Let’s be honest, no one wants to pay more tax than necessary. And with everything getting more expensive, every ringgit you get back during tax season feels like a mini victory.
But many Malaysians still let their hard earned money slip away simply because they are not aware of what they can actually claim.
Now that LHDN has released the full list of tax reliefs for 2025, this is your chance to make sure you are not missing out. Consider this your year end reminder: check your receipts, plan your spending and claim what is yours.
Your automatic relief: RM9,000 without doing anything
Every taxpayer automatically gets RM9,000 in individual relief. Disabled individuals receive RM7,000 extra.
If you are thinking of studying again or upgrading your skills, here is what you can claim under education fees (up to RM7,000):
Eligible education categories include:
- Courses in law, accounting, Islamic finance, technical or vocational fields
- Scientific or technology fields
- Master’s or PhD in any field
- Skills upgrading courses (capped at RM2,000)
Supporting your spouse?
- Spouse or alimony: RM4,000
- Disabled spouse: RM6,000
Your insurance, EPF and retirement savings can reduce your tax too
A lot of Malaysians forget these are claimable. Here is what you get:
You can claim up to RM7,000 for:
- Life insurance premiums
- EPF contributions (mandatory and voluntary)
On top of that:
- PRS or deferred annuity contributions: RM3,000
- Medical and education insurance: RM4,000
- PERKESO contributions: RM350
If you already pay for these every month, congratulations, you are already eligible without doing anything extra.
New for 2025: First homebuyer relief (do not miss this)
If you plan to buy your first home, LHDN is giving you brand new relief options. This applies to sale and purchase agreements from 1 January 2025 to 31 December 2027.
You can now claim interest on your home loan:
Claimable amounts:
- Homes RM500,000 and below: RM7,000
- Homes RM500,001 to RM750,000: RM5,000
If you are a young working adult hoping to own your first home, this is a rare financial bonus you should take advantage of.
Parents, this is where the savings really add up
If you have children, your tax relief expands significantly. Here is your quick list:
For children:
- Child under 18: RM2,000
- Disabled child: RM8,000
For children aged 18+ in full time studies:
- A Level, certificate, matrikulasi or pre university: RM2,000
- Diploma, degree and above: RM8,000
If your child is disabled AND studying:
- Additional RM8,000 relief
Other child related reliefs:
- Childcare or kindergarten (age 6 and below): RM3,000
- SSPN savings: RM8,000
- Breastfeeding equipment (once every 2 years): RM1,000
Parents definitely should not skip this section, it has some of the highest claimable amounts.
Health related reliefs: for yourself, your parents and your kids
Health is expensive, but at least some of it is claimable. Here is what you can deduct:
For yourself, spouse or children:
- Medical expenses for serious diseases
- Fertility treatment
- Vaccinations (capped at RM1,000)
- Dental examinations or treatments (capped at RM1,000)
Extra RM1,000 relief available for:
- Full medical check ups
- Mental health consultations
- COVID 19 tests
- Self monitoring health devices
For parents and grandparents:
- Medical, dental and special needs care
- Full medical check ups (capped at RM1,000)
Total relief available: RM8,000
For children with learning disabilities:
- Assessment and early intervention programmes
Total claimable: RM6,000, with overall medical relief reaching RM10,000
Lifestyle reliefs: things you already buy anyway
This one is always popular because it covers everyday purchases.
You can claim up to RM2,500 for:
- Books, magazines, journals and newspapers (non banned content)
- Laptops, smartphones and tablets
- Monthly internet bills
- Skills upgrading courses
There is also a special sports relief of RM1,000 for:
- Sports equipment
- Gym memberships
- Facility rentals
- Approved competitions
Going green?
- EV chargers and food waste compost machines: RM2,500
Before the year ends… claim. your. money.
Do not wait until tax season panic hits. If there is one thing you should remember, it is this:
If you do not claim it, the money is gone. If you do, it goes right back into your pocket.
So take a bit of time, look through these categories and make sure you claim everything you are eligible for. Your bank account will thank you.
