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Rental income tax calculator Malaysia.

Work out the extra income tax your rent adds, using LHDN's progressive rates and the expenses Public Ruling 12/2018 allows. For landlords and property investors.

Start calculating Allowable deductions
  • Allowable expense types
    8
  • Tax rates
    0%–30%
  • Rebate (chargeable ≤ RM35,000)
    RM400

Calculate your rental tax

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Property type
You can also deduct the cost of replacing furnishings
Months rented
Months the property was let this year
12mo
Optional, per year

Salary and other income for the year after reliefs. Leave 0 if the rent is your only income; your reliefs then aren't applied, so the estimate runs high.

Allowable deductions
Actual amounts paid this year
Annual assessment paid to the local council
Annual quit rent paid to the land office
Interest on the loan used to buy the property (not principal)
Fire insurance premium on the rented property
Ordinary repairs that keep the property in its existing state, not renovation
Rent collection fees and legal costs to enforce collection
Agent fees, legal and stamp costs to renew or change tenant. Costs for the first tenant are not deductible
Cost of replacing furniture or air-conditioners, not the first purchase
  • Net rental income
  • Allowable expenses
  • Progressive rates
  • Extra tax from rent

Allowable deductions

Direct expenses you actually paid to earn the rent (LHDN Public Ruling 12/2018). There is no flat expense rate.

Allowable deductions
DeductionWhat it covers
Assessment and quit rentPaid to the local council and the land office
Loan interestInterest on the loan used to buy the property (not principal)
Fire insurancePremium on the rented property
RepairsOrdinary repairs to keep the property as it was, not renovation or upgrades
Rent collectionCollection fees and legal costs to recover rent
Renewal or new tenantCosts to renew a tenancy or replace a tenant
Replacing furnishingsFurnished lets only: replacing furniture or air-conditioners
Not deductibleCosts to find the first tenant (advertising, agent commission, tenancy agreement, stamp duty), loan principal, and the first purchase of furniture

Questions

About rental income tax

Rent is not taxed on its own. Your net rent (gross rent less allowable expenses) is added to your other income, reliefs come off, and the total is taxed at the progressive resident rates of 0% to 30%. The tax your rent causes is the tax on everything minus the tax you would pay without it. The RM400 rebate only applies while chargeable income stays at or below RM35,000.

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Extra tax from rentRM 2,074.00
Rent, 12 months
RM 24,000.00
Assessment tax
− RM 600.00
Net rental income
RM 23,400.00
Other chargeable income
RM 40,000.00

Official sources

LHDN
Tax rates
Individual income tax rates
LHDN
Public Ruling 12/2018
Income from letting of real property
CTIM
P.U.(A) 55/2019
The expired 50% residential rent exemption
MOF
Budget 2026 tax measures
No renewal of the rent exemption

Information on this page is based on official LHDN guidelines and Malaysian government sources.