Understanding your household income category is important for government aid eligibility, subsidy qualification, tax planning, and overall financial management.

In Malaysia, household income is generally divided into three main categories:

B40 (Lower-income group)
M40 (Middle-income group)
T20 (Higher-income group)

Below are several simple ways to help you estimate whether your household falls under the T20 category.

Step 1: Calculate Your Total Household Income

First, combine all sources of income earned by members of the household.
This generally includes:

Salary and bonuses
Business income
Rental income
Dividend and interest income
Freelance or side income
Other recurring income sources

Typically, “household income” refers to the combined income of spouses and family members living together.

Step 2: Compare with the General Income Thresholds

After calculating your total household income, compare it with the estimated ranges below:

B40 Below RM5,000
M40 RM5,000 – RM11,999
T20 RM12,000 and above

The figures above are general references only and may change according to government data and policy updates.

If your monthly household income consistently exceeds RM12,000, your household is likely close to or within the T20 category.

Step 3: Check Your Eligibility for Government Assistance

Another useful indicator is whether your household qualifies for government assistance.
Generally, households in the T20 category receive fewer benefits such as:

STR / BKM cash assistance
Electricity or fuel subsidies
Education assistance
Housing-related aid

If your household rarely qualifies for government aid, it may be due to your income level.

Step 4: Review Your Tax and Income Situation

Your tax profile can also reflect your household income level.
In general, T20 households tend to:

Have higher taxable income
Pay higher personal income tax
Receive fewer targeted subsidies

However, actual tax obligations may vary depending on tax reliefs, financial planning, and income structure.

Step 5: Make an Overall Assessment

Belonging to the T20 category is not determined by a single factor alone. It is usually based on a combination of factors such as:

Total household income
Eligibility for government assistance
Taxable income level
Overall financial profile

If most of the indicators above apply to your household, there is a high possibility that you fall within the T20 income group.

Important Note

The information above is intended for general reference purposes only.
The Malaysian government’s definitions and income thresholds for B40, M40, and T20 may change over time based on economic data and policy updates.

Please refer to official government announcements and relevant authorities for the latest information.

**Data updated on 15.05.2026

Articles