Budget 2027 raises individual tax relief, extends Sara aid to M40
13 million adult Malaysians who do not receive STR will get RM100 twice in 2027, before Aidilfitri and for the 70th National Day.
Budget 2027 increases the ceiling for individual tax relief from RM9,000 to RM12,000, with middle-income earners (M40) among the beneficiaries, Treasury secretary general Tan Sri Johan Mahmood Merican said. Eligible adults will also receive two RM100 payments through Sumbangan Asas Rahmah (Sara) Madani in 2027.
Speaking at an online Budget 2027 briefing organised by the Department of Information, Johan said the higher relief ceiling was the first adjustment in over a decade. He said it would lower eligible taxpayers’ taxable income and leave them with more disposable income.
The Sara payments will reach 13 million Malaysians aged 18 and above who are not Sumbangan Tunai Rahmah (STR) recipients, including those in the M40 group. Disbursements are scheduled before Aidilfitri and to mark the 70th National Day. Monthly Sara support for STR recipients will continue based on eligibility categories, Johan said.
The expanded tax relief provisions include postnatal care and children’s tuition or classes in STEM, arts, languages and religion, with limits and conditions applying. Sports shoes qualify for sports-related relief up to RM300.
Lifestyle relief also includes subscriptions to artificial intelligence (AI) software, adoption expenses for pets from registered centres, and vaccination and neutering services provided by registered veterinary services.
For first-time homebuyers, Johan said properties costing up to RM500,000 qualify for a 100% stamp duty exemption. For homes above RM500,000 and up to RM750,000, a 50% exemption applies to the value exceeding RM500,000, subject to conditions.
