PennyCompass

Malaysia Child Tax Relief Calculator

Totals child relief across under-18, tertiary-education, and disabled children.

Published

Child relief across under-18, tertiary, and disabled children.

Tax saved

Total relief

Children counted

Your breakdown

Updates live as you type
CategoryCountRelief

Three relief amounts that stack

Child relief in Malaysia is not one flat figure. It splits by the child's situation, and this calculator adds up three separate buckets. A child under 18 brings a relief the tool sets at RM2,000. An unmarried child aged 18 or over in full-time tertiary education brings a larger relief, modelled here at RM8,000, because the cost of supporting a university student is higher. A disabled child carries a relief of RM8,000 as applied by this tool. You enter how many children fall in each bucket, the tool sums the relief, and then multiplies by your marginal rate to show the tax you actually save. Those amounts are the figures this calculator uses for Year of Assessment 2025; treat them as a starting point and confirm the current relief with LHDN (the Inland Revenue Board of Malaysia) before you file.

The split matters because a single household often spans more than one bucket. Two primary-school children plus one in their first year of degree study is a common shape, and each bucket is counted at its own rate rather than averaged.

Picking the marginal rate that matters

The slowest part of using this tool well is choosing the right marginal rate, and it is where people get the saving wrong. A relief does not refund itself at a flat percentage. It reduces your chargeable income, so its value depends on the top tax band your income reaches. Malaysia taxes resident individuals on a progressive scale that runs from 0 percent on the first slice of chargeable income up to 30 percent at the very top. The default in this tool is 19 percent, which corresponds to the band the calculator applies to chargeable income between roughly RM70,000 and RM100,000. If your chargeable income peaks in a lower band, set a lower rate; if it reaches into the 24 or 25 percent territory, set that. Use your highest band, not your average rate, because reliefs peel off the top of your income first. Confirm the exact band edges with LHDN, since the bracket thresholds this tool models can change between budgets.

A two-and-one family at the 19 percent band

Picture a parent with two children under 18 and one child in their first degree year, with a top marginal band of 19 percent. The relief stacks to RM12,000, and at a 19 percent marginal rate that trims RM2,280 off the tax bill. The bar chart compares the three buckets so you can see where the value concentrates: the single tertiary child is worth as much relief as four under-18 children.

Where families lose relief

A few traps quietly cost parents money. First, only one parent can claim the full relief for a given child; if both parents file separately and both claim the full amount, it is wrong, and the rule generally allows the relief to be split 50/50 or claimed in full by one parent, not doubled. Second, the tertiary band requires the child to be unmarried and the course to be a recognised full-time programme; a part-time diploma may not qualify at the higher amount. Third, age is tested in the year, so a child who turns 18 partway through, or finishes a degree mid-year, may shift buckets. When in doubt about which category a child falls into, check the conditions on the LHDN reliefs page rather than guessing, because the categories carry very different amounts.

Can both parents claim child relief for the same child?

Not the full amount each. For a given child the relief is generally either claimed in full by one parent or shared equally between two parents who assess separately. Claiming the full RM2,000 or RM8,000 twice for one child will not survive an LHDN check. Decide between you which parent claims, ideally the one in the higher tax band so the relief saves more tax.

Does a child studying abroad still count?

Generally yes for the tertiary relief, provided the institution and course meet LHDN's recognition conditions and the child is unmarried and in full-time study. The location matters less than the recognised, full-time nature of the programme. Keep the enrolment and fee documents, because this is exactly the kind of claim that gets queried.

Frequently asked questions

How much child relief can I claim in Malaysia?
You can claim RM2,000 for each unmarried child under 18. For an unmarried child aged 18 or over in full-time tertiary education, the relief rises to RM8,000. A disabled child attracts a base relief of RM8,000, with a further amount if that child is also in tertiary education. Your tax saving is the total relief multiplied by your marginal rate.
Can both parents claim the full child relief for the same child?
No. For a given child, the relief is either claimed in full by one parent or split equally between two parents who file separately. Claiming the full amount twice for the same child will not pass an LHDN audit. It is worth assigning the full claim to whichever parent sits in the higher marginal band, because the tax saving is larger there.
Does the tertiary education relief apply if my child studies abroad?
Generally yes, provided the institution and course meet LHDN recognition conditions and the child is unmarried and enrolled full-time. The physical location of the university matters less than whether the programme qualifies under Malaysian rules. Keep enrolment letters and fee receipts, as overseas study claims are commonly queried during audits.
What counts as a disabled child for the RM8,000 relief?
A disabled child for LHDN purposes is one officially recognised as having a physical or mental disability. The recognition is based on registration with the relevant authority rather than a personal assessment. If the disabled child is also in full-time tertiary education, an additional amount may stack on top of the base RM8,000. Confirm the current stacking rules and registration requirements with LHDN or a licensed tax agent before filing.

Related calculators

Sources

  1. LHDN — Individual Income Tax Rates, Inland Revenue Board of Malaysia (LHDN)
  2. KWSP — EPF Contribution Rates, Employees Provident Fund (KWSP), Malaysia
Embed this calculator on your site (free)

Paste this code into your page. The calculator stays up to date automatically and links back to PennyCompass.

Calculator by PennyCompass