Zakat Pendapatan in Malaysia: Who Must Pay, How to Calculate, and How to Claim 100% Tax Rebate

For working Muslims in Malaysia, zakat pendapatan is not only for religious matters, but also a structured way to purify income, support the ummah, and at the same time, reduce income tax payable through a 100% LHDN tax rebate. Understanding how it works helps ensure both religious compliance and financial accuracy.

This guide explains what zakat pendapatan is, who needs to pay it, how it is calculated, how to pay it by state, and how it interacts with Malaysia’s income tax system.

What Is Zakat Pendapatan

Zakat pendapatan refers to zakat imposed on halal income earned through work or services. In Islamic jurisprudence, it is categorised under zakat al-mal al-mustafad, which refers to zakat on wealth acquired through effort, skill, or service rather than trade.

In Malaysia, zakat pendapatan generally applies to income such as:

Monthly salary
Fixed and variable allowances
Bonuses and incentives
Commissions
Professional and consultancy fees
Other lawful income derived from personal effort

Once the income meets the required conditions, zakat is imposed at a standard rate of 2.5%, subject to state fatwa rulings.

Dalil Kewajipan Zakat Pendapatan

The obligation to pay zakat on income is supported by Islamic sources and recognised by Malaysian religious authorities.

From the Quran, Allah SWT states in Surah Al-Baqarah (2:267):

O you who believe, spend from the good things which you have earned…

This verse establishes that wealth obtained through lawful effort is subject to purification.

The obligation is further supported by hadiths that emphasise giving from one’s earnings. In Malaysia, state Islamic religious councils and the National Fatwa Committee have formally ruled that zakat pendapatan is wajib for Muslims who meet the conditions.

Types of Income Subject to Zakat

Zakat pendapatan applies to income that is:

Halal
Fully owned
Earned through lawful effort

Income that is zakatable includes:

Employment income (salary, overtime, allowances, bonus)
Freelance and professional income (consulting, commissions, royalties)
Rental income from assets such as houses or vehicles
Business-related income
Gifts or allowances received regularly as part of income

Income that is not zakatable includes:

Income from non-halal sources
Syubhah (doubtful) income until clarified

Who Must Pay Zakat Pendapatan

A Muslim is obligated to pay zakat pendapatan if all the following conditions are met:

Muslim
Merdeka (free)
Income is fully owned and usable
Income reaches the nisab
Meets the haul requirement (subject to state fatwa)

Important note: In Malaysia, zakat rulings are governed by state fatwa, so calculation methods may vary slightly by negeri.

Kadar & Nisab Zakat Pendapatan

In Malaysia, the zakat pendapatan rate is fixed at 2.5% across states. The key question is usually not the rate, but whether your income has reached the nisab, and how your state applies the calculation (gross vs after basic expenses).

Nisab is the minimum threshold that triggers zakat obligation. For zakat pendapatan, nisab is calculated based on the current value of 85 grams of gold. Because gold prices fluctuate, nisab changes by year and can differ between states.

Many state zakat institutions update nisab twice a year (January and July), so it’s normal for nisab to shift mid-year.

Estimated Nisab by State

Below is an estimated overview of nisab values commonly used by major states. These figures are indicative only and should always be verified with the official zakat authority of your state.

State	Estimated Annual Nisab
Selangor	~RM35,449
Wilayah Persekutuan	~RM35,000 – RM45,000
Johor	~RM46,362
Kedah	~RM38,618
Negeri Sembilan	~RM33,880
Perak	~RM32,134
Melaka	~RM29,741
Kelantan	~RM29,376
Sabah	~RM29,000

Because nisab is gold-based, figures may vary slightly between states and across different periods in the year.

Check Nisab and Haul by State in Malaysia

In Malaysia, nisab and haul rules are set by each state zakat authority. Because nisab is based on the price of gold, the amount can change during the year.

Below are the official zakat portals for each state. Through these portals, you can:

Check the latest nisab amount
Use the official zakat calculator
Refer to state-specific guidance on haul

State	Zakat Authority	Official Portal
Federal Territory	PPZ-MAIWP	zakat.com.my
Selangor	Lembaga Zakat Selangor	www.zakatselangor.com
Johor	MAI Johor (Zakat)	maij.gov.my
Kedah	Lembaga Zakat Kedah	zakatkedah.com.my
Penang	Zakat Pulau Pinang	zakatpenang.com
Perak	MAI Perak (Zakat)	maiamp.gov.my
Negeri Sembilan	Zakat Negeri Sembilan	mains.gov.my
Melaka	Zakat Melaka	izakatmelaka.com.my
Pahang	Zakat Pahang	zakatpahang.my
Terengganu	MAIDAM	maidam.gov.my
Kelantan	MAIK	e-maik.my
Perlis	MAIPs	maips.gov.my
Sabah	MUIS Zakat	appszakat.muis.gov.my
Sarawak	Tabung Baitulmal Sarawak	www.tbs.org.my

Haul means one full Hijrah year (354 days).

