Cover image via Mahzir Mat Isa/New Straits Times
Follow us on Instagram, TikTok, and WhatsApp for the latest stories and breaking news.
Take note, because none of us wants to pay more income tax than we have to
For the 2025 Assessment Year, the Inland Revenue Board (LHDN) has introduced several new reliefs, including higher relief for persons with disabilities, expanded green technology incentives, and a new relief for first-time homeowners' housing loan interest.
To help make your e-filing process easier, LHDN recently released the full list of income tax reliefs applicable for 2025.
Here's a breakdown of the income tax reliefs you can claim:
1. Individual and dependent relatives relief – RM9,000
This relief is granted automatically if you are unmarried.
If you are an individual with disabilities who is registered with the Social Welfare Department (JKM), you are entitled to an additional RM7,000 relief — an increase of RM1,000 from last year.
2. Spouse relief – up to RM4,000
This relief is only applicable if your spouse has no source of income and if they opt for a joint assessment under your name.
If your spouse is disabled, you are granted an additional relief of RM6,000.
The relief is also granted to divorced individuals who are paying alimony to their former spouse.
3. Self education fees – up to RM7,000
If you're paying for your own higher education, you may claim this relief.
The eligible courses of study include:
– Postgraduate (masters or doctorate) – any course of study
– Undergraduate – if your course is in law, accounting, Islamic financing, technical, vocational, industrial, scientific, or technology
You are entitled to a maximum RM2,000 relief if you are undertaking an upskilling course recognised by the Department of Skills Development.
4. Lifestyle purchases for self, spouse, or child – up to RM2,500
You can claim this tax relief for the following expenses:
– Purchase or subscription of books, journals, magazines, newspapers, or other similar publications
– 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 fees
5. Sports-related lifestyle relief – RM1,000
In addition to the general lifestyle tax relief, you can claim for these sports-related expenses:
– Purchase of sports equipment for any sports activity as defined under the Sport Development Act 1997
– Payment of rental or entrance fees to sports facilities
– Payment of registration fees for sports competitions where the organiser is approved and licensed by the Commissioner of Sports under the Sport Development Act 1997
– Gymnasium membership fee / sports training
6. Electric vehicle (EV) charging equipment – up to RM2,500
This 'green tech' relief covers expenses related to purchasing, installing, or renting EV charging equipment, including subscriptions for charging facilities.
It has also been expanded to include the purchase of a food waste composting machine for household use.
7. Child relief – RM2,000 per child
If you are married with children, you can claim a relief of RM2,000 for each unmarried child under the age of 18.
If you have a disabled child registered with JKM, you can claim a relief of RM8,000.
8. Additional relief for children (18+) in full-time education – up to RM8,000 per child
You can claim tax relief of RM2,000 for each unmarried child aged 18 and above who is enrolled in full-time education, such as A-Levels, certificate, matriculation, or preparatory courses.
Meanwhile, a higher deduction of RM8,000 can be claimed if the unmarried child aged 18 and above is:
– pursuing further education in Malaysia (diploma level or higher)
– pursuing further education outside Malaysia (degree level or higher)
If your disabled child is pursuing higher education (diploma level or higher), whether in Malaysia or abroad, you are entitled to an additional RM8,000 tax relief.
9. Breastfeeding equipment – up to RM1,000
This relief is available to mothers with children aged 2 years and below, and can only be claimed once every two assessment years.
10. Childcare fees – up to RM3,000
You can claim this relief if you have paid fees to a registered childcare centre or kindergarten for a child aged 6 years and below.
11. Medical expenses for self, spouse, or child – up to RM10,000
This relief is claimable for medical expenses related to:
– Serious diseases for self, spouse, or child
– Fertility treatment for self or spouse
– Vaccination for self, spouse, and child (capped at RM1,000)
– Dental examination and treatment (capped at RM1,000)
Other medical expenses that you can claim relief for up to RM1,000 are:
– Complete medical examination for self, spouse, or child
– COVID-19 detection test, including the purchase of self-detection test kits purchased for self, spouse, or child
– Mental health examination or consultation for self, spouse, or child
– Purchase of self-health monitoring equipment
– Fees for disease detection tests
You can also claim up to RM6,000 relief for these medical expenses for your child under 18 years old:
– Assessment of intellectual disability diagnosis
– Early intervention programme or intellectual disability rehabilitation treatment
12. Medical expenses for parents and grandparents – up to RM8,000
A taxpayer can claim relief for medical treatment, dental treatment, special needs, and carer expenses for their parents (and grandparents this year!) if they have a medical condition certified by a medical practitioner.
Complete medical examinations are capped at RM1,000 within this claim.
13. Purchase of supporting equipment for self (if a disabled person) or for disabled spouse, child, or parent – up to RM6,000
14. Contribution to financial schemes
– Education and medical insurance – up to RM4,000
– Private retirement schemes or deferred annuity schemes – up to RM3,000
– Social Security Organisation (SOCSO) – up to RM350
– Skim Simpanan Pendidikan Nasional (SSPN) – up to RM8,000
– Employees Provident Fund (EPF) contributions and life insurance – up to RM7,000 (RM4,000 for EPF contributions, RM3,000 for personal life insurance premium payments)
15. Payment of housing loan interest for first home ownership
This new relief applies if your sale and purchase agreement is signed between 1 January 2025 and 31 December 2027.
The relief is capped at:
– RM7,000 for homes priced up to RM500,000
– RM2,500 for homes priced between RM500,000 and RM750,000
To sum it all up, check out this infographic by LHDN:
