YA2025 individual tax reliefs: What Malaysians can claim and how you can maximise it

Individuals and dependent relatives will receive up to RM9,000, while those on civil servants’ pension schemes, non-civil servants' pension schemes, and the self-employed will receive up to RM7,000 (restricted) in life insurance and EPF.

As individuals today continue to navigate the rising cost of living, and balance various financial responsibilities, the Malaysia government has introduced a range of individual tax relief measures for Fiscal Year 2025 aimed at easing financial pressures on citizens.

For Year of Assessment (YA) 2025, reliefs have been structured across several key categories, including self and dependent relatives, support for disabled individuals, life insurance contributions, and Employees Provident Fund (EPF) payments. 

The breakdown is as follows: 

Individuals

1. Individual and dependent relatives — RM9,000
2. Expenses for parents and grandparents: — RM8,000 (Restricted)
   1. Medical treatment, dental treatment, special needs and carer expenses (Medical condition certified by medical practitioner)
   2. Complete medical examination (Restricted to RM1,000)
3. Purchase of basic supporting equipment for disabled self, spouse, child or parent — RM6,000 (Restricted)
4. Disabled individual — RM7,000
5. Education fees (Self): — RM7,000 (Restricted)
   1. Other than a degree at master's or doctorate level – Course of study in law, accounting, Islamic financing, technical, vocational, industrial, scientific or technology
   2. Degree at master's or doctorate level – Any course of study
   3. Course of study undertaken for the purpose of upskilling or self-enhancement (Restricted to RM2,000)
6. Payment of housing loan interest for first home ownership (sale and purchase agreement from 1 January 2025 to 31 December 2027)
   1. Relief Limit:
      1. Residential house price up to RM500,000 — RM7,000 OR
      2. Residential house price exceeding RM500,000 up to RM750,000 — RM5,000

The amount of tax reliefs across the following three categories (medical expenses, expenses (restricted to RM1,000) and expenses (restricted to RM6,000)) will add up to RM10,000.

Medical and special needs

1. Medical expenses on: 
   1. Serious diseases for self, spouse or child
   2. Fertility treatment for self or spouse
   3. Vaccination for self, spouse and child (Restricted to RM1,000)
   4. Dental examination and treatment (Restricted RM1,000)
2. Expenses (Restricted to RM1,000) on:
   1. Complete medical examination for self, spouse or child
   2. COVID-19 detection test including purchase of self-detection test kit for self, spouse or child
   3. Mental health examination or consultation for self, spouse or child
   4. Purchase of self-health monitoring equipment
   5. Fees for disease detection tests
3. Expenses (Restricted to RM6,000) for child aged 18 and below:
   1. Assessment of intellectual disability diagnosis
   2. Early intervention programme / intellectual disability rehabilitation treatment

Lifestyle

1. Lifestyle — RM2,500
   • Expenses for the use / benefit of self, spouse or child in respect of:
     • Purchase or subscription of books / journals / magazines / newspapers / other similar publications (Not banned reading materials)
     • Purchase of personal computer, smartphone or tablet (Not for business use)
     • Payment of monthly bill for internet subscription (Under own name)
     • Skill improvement / personal development course fee
2. Lifestyle — RM1,000 (Restricted)
   • Additional relief for the use / benefit of self, spouse, child and parents in respect of:
     • Purchase of sports equipment for any sports activity as defined under the Sports Development Act 199
     • Payment of rental or entrance fee to any sports facility
     • Payment of registration fee for any sports competition where the organizer is approved and licensed by the Commissioner of Sports under the Sports Development Act 1997
     • Gymnasium membership fee / sports training
3. Purchase of breastfeeding equipment for own use for a child aged 2 years and below (Deduction allowed once in every two years of assessment) — RM1,000 (Restricted)
4. Childcare fees to a registered childcare centre / kindergarten for a child aged 6 years and below — RM3,000 (Restricted)
5. Net deposit in Skim Simpanan Pendidikan Nasional (net deposit is the total deposit in 2025 MINUS total withdrawal in 2025) — RM8,000 (Restricted)
6. Husband / wife / payment of alimony to former wife — RM4,000 (Restricted)
7. Disabled husband / wife — RM6,000
8. Each unmarried child of 18 years and above who is receiving full-time education ("A-Level", certificate, matriculation or preparatory courses) — RM2,000
   1. Each unmarried child of 18 years and above — RM8,000
      1. Receiving further education in Malaysia in respect of an award of diploma or higher (excluding matriculation/ preparatory courses).
      2. Receiving further education outside Malaysia in respect of an award of degree or its equivalent (including Master or Doctorate).
      3. The instruction and educational establishment shall be approved by the relevant government authority.
9. Disabled child — RM8,000
   1. Additional exemption of RM8,000 disable child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia @ bachelor's degree or above outside Malaysia in program and in Higher Education Institute that is accredited by related Government authorities — RM8,000
10. Life insurance and EPF
    1. Civil servants’ pension schemes, non-civil servants pension schemes and self-employed category: — RM7,000
       1. Mandatory contributions to approved schemes or voluntary contributions to EPF (excluding private retirement schemes) or contributions under any written law (Restricted to RM4,000)
       2. Life insurance premium payments or family takaful contributions or additional voluntary contributions to EPF (Restricted to RM3,000)
11. Deferred Annuity and Private Retirement Scheme (PRS) — RM3,000 (Restricted)
12. Education and medical insurance — RM4,000 (Restricted)
13. Contribution to the Social Security Organisation (SOCSO) — RM350 (Restricted)
14. Expenses on charging facilities for Electric Vehicle and domestic food waste composting machine (not for business use) — RM2,500 (Restricted)

READ MORE: Special Aidilfitri 2026 financial assistance to be paid to eligible civil servants, retirees on 13 March 

Infographics / Jabatan Penerangan Malaysia Facebook