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MY

Tax relief is basically the government’s way of rewarding smart financial behaviour – think of it as benefits for responsible adulting. Whether you are contributing to EPF (Employee's Provident Fund), supporting parents, upskilling or even staying fit with a gym membership, these actions can reduce your chargeable income and help you build wealth more efficiently.

 

But here's the catch: you need to spend and keep the receipts before December 2025 to claim them in your YA2026 tax filing.

 

Let's break down what you can claim and how to make the most of it.

What can you claim?

Low effort wins: Reliefs most salary earners can claim

If you are working a 9 – 5, these are considered almost guaranteed (for most).

Relief

Max Amount

Notes
Individual - Self RM9,000

Automatically granted. Add a RM7,000 if you're a disabled individual.

EPF contribution & life insurance premium

Up to RM7,000 combined

 

(EPF RM4,000 +

Life insurance RM3,000)

If you are a salaried worker, EPF is likely auto-deducted.
Employee contribution to Social Security Organisation (SOCSO) RM350 Check your payslip – if it's deducted, you can claim it

Medical expenses

(Self / Spouse / Child)

RM10,000 Include serious disease treatment, fertility treatment, vaccination, dental examination and medical check-up.
Education / Skill courses fee RM7,000 For approved upskilling or professional courses.
Supporting parents (Medical) RM8,000 For medical, dental treatments, medical examination and special needs or carer expenses of parents / grandparents.

Other quick wins

Here’s a laundry list of other reliefs that you can bag before end of the year.

Relief

Max Amount

Notes
Voluntary / Obligatory EPF and pension schemes contributions Up to RM4,000 combined

Top up your EPF before year-end.

Insurance premiums for education / medical benefits Up to RM4,000 combined 🎉 Increased limit from YA2025.
Private Retirement Scheme (PRS) and deferred annuities premiums Up to RM3,000 combined

Two birds with one stone! Enjoy this relief as you save for your retirement.

 

No PRS account? Visit the nearest CIMB branch to open one now.

Savings deposited into Skim Simpanan Pendidikan Nasional (SSPN) Up to RM8,000 Claimable by either parent.

Reliefs that depend on your lifestyle and situation

Good to know in case these applies to you or future you. Check out LHDN’s website for the fine prints as you plan ahead.

Relief

Max Amount

Notes
First-home loan interest Up to RM7,000 (subject to loan amount)

Applicable for first residential home loan for sales and purchase agreement executed from 2025 - 2027.

Lifestyle

(Books, gadgets, internet, sports)

RM2,500 Purchase of books, gadgets, internet bills, smartphones, etc.
Childcare fees for child ≤ 6 years old RM3,000

Raising a child can be pricey – remember to claim if you have fees paid to registered child care centre (TASKA) / kindergarten (TADIKA), claimable by each parent.

 

🎉 Great news: This relief has been extended until YA2027. 

Breastfeeding equipment RM1,000
Claimable once every 2 years.
Sports equipment / Gym fees RM1,000 Adopt that healthy lifestyle now 🏋️.
Electric vehicle / Green tech RM2,500 Now expanded to include food waste composting machines for household use, claimable once every 3 years.
Spouse / Alimony RM4,000 If your spouse has no income or for alimony payments.
Disabled individual (Additional relief)

RM6,000 (Spouse)

 

RM8,000 (Unmarried child)

🎉 Relief amounts increased effective YA2025.

 

If the child is over 18 years of age and currently pursuing full-time higher education, additional RM8,000 relief is claimable.

Child

Per unmarried child

 

• < 18 years old: RM2,000

 

• > 18 years old: Up to RM8,000

Relief for child over 18 years old is only applicable for child that are receiving full-time instruction at

 

• school, college, university or similar establishment; or

 

• establishment of higher education; or

 

• serving under articles / indentures in a trade / profession in Malaysia.

What you should do now (before 31 December 2025)

Don’t wait until the filing season to panic. Check out the action plan below and get moving:

Checklist Things To Do Notes
Collect receipts  Medical bills, education fees, lifestyle purchases.
Review EPF and insurance statements These are guaranteed claims.
Plan big purchases

Laptops, gym gear, books and check the fine print again to make sure it falls under the “lifestyle relief” bucket.

Support for parent / grandparent If you’re paying for their medical, dental, vaccination or carer services (require medical certification), keep the invoices.
Track childcare / education costs  Make sure they qualify under registered providers.
Consider green upgrades  If you were eyeing for EVs or home eco tech, consider getting it as a Christmas gift this year.

Why it matters for wealth planning

Tax relief isn't just about saving money — it's a strategic lever in your wealth plan. Every ringgit saved in taxes is a ringgit you can reinvest, save or use to protect your future. Over time, these savings compound and can significantly boost your net worth.

The bottom line

Start with the low effort wins. Then, explore reliefs tat match your lifestyle or life stage. With a bit of planning, you might even score a tax refund.

 

For the complete list and requirements of personal income tax reliefs and tax exemptions in Malaysia highlighted in Budget 2025, visit the Ministry of Finance and LHDN websites.

 

References:

 

 

 

This article is for informational purposes only and CIMB does not make any representation and warranty as to the accuracy, completeness and fairness of any information contained in this article. As this article is general in nature, it is not intended to address the circumstances of any particular individual or entity. You are advised to consult a financial advisor or investment professional before making any decisions based on the information contained in this article. CIMB assumes no liability for any consequences arising from your reliance on the information presented here.