For zakat pendapatan:

Some states calculate haul from the first income that exceeds nisab
For continuous monthly income, many states allow monthly zakat payment without waiting for a full year

Because rules may differ slightly by state, it is best to refer to your state zakat portal for the most accurate guidance.

How to Calculate Zakat Pendapatan

In practice, zakat pendapatan is commonly calculated using one of two accepted methods. The choice depends on personal circumstances and state guidance.

Method 1: Gross Income Method (Without Deduction)

This method is straightforward and commonly used when income clearly exceeds nisab.

Formula:

Total annual income × 2.5%

Example:

Monthly salary: RM4,500
Annual salary: RM4,500 × 12 = RM54,000
Fixed allowance: RM250 × 12 = RM3,000
Total annual income: RM57,000

Zakat payable: RM57,000 × 2.5% = RM1,425 per year, or approximately RM118.75 per month.

This method is suitable for individuals who prefer simplicity and do not claim expense deductions.

Method 2: Net Income Method (With Had Kifayah Deduction)

This method considers basic living expenses first. Zakat is only charged on surplus income after essential needs are deducted.

Common deductible items may include:

Personal living expenses
Spouse and children
EPF contributions

Not sure how much EPF you need to contribute? Calculate it easily now.

Tabung Haji savings
Support for parents or dependants

General steps:

Calculate total annual income
Deduct approved basic expenses
If the remaining amount exceeds nisab, apply zakat at 2.5%

This approach is often preferred by individuals with higher family responsibilities, as it reflects actual financial capacity more accurately.

How to Pay Zakat Pendapatan

Zakat pendapatan can be paid through several convenient channels, depending on the state.

Common payment methods include:

Official state zakat portals
Internet banking and FPX
Salary deduction schemes
Selected e-wallet platforms
Physical counters at zakat offices or appointed agents

Each payment must be made to a recognised state zakat authority to qualify for tax rebate purposes.

Potongan Gaji Berjadual (PGB)

Potongan Gaji Berjadual (PGB) is a popular option among salaried employees. Under this arrangement:

Zakat is deducted automatically from the monthly salary
Payments are coordinated through employer's payroll
Contributions are made consistently throughout the year

Key advantages of PGB:

No need to remember payment dates
Smooth cash-flow management
Easier income tax reconciliation
Seamless integration with tax rebate claims

When Should Zakat Pendapatan Be Paid

Zakat pendapatan does not have a fixed deadline like zakat fitrah. Payment can be made:

Monthly, once income is confirmed to exceed nisab
Annually, as a lump sum

However, for tax purposes, zakat should be paid before 31 December to qualify for a rebate in that assessment year. Many Muslims also choose to pay before Ramadan as part of spiritual preparation.

Zakat Pendapatan & LHDN Tax Rebate

One of the most distinctive features of zakat pendapatan in Malaysia is its 100% income tax rebate. It is important to understand the difference:

Tax relief reduces taxable income
Zakat rebate reduces the tax payable directly

This means zakat paid can offset income tax ringgit-for-ringgit, provided it is paid to an authorised zakat institution and supported by an official receipt.

How to Claim Rebate

There are 2 options to claim the rebate:

Option 1: Automatic via PGB

When zakat is deducted monthly through payroll:

Zakat payments are aligned with monthly tax deductions
In some cases, income tax payable may be fully offset
Employees may see little or no PCB deduction

Option 2: Manual via e-Filing

For direct payments:

Pay zakat before 31 December
Keep the official zakat receipt
During e-Filing, declare the amount under “Zakat & Fitrah”

The declared amount will be deducted directly from the tax payable.

FAQs

Is zakat pendapatan wajib?

Yes. Zakat pendapatan is wajib for Muslims who meet the conditions set by state fatwa authorities.

What income is included in zakat pendapatan?

Salary, allowances, bonuses, commissions, professional fees, rental income, and other lawful earnings.

Do I still need to pay zakat if I pay income tax?

Yes. Zakat and tax are separate obligations. In Malaysia, zakat qualifies as a full tax rebate.

Which state should zakat be paid to?

Generally, zakat is paid to the state where income is earned.

What if zakat was missed in previous years?

Outstanding zakat remains a debt and should be settled as zakat qada.

Is EPF zakatable every year?

No. EPF becomes zakatable only when it is withdrawn and fully owned.

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