How to Calculate Zakat on Your Salary in Malaysia

In Malaysian practice, zakat on income (zakat pendapatan) is commonly calculated at 2.5% of yearly income once it passes the nisab, subject to the rules of your state zakat authority, which administers zakat in each state. Authorities commonly accept two ways of working it out: 2.5% of your gross income with no deductions, or 2.5% of what is left after deducting basic living needs (had kifayah). PPZ-MAIWP, the Federal Territories zakat centre, lets payers choose either method.

Here's how both work on an example salary, what the nisab is, and how zakat reduces your income tax.

What counts as income

Zakat pendapatan covers income earned from work: salary, allowances, bonuses, commission and freelance or professional fees. Other kinds of wealth, such as savings, gold, shares and EPF withdrawals, have their own zakat categories and calculations. For EPF in particular, see do you pay zakat on EPF savings?

The nisab

Zakat is only obligatory once your wealth reaches the nisab, set at the value of 85 grams of gold. Each state's zakat authority sets its own gold reference price, so the published nisab differs by state and is revised during the year. For 2026, PPZ-MAIWP's published nisab for the Federal Territories is RM33,996. Always use the figure from your own state authority; our Zakat Calculator shows a live gold-based estimate alongside the official figures we have verified.

Which state? Payment arrangements are set by each state authority and can depend on where you live and where you work. If those are different states, ask the zakat authority in each which one you should pay.

Method 1: Without deductions

This is the simplest method. Add up your gross income for the year and multiply by 2.5%.

Example: a monthly salary of RM4,500 plus a RM250 allowance.

• Yearly income: (RM4,500 + RM250) × 12 = RM57,000
• Zakat: RM57,000 × 2.5% = RM1,425 a year, or about RM119 a month

Some people choose this method because it is simpler, or because they prefer to give more.

Method 2: With deductions (had kifayah)

This method first deducts an allowance for basic needs, then applies 2.5% to what remains. The allowed items typically include set amounts for yourself, your spouse and each child, your own EPF contribution, and support for parents. The amounts are fixed by each state authority and differ between states, so use your authority's own calculator rather than a generic list.

Continuing the example, suppose your state's allowed deductions come to RM22,000 for the year:

• Income after deductions: RM57,000 − RM22,000 = RM35,000
• Zakat: RM35,000 × 2.5% = RM875 a year

The difference between the methods here is RM550 a year. Both are accepted in Malaysian practice; the with-deductions method is designed to reflect your household's actual obligations, not simply to reduce what you pay.

How zakat reduces your income tax

Under Section 6A(3) of the Income Tax Act 1967, zakat paid to an official zakat authority gives you a tax rebate. A rebate is taken off your tax bill ringgit for ringgit, which makes it much more valuable than a tax relief, which only reduces taxable income.

LHDN's Public Ruling No. 6/2018 sets out the key conditions:

• It must be paid to an official authority. Zakat given directly to individuals, however worthy, does not qualify for the rebate.
• It counts in the year you pay it. Zakat paid by 31 December counts for that year of assessment.
• It is capped at your tax charged. If your zakat is more than your tax, the excess is neither refunded nor carried forward.
• Keep your receipts. Receipts must be in your name.

Example: if your income tax for the year is RM1,000 and you paid RM1,425 in zakat, your tax falls to zero. The remaining RM425 is not refunded, but it has still been paid as zakat.

Paying monthly through your employer

Many employers offer zakat by salary deduction (potongan gaji), arranged through your state's zakat authority. It spreads the payment evenly across the year, and because the zakat is paid as you go, the rebate can be taken into account in your monthly tax deduction (PCB) rather than waiting for your tax return. Ask your HR department whether your employer participates.

If you pay yourself instead, most state authorities accept online banking, FPX and their own apps. Set a reminder well before 31 December so the payment counts for the right tax year. The Budget Analyzer can help you fit a monthly zakat amount into your spending plan.

Missed years

If you've missed zakat in past years when your income was above the nisab, most authorities offer a way to make it up (qada' zakat). Estimate the income for each year, compare it with that year's nisab and pay 2.5%. Your authority can help you work it out.

For the wider picture of zakat, including its conditions and who receives it, see Zakat: The Pillar of Purifying Wealth. Zakat, Sadaqah and Waqf explains how zakat relates to other forms of giving.

This guide explains common Malaysian practice. Zakat is a religious obligation, and your state zakat authority's rulings and figures govern.

References

• PPZ-MAIWP, Arkib Nisab Tahunan (annual nisab archive)
• PPZ-MAIWP, official account confirming both calculation methods (May 2026)
• Pusat Kutipan Zakat Pahang, as described in Had Kifayah Zakat: Apa Maksud dan Bila Digunakan?
• Inland Revenue Board of Malaysia, Public Ruling No. 6/2018, Taxation of a Resident Individual Part III (summary via CTIM)
• Income Tax Act 1967, Section 6A(3), lom.agc.gov.my