Credit : Erwin Khairul's X
KUALA LUMPUR, November 11, 2026 – The Ketua Pengarah (Director-General) of Jabatan Penerangan Malaysia (JaPen), Erwin Khairul, has highlighted Budget 2027 measures that adjust individual income tax rates for several chargeable income bands and widen the scope of tax relief, including for medical and family costs, education, sports, lifestyle spending such as artificial intelligence (AI) and pets, and contributions to the Social Security Organisation (PERKESO).
In a short video post shared on X on November 11, 2026, Erwin wrote in Malay: “Good news! Budget 2027 introduces adjustments to individual income tax rates for several income bands, as well as an expansion of the scope of tax relief covering medical care, family, education, sports, lifestyle including AI and pets, as well as PERKESO contributions.”
The measures were announced by Prime Minister Datuk Seri Anwar Ibrahim, who is also Finance Minister, when he tabled Budget 2027 in the Dewan Rakyat on October 9, 2026. According to the official list of tax measures published by the Ministry of Finance, the changes take effect from the year of assessment 2027. Bernama also reported the announcements when the Budget was presented.
According to the official tax-measures document, resident individual rates will be restructured. The rate on chargeable income from RM70,001 to RM100,000 will be reduced by one percentage point, from 19 per cent to 18 per cent. A new band of RM100,001 to RM150,000 will be taxed at 24 per cent, one percentage point lower than the previous 25 per cent rate that applied from RM100,001 to RM400,000; income from RM150,001 to RM400,000 will remain at 25 per cent. The band from RM600,001 to RM2 million will be split, so that income from RM600,001 to RM1 million stays at 28 per cent, while chargeable income exceeding RM1 million will be taxed at 30 per cent, instead of that top rate applying only above RM2 million.
The basic individual and dependent-relatives relief, last raised in the year of assessment 2010, will increase from RM9,000 to RM12,000. The same document says medical relief, to be reclassified as Health and Well-being with the limit kept at RM10,000, will also cover postnatal care of up to RM3,000 and breastfeeding equipment of up to RM1,000. Relief of up to RM8,000 for the care of parents and grandparents will cover all types of care expenses, not only medical care. Education and skills-training relief, limited to RM7,000, will be widened to courses in any field and to certain tuition and classes for children. Sports-related lifestyle relief will remain at RM1,000 and will include the purchase of sports shoes of up to RM300.
Lifestyle relief will stay at RM2,500 but will also cover subscriptions to AI software and applications for personal, spousal or a child’s use, the cost of adopting a pet from a registered animal shelter, and registered veterinary vaccination and spaying or neutering. For PERKESO, the existing relief of up to RM350 will be extended to mandatory employee contributions under the Self-Employment Social Security Scheme (LINDUNG Kendiri) for three mandatory sectors: passenger transport, goods or food transport, and hawkers. An additional relief of up to RM150 will be given for voluntary contributions to the Non-Employment Injury Scheme (LINDUNG 24) and for 17 non-mandatory LINDUNG Kendiri sectors.
In the Budget speech, Anwar said the higher reliefs and the reduction in rates would give about five million taxpayers additional disposable income of up to RM1,600. He said the government had heard the concerns of middle-income (M40) households still bearing the cost of living, while remaining committed to progressive taxation for higher earners.
The points Erwin highlighted in his post match the official Budget 2027 tax package for resident individuals. Life News Agency confirmed the details through the Ministry of Finance tax-measures document, the Budget speech and Bernama reports from October.
Sources: Erwin Khairul on X, Ministry of Finance, Tax Measures Budget 2027, Budget 2027 speech, Bernama
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