For YA 2026, eligible taxpayers can generally claim up to RM 4,000 for education and medical insurance. Life insurance relief goes up to RM 3,000 within the RM 7,000 combined EPF and life insurance limit. Keep your insurer’s premium statement, then enter the eligible amounts when filing through MyTax.
- Tax relief lowers your taxable income, not your tax bill ringgit for ringgit.
- Medical and life insurance fall under different categories.
- Your EPF contributions may use up the combined limit first.
- Your insurer can tell you how premiums are split for tax.
What Is Tax Relief?
Tax relief reduces the income on which your tax is calculated. If your top tax rate is 3%, RM 1,000 of relief saves about RM 30 in tax.
If you do not owe any tax, your claim may not save you money. You should still keep your records and file if you are required to do so.
How Much Can You Claim for YA 2026?
| Relief category | Limit | What it can include |
|---|---|---|
| Education and medical insurance | Up to RM 4,000 | Eligible medical and education premiums for you, your spouse or children |
| Life insurance and EPF combined | Up to RM 7,000 | EPF up to RM 4,000, life insurance up to RM 3,000 |
| SOCSO and EIS | Up to RM 350 | Eligible employee contributions |
| Medical expenses | Up to RM 10,000 | Eligible expenses for serious disease and related claims |
These limits should be checked against LHDN’s latest list before filing. The medical expense category also has its own rules and sub-limits.
Why Can Your EPF Affect Life Insurance Relief?
EPF and life insurance share a combined limit, but life insurance has its own RM 3,000 part. For someone earning RM 3,500, employee EPF is about RM 4,620 a year. That usually uses up the EPF portion, but you can still check how your life insurance claim fits within the separate RM 3,000 part.
How Do You Claim Insurance Tax Relief?
- Download your yearly premium statement from your insurer.
- Check how the insurer splits your premium, such as life, medical or critical illness.
- Enter the eligible amounts in the correct relief categories.
- Keep your statement and receipts for at least seven years.
- File through LHDN’s MyTax portal before the deadline for your income type.
Do not guess the split, especially for plans with riders or investment-linked features. Only eligible portions can be claimed.
What Changed with Budget 2027?
Budget 2027 announced a higher individual relief of RM 12,000, up from RM 9,000, along with lower tax rates for selected income bands. Medical treatment relief was also expanded to include postnatal care.
At the time of writing, we did not find an announced change to the RM 4,000 education and medical insurance limit. Check LHDN’s final relief list for your tax year.
Frequently Asked Questions
Can fresh graduates claim insurance tax relief?
Yes, if you pay eligible premiums and meet the rules for that year. The relief only reduces your tax if you have taxable income.
Can I claim medical insurance paid through my employer?
You generally claim premiums you paid yourself. Check how your employer’s benefit is treated before you claim.
Can I claim my investment-linked plan?
Only eligible portions may qualify. Ask your insurer for a tax statement that shows the split for your policy.
What Should You Do Next?
Ask your insurer for your statement before tax season. If you are not sure what your policy includes, ask FINNO. to help you find the document. Please consult LHDN or a tax adviser for tax advice.
Related reading: How Much of an RM 3,500 Salary Should Go to Insurance? and Insurance Terms in Malaysia: A Simple Glossary.
This article is general information, not tax or personal financial advice. Tax rules can change.
Sources
- RinggitPlus: insurance premium tax relief
- Prudential: insurance tax relief
- RinggitPlus: medical expense relief YA 2026
- Bernama: Budget 2027 tax relief
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