If you have recently started paying attention to the coverage of your medical insurance, or are preparing to handle LHDN tax filing in 2026, understanding the tax relief for medical cards (Tax Relief) can save you a lot of money. The Malaysian government has always encouraged people to secure medical protection for themselves, so a dedicated tax deduction item has been established in personal income tax relief. Exactly how much can be deducted for medical cards (MHIT)? How should you fill it during tax filing? The following answers everything one by one.
MHIT stands for Medical and Health Insurance / Takaful, which is what Malaysians commonly refer to as “medical cards” and “health insurance.” According to the Inland Revenue Board’s classification, it covers personal hospitalisation and surgical insurance as well as critical illness coverage and other protection products. Its main purpose is to reduce the financial burden of medical expenses, while also qualifying for specific personal income tax relief during tax filing.
Whether it is traditional medical insurance or Islamic insurance (Takaful), as long as it meets the conditions of Bank Negara Malaysia and the Inland Revenue Board, you can enjoy tax benefits during the annual tax filing season while obtaining medical protection.
LHDN has different tax relief caps for different types of insurance. Simply put, medical cards and education insurance share a maximum tax relief limit of RM3,000 (increased to RM4,000 from YA 2025), and this is calculated separately from life insurance limits.
Regarding personal income tax relief for medical cards, you need to note the following key details:
Can Takaful Medical Cards Be Deducted for Tax?
Yes, it can. Takaful (Islamic insurance) medical cards enjoy exactly the same tax relief treatment as traditional medical insurance in LHDN tax filing. As long as the premiums you paid are for a Takaful medical card, it is also classified under the “Education and Medical Insurance” tax relief item, sharing the same deduction limit, and will not be treated differently due to the nature of the insurance.
When filing electronically with LHDN, you need to log into the MyTax system and find the dedicated column for medical cards on the “Tax Relief” page. Simply enter the total premiums paid for the year in the corresponding “Education and Medical Insurance” column to complete the deduction successfully.
Many first-time Malaysian taxpayers often don’t know exactly where to fill it. Here are the actual operational steps:
When purchasing an investment-linked policy (ILP) that combines life insurance and medical cards, you cannot treat the total premium as medical card tax relief. During tax filing, you must follow the Annual Premium Statement provided by the insurance company and declare separately according to the proportions of life insurance premiums and medical premiums listed on it.
Many people on the market currently purchase this type of combined policy (Investment-Linked Policy). A common pain point for this type of policy is that many people do not know how to split the premiums when filing taxes. According to Inland Revenue Board regulations, the annual statement issued by the insurance company will clearly list the breakdown details of the premiums: for example, how much belongs to life insurance premiums (deductible under Life Insurance) and how much belongs to medical premiums or supplementary medical coverage (deductible under Medical Insurance). You only need to fill in the corresponding columns in e-Filing based on the data on this official statement. Do not estimate on your own to avoid future tax compliance issues.
Can I buy a medical card for my parents and claim tax relief?
No. Under the “Education and Medical Insurance” column, you can only claim tax relief for medical card premiums paid for yourself, your spouse, and your children. Although LHDN has another relief item called “Medical expenses for parents,” this column is only for actual medical, special needs, or nursing expenses incurred by parents and does not include premiums for medical cards purchased for parents.
Can the medical card provided by my company be used for personal tax deduction?
No. LHDN’s tax relief only applies to premiums paid out of your own pocket. If your medical card is fully provided and paid for by your employer, since you did not actually bear the premium expense, it does not qualify for personal income tax relief.
If my spouse and I jointly pay for our child’s medical card, who can claim the tax relief?
If the premiums for one medical card are paid jointly by both spouses, you can freely decide who will declare this tax relief, or declare separately according to the actual proportion each paid. However, the total amount declared for the same policy cannot exceed the actual premiums paid for that policy, and the amount each declares cannot exceed the individual deduction limit.
Do I need to upload the medical card’s annual statement to LHDN when filing taxes?
No. When submitting e-Filing, you do not need to upload any policy or statement documents. However, according to Inland Revenue Board regulations, you must properly keep all relevant Annual Premium Statements and payment receipts for at least 7 years to provide proof if LHDN requests verification later.
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