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United States vs Malaysia
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇺🇸 United States
vs
🇲🇾 Malaysia
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
10–37%
TCJA provisions extended; no sunset
No change
0–30%
30% top rate; Pillar Two compliance measures
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
0–11%
No federal sales tax; state avg ~6–9%
No change
10%
Service tax 8% maintained; GST return unlikely
No change

Corporate Tax Rate

Corporate Tax Rate
21%
Federal flat; proposals to raise to 28% stalled
No change
24%
24% stable; potential reduction discussed for competitiveness
No change

Capital Gains Tax

Capital Gains Tax
0–20%
+ 3.8% NIIT; thresholds inflation-adjusted
No change
10–30%
CGT on unlisted shares fully embedded in system
No change

Social Security & Payroll

Social Security / Payroll
~15.3%
SS wage base ~$180,000 est. 2026
No change
~23%
EPF reviewing contribution rates and fund adequacy
No change
State, Regional & Local Taxes

🇺🇸 United StatesState & Local Taxes

The U.S. has 50 states each setting their own income tax (0%–13.3%). California tops at 13.3%, while Texas, Florida, and Nevada levy no state income tax. NYC adds its own income tax (up to 3.876%). Sales taxes vary from 0% (Oregon) to over 11% combined. Property taxes are primarily local. Some states like Washington have introduced capital gains levies.

🇲🇾 MalaysiaState & Local Authority Taxes

Malaysia's 13 states and 3 federal territories have limited independent taxing powers. States levy quit rent (cukai tanah) on land, assessment rates (cukai pintu/taksiran) on property through local councils, and royalties on natural resources. Petroleum royalties are a major state revenue in Sabah, Sarawak, and Terengganu. Local councils (majlis perbandaran) levy property assessment at 6%–12% of estimated annual rental value. No state income taxes exist — this is federal.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

United States vs Malaysia: Key Tax Differences (2026)

💰 Income Tax: 🇺🇸 United States has a higher top income tax rate (10–37% vs 0–30%). 🇲🇾 Malaysia is more favourable for high earners.

🛒 VAT/Sales Tax: United States has a higher consumption tax (0–11% vs 10%).

🏢 Corporate Tax: 🇺🇸 United States offers a lower corporate rate (21% vs 24%), which can influence business location decisions.

📈 Capital Gains: 🇺🇸 United States taxes investment gains at a lower rate (20% vs 30%), benefiting investors.

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