A tax band table splits income into slices, and each slice has its own rate. Reading the table means finding which slices your income reaches and taxing each slice separately.
This lesson belongs to taxation mathematics in SPM Mathematics. The next lesson, calculating a tax amount from exam-provided data, uses this skill in longer questions.
What does a tax band table look like?
Here is an original table, invented for practice. It is not a current government rate.
| Band | Chargeable income (RM) | Rate | Tax on all income up to start of band (RM) |
|---|---|---|---|
| 1 | First 5 000 | 0% | 0 |
| 2 | Next 15 000 (5 001 to 20 000) | 2% | 0 |
| 3 | Next 15 000 (20 001 to 35 000) | 6% | 300 |
| 4 | Next 15 000 (35 001 to 50 000) | 11% | 1 200 |
Read each row as a slice with its own width and rate. The last column is a running total, so the tax on the first 20 000 is RM300 (15 000 × 2%).
Worked example: chargeable income of RM42 000
Income of RM42 000 reaches band 4, so it passes through every earlier band in full.
- Band 1: the first 5 000 at 0% gives RM0.
- Band 2: a full slice of 15 000 at 2% gives RM300.
- Band 3: a full slice of 15 000 at 6% gives RM900.
- Band 4: the remaining 42 000 − 35 000 = 7 000 at 11% gives RM770.
Total tax = 0 + 300 + 900 + 770 = RM1 970.
The cumulative column gives the same answer faster. Tax up to the start of band 4 is RM1 200, and 1 200 + 770 = RM1 970.
The mistake that loses the marks
The common slip is to find the highest band the income reaches and apply that rate to everything. Here that gives 42 000 × 11% = RM4 620.
| Step | Wrong | Right |
|---|---|---|
| Choose the rate | 11% for all income | Each slice uses its own rate |
| Tax on band 2 | Ignored | 15 000 × 2% = RM300 |
| Last slice | 42 000 | 42 000 − 35 000 = 7 000 |
| Total | RM4 620 | RM1 970 |
A quick sense check catches this. The first two bands are taxed at 0% and 2%, so the tax on RM42 000 must be well below 11% of it. RM4 620 is exactly 11%, which is too high.
Check yourself
Using the same table, find the tax on a chargeable income of RM28 000.
Answer
The income reaches band 3. Band 1 gives RM0 and band 2 is a full slice, 15 000 × 2% = RM300.
The band 3 slice is 28 000 − 20 000 = 8 000, and 8 000 × 6% = RM480.
Total tax = 300 + 480 = RM780. Check with the cumulative column: 300 + 480 = 780.
What to study next
Once bands feel routine, practise the wider set in taxation mathematics practice. Log any slip with the mistake log and paper-error review so you can see whether it is a reading error or an arithmetic error.
For a teacher to go through your table questions step by step, see online one-to-one Mathematics tuition.