Zakat Guide Hub

Complete Guide to Income Zakat in Malaysia

Learn how to calculate income zakat, state zakat institutions, and how zakat can significantly reduce your tax.

Reduce Tax Ringgit-for-Ringgit

Zakat paid can directly reduce your tax, not just a regular tax relief.

Fulfill Islamic Pillar

Zakat is one of the Five Pillars of Islam that must be fulfilled by those who are eligible.

Easy Online Payment

Most zakat institutions now provide online platforms for quick and easy payment.

How Does Zakat Reduce Tax?

Calculation Example

Tax payable (before zakat)RM5,000
Zakat paid- RM1,500
Tax payable (after zakat)RM3,500

You save RM1,500 in taxes!

Zakat reduces tax ringgit-for-ringgit (RM1 = RM1)

Zakat vs Tax Differences

Aspect
Zakat
Tax
Nature
Religious obligation (fardhu)
Legal obligation to the state
Rate
2.5% of eligible wealth/income
0-30% based on taxable income brackets
Threshold
≈RM20,000+ (depends on gold nisab)
RM37,333+ (after EPF)
Tax Deduction
Deducts directly from tax payable
Tax relief only reduces taxable income

Frequently Asked Questions

What is nisab for income zakat?
Nisab is the minimum threshold value for zakat obligation. For income zakat, nisab is calculated based on current gold prices. In 2026, nisab is approximately RM20,000 per year (depending on the price of 85 grams of gold).
How does zakat reduce tax?
Zakat paid to LHDN-recognized institutions can be deducted directly from your tax payable. Example: If your tax is RM5,000 and zakat is RM1,000, you only need to pay RM4,000 in tax. This is different from regular tax relief which only reduces taxable income.
Where can I pay zakat?
Each state in Malaysia has its own zakat institution with different rates and procedures. You can pay zakat through your state's zakat institution online portal, or manually at their counters. Select your state below for more information.
Is income zakat obligatory for all Muslims?
Income zakat is obligatory for Muslims whose income reaches or exceeds nisab (threshold), after deducting basic necessities. If your income is below nisab, you are not obligated to pay income zakat.
Can I pay zakat in another state?
Generally, it is recommended to pay zakat in your state of residence. However, some states accept zakat payments from other states. For certainty, contact the relevant state's zakat institution.

Calculate your zakat and tax easily

CukaiMax helps you calculate both zakat and tax automatically, and generates reports for zakat payment and e-Filing.

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