2025 personal income tax adjustments:
The maximum RM1,000 tax deduction for health check-ups remains, but the coverage is expanded to include the purchase of health monitoring equipment such as blood pressure monitors, thermometers, and blood glucose meters.
The tax deduction for children with disabilities is increased from RM6,000 to RM8,000.
The tax deduction for spouses with disabilities is increased from RM5,000 to RM6,000.
The tax deduction for individuals with disabilities is increased from RM6,000 to RM7,000.
The RM1,000 tax deduction for purchasing sports equipment and participating in sports activities is extended to include parents.
The RM1,000 tax deduction for parents’ health check-ups is expanded to include vaccinations.
The tax deduction for family medical expenses is extended from parents to grandparents.
The RM3,000 tax deduction for Private Retirement Scheme (PRS) contributions is extended for another 5 years.
The tax deduction for education and medical insurance is increased from RM3,000 to RM4,000.
The RM8,000 tax deduction for SSPN deposits is extended for another 3 years until 2027.
The RM3,000 tax deduction for sending children to daycare is extended for another 3 years.
A RM7,000 tax deduction on mortgage interest is available for houses priced below RM500,000, and a RM5,000 deduction for houses priced between RM500,000 and RM750,000.
The tax deduction for purchasing electric vehicle charging equipment is expanded to include household food waste processors, with a maximum deduction of RM2,500.
Individuals with dividend income exceeding RM100,000 will be subject to a 2% dividend tax.