useful for working parents balancing career and childcare — claiming correctly can reduce tax burden while supporting family needs.

 

Housing Loan Interest (First-Time Homeowners)

If you purchased your first residential property under certain conditions (price band eligible and SPA executed within the permissible period), you can claim relief on the interest paid on the home loan. This provides support for Malaysians aiming for homeownership. 

This relief remains a powerful tool for first-time homeowners — especially for young professionals looking to buy their first property.

 

Medical, Health, Disability & Lifestyle Reliefs

2026 sees several significant expansions to health- and lifestyle-related tax reliefs:

• Medical expenses, serious illnesses, fertility treatment, vaccinations, and other essential medical costs – many of these remain claimable under individual tax relief. 

• Life insurance / medical / takaful premium payments (self, spouse, children) — from 2026, the scope has been expanded to include children under eligible policies. 

• Green living & sustainability‑related reliefs (for example, purchase of EV‑charging equipment, approved green home appliances/items like food‑waste grinders) — part of the government’s push towards environmental awareness, and claimable under lifestyle/green‑incentive reliefs. 

These changes reflect evolving lifestyle needs — from healthcare to sustainability — making tax reliefs more inclusive and relevant for modern Malaysian households.

 

How to Claim: Filing via E‑Filing & Documentation Tips

• Starting in 2025, individual tax filing is done online through e‑filing; manual or hard‑copy submissions are no longer accepted. 

• Always keep receipts and supporting documents (invoices for insurance, tuition, medical bills, childcare fees, property financing, green purchases, etc.) — LHDN may require these for verification.

• Plan ahead: many reliefs require payments to be made before 31 December of the relevant year to qualify for that year’s assessment. 

Example: How Much You Could Save

Suppose you are a working individual claiming:

• Individual relief (RM 9,000)

• Spouse relief (RM 4,000)

• Childcare/daycare fees (if eligible)

• Life insurance premium (self + spouse or children)

• Medical expenses or green‑home appliance relief

Combined, these deductions can substantially reduce your chargeable income, leading to lower tax payable and potentially a higher tax refund if you’ve had monthly deductions (PCB) from your salary.

 

Final Thoughts: Don’t Miss Out — Claim What You’re Entitled To

Budget 2026 introduces several important updates to Malaysia’s personal tax relief framework — including expanded eligibility for childcare relief, insurance coverage, healthcare expenses, and sustainability‑related claims.

If you are a Malaysian resident and taxpayer, it’s worth reviewing your expenses before year-end to ensure you maximise your claims. Taking advantage of these tax reliefs can help ease the cost of living, support family needs, and encourage responsible spending (education, health, housing, and green living).

Stay organised: keep all receipts, submit via e‑filing on time, and claim every eligible relief to reduce your tax burden.

 

Summary of Key Tax Reliefs for 2026

Relief Category	What to Claim / Note
Individual & Dependent Relief	RM 9,000 + spouse/dependent reliefs
Disabled Individual/Family Relief	Extra deduction if taxpayer, spouse or child has disability
Education & Upskilling	Fees for tertiary education / approved courses
Childcare / Daycare / After-School Care	Up to children age 12 for registered centres
Life / Medical / Takaful Insurance Premiums	For self, spouse, children (with eligible policies)
Medical & Health Expenses / Vaccination	Eligible medical, screening & vaccination expenses
Housing Loan Interest (First Home)	Interest on first residential home loan under eligible SPA
Green & Lifestyle‑Related Reliefs	EV chargers, approved green home items, waste‑reduction tools

Do note: Tax laws may evolve, and reliefs for subsequent years can change. Always refer to official updates from LHDN (hasil.gov.my) or consult a qualified tax advisor for personalised guidance.

 

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References:
https://www.pwc.com/my/en/publications/mtb/personal-income-tax.html
https://www.ey.com/content/dam/ey-unified-site/ey-com/en-my/insights/tax/malaysia-budget-2025/documents/ey-tax-snapshots-budget-2026.pdf
https://www.sinardaily.my/article/730893/focus/national/childcare-tax-relief-expanded-to-cover-children-up-to-12-years-old-under-2026-budget
https://kpmg.com/xx/en/our-insights/gms-flash-alert/flash-alert-2024-237.html
https://www.malaymail.com/news/malaysia/2024/10/18/budget-2025-malaysians-heres-all-your-incoming-individual-income-tax-reliefs-and-if-you-are-a-worker-rm1700-minimum-wage-is-coming-too/154108