When Do You Need to Pay Income Tax? Here’s the Full Explanation
by Ani
Feb 11, 2026
at 10:49 AM
When Do You Need to Pay Income Tax? Here’s the Full Explanation
Ever looked at your payslip, saw the PCB deduction, and suddenly thought… “Wait, am I already supposed to be paying income tax?” Or maybe you just started working. Salary RM2,500 a month. Your office friends are already talking about e-Filing, LHDN, tax relief, and you’re just there like… did I miss a life update or what?
Relax. In this article, we’ll break it down properly. When do you actually need to pay income tax? Who is required to file? What’s the minimum salary that gets taxed in Malaysia? Let’s explain it in the clearest, simplest way possible.
When Do You Actually Need to Pay Income Tax in Malaysia?
The time to report and pay income tax depends on the type of income you earned for the Year of Assessment.
Generally, individuals with annual income exceeding RM34,000 (after EPF deductions) are required to register and file income tax.
Here are the important deadlines for submission and tax payment for 2026 (Year of Assessment 2025), according to the Lembaga Hasil Dalam Negeri (LHDN):
In Malaysia, you are required to register for income tax if your annual income reaches a certain threshold.
For Year of Assessment 2025 (to be reported in 2026), the general guideline is:
Annual Income: More than RM37,333 (after mandatory EPF contributions)
Monthly Gross Salary: Around RM3,111 or higher on average
But here’s something important, “Required to file” does not automatically mean “required to pay.” You might not need to pay any tax at all if your chargeable income (after deducting eligible tax reliefs) is low.
Want a Higher Salary So Paying Tax Actually Feels Worth It?
Some people are struggling to find the right job even after sending out dozens of resumes. Salary stagnant. Interview calls slow. It’s frustrating.
But what if there’s a smarter way?
With an AI Job Matcher, the system matches you with jobs based on your skills, experience, and interests — not random applications.
Imagine landing a job with:
Higher salary
Better benefits
Clearer career growth
Sounds better already, right?
Drop your resume now on Maukerja Job Matcherand let the AI system help you find roles that truly match you. The sooner you apply, the higher your chances of getting interview calls. Don’t let someone else grab your opportunity first.
Chargeable income is the total income after deducting all tax reliefs allowed by LHDN. It’s not just your gross monthly salary.
2. What if my salary is below RM3,000 per month?
If your annual income is below the taxable threshold, you generally won’t need to pay tax. However, it’s still good practice to check your eligibility each year.
3. Can I get a tax refund?
Yes. If the Monthly Tax Deduction (PCB) taken from your salary is higher than your actual tax payable after reliefs, LHDN will refund the excess to your bank account.
4. Do freelance earnings need to be declared?
Yes. All income including freelance work, side gigs, small businesses and commissions must be declared in your e-Filing.
5. What happens if I forget to submit e-Filing?
You can still submit it, but you may be subject to a late penalty. It’s better to submit late than to ignore it completely.
 2026.jpeg)
