Tax season doesn’t have to be painful—especially if you’re aware of the available deductions. One of the most flexible categories available to Malaysian taxpayers is the Malaysia lifestyle tax relief, designed to support healthy living, education, and digital access.
Here’s what qualifies for relief in 2026 and how to claim it correctly.
What Is Lifestyle Tax Relief?
Lifestyle tax relief is part of the Malaysian government’s efforts to reduce your personal tax burden while encouraging beneficial spending. Under this category, individual taxpayers can claim up to RM2,500 per year on specific lifestyle-related expenses.
This limit is part of the “Individual Relief for Lifestyle” category under the LHDN (Inland Revenue Board of Malaysia) tax structure.
Note: This relief is separate from other categories such as medical insurance, education fees, and PRS contributions.
What Expenses Qualify for Lifestyle Tax Relief?
Here’s what you can include under the RM2,500 cap:
1. Books, Journals, Publications
- Both physical and digital formats
- Must be for self, spouse, or child (not gifts)
2. Personal Electronic Devices
- Smartphones, tablets, computers, printers, etc.
- Limited to one unit per item type per year
3. Internet Subscriptions
- Monthly broadband, fibre, or mobile internet bills
- Must be under your name
4. Sports Equipment and Activities
- Equipment for fitness or sports (e.g. yoga mats, bicycles)
- Gym membership fees
- Entry fees for sporting events
Expenses must be for personal use, not business or resale purposes.
Additional RM500 for Lifestyle (Mental Health & Education)
Since 2021, taxpayers can also claim an additional RM500 for:
- Mental health support services (e.g. psychiatrist or counsellor sessions)
- Personal development courses (excluding degree-level education)
- Courses must be recognised by relevant authorities such as HRDCorp or professional bodies
How to Claim Lifestyle Tax Relief in 2026
- Collect receipts or statements from your purchases and services
- Keep proof of payment (official receipts, bank transfer records)
- During e-Filing, input total eligible expenses in the Lifestyle Tax Relief section
- Ensure claims are within the combined RM2,500 + RM500 caps
- Retain documents for up to 7 years, in case of audit
For more detailed breakdowns on combining lifestyle relief with retirement strategies and PRS contributions, explore Versa’s full guide on Malaysia lifestyle tax relief and tax optimisation tips.
Conclusion: Save More by Spending Smart
Understanding Malaysia lifestyle tax relief not only helps reduce your income tax—it also promotes healthier, more connected, and well-rounded living. Make full use of the eligible claims to maximise your savings in 2026.
