Reduce Tax Ringgit-for-Ringgit
Zakat paid can directly reduce your tax, not just a regular tax relief.
Complete Guide to Income Zakat in Malaysia.
Learn how to calculate income zakat, state zakat institutions, and how zakat can significantly reduce your tax.
Calculation Example
How Does Zakat Reduce Tax?
Zakat reduces tax ringgit-for-ringgit (RM1 = RM1)
Tax payable (before zakat)
RM5,000
Zakat paid
- RM1,500
Tax payable (after zakat)
RM3,500
You save RM1,500 in taxes!
Why pay zakat
A religious obligation that also lowers your tax.
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.
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 | ≈RM34,000 (gold nisab, varies by state) | RM37,333+ (after EPF) |
| Tax Deduction | Deducts directly from tax payable | Tax relief only reduces taxable income |
Select Your State
Each state in Malaysia has its own zakat institution with different rates and procedures. Select your state for detailed information.
SelangorLembaga Zakat Selangor (LZS)View state Federal TerritoryPusat Pungutan Zakat - Majlis Agama Islam Wilayah Persekutuan (PPZ-MAIWP)View state JohorMajlis Agama Islam Negeri Johor (MAINJ)View state KedahLembaga Zakat Negeri KedahView state KelantanMajlis Agama Islam dan Adat Istiadat Melayu Kelantan (MAIK)View state MalaccaMajlis Agama Islam Melaka (MAIM)View state Negeri SembilanPusat Zakat Negeri Sembilan (PZNS)View state PahangPusat Kutipan Zakat PahangView state PerakMajlis Agama Islam dan Adat Melayu Perak (MAIPk)View state PerlisMajlis Agama Islam dan Adat Melayu Perlis (MAIPs)View state PenangMajlis Agama Islam Negeri Pulau Pinang (MAINPP)View state SabahPusat Pungutan Zakat SabahView state SarawakTabung Baitulmal SarawakView state TerengganuMajlis Agama Islam dan Adat Melayu Terengganu (MAIDAM)View state
Frequently Asked Questions
About income zakat
Nisab is the minimum threshold value for zakat obligation. For income zakat, nisab is calculated based on current gold prices. For 2026 it is about RM34,000 a year (the value of 85 grams of gold); PPZ-MAIWP, for example, set RM33,996 for the Federal Territories. Each state announces its own figure, so check with your state zakat authority.
Official sources
Calculate your zakat and tax easily
CukaiMax helps you calculate both zakat and tax automatically, and generates reports for zakat payment and e-Filing.
Last updated