The Budget 2026 has been announced, with new benefits and tax reliefs for all Malaysians.
Just like last year, we have several financial perks that parents, families and children can cash in on.
Whether you’re paying for childcare, buying your first home, or planning a local holiday, here’s a breakdown of what parents should know and how you can make the most of it.
Childcare
If you’re a working parent who sends your child to daycare or a transit centre, you can now claim up to RM3,000 in tax relief for fees paid to registered centres. However, this benefit only applies to children up to 12 years old.
This is a big help for families juggling after-school care or holiday programmes. For instance, if your seven-year-old goes to a transit centre after school, you can now claim those fees too, not just kindergarten tuition.
For parents of children who need therapy or early intervention, the government is offering up to RM10,000 in tax relief. These include speech, occupational, or behavioural therapy
When it comes to family health, all KKM-approved vaccines now qualify for medical tax relief. So, if you’ve been paying out of pocket for certain vaccines for your kids or even for yourself (like HPV or flu shots), you can claim them.
Lastly, parents can also include children’s life or takaful policies under the existing RM3,000 insurance relief.
If you’ve set up a plan for your child’s future education or protection, that premium now helps lower your taxes too.
House Ownership
Buying your first family home is no small feat. Budget 2026 extends the zero stamp duty on homes priced up to RM500,000 until 2027.
That means if you’re buying your first house or apartment within that range, you could save thousands in upfront legal and stamp duty costs.
There’s also some good news for those hiring domestic helpers or home staff.
Starting in 2026, employment contracts for workers earning under RM3,000 per month won’t be charged stamp duty.
So if you hire a live-in helper or part-time nanny, you can formalise the contract legally without extra fees, a win for both families and workers.
And if you’re thinking about greener living, you can claim your food waste shredder or composting machine under your RM2,500 lifestyle relief. It’s a small but meaningful way to save money while keeping your home eco-friendly.
A carbon tax is also set to kick in from 2026.
This might raise costs for some industries, but it’s designed to help Malaysia move towards cleaner energy and a healthier environment. That’s good news in the long run for our children’s future.
Travelling
If you’re planning a local family holiday, there’s an added reason to pack your bags.
Families can now claim up to RM1,000 in tax relief when visiting local attractions or cultural programmes. This is part of the Visit Malaysia Year 2026 campaign.
Whether it’s a weekend in Penang, a nature trip to Sabah, or a family staycation in Langkawi, those hotel and travel receipts might actually save you money come tax season.
Families who own or work in the tourism sector will also benefit. There’s a RM500,000 renovation deduction for tourism-related projects and a 100% tax exemption for Malaysia tour packages.
For families running small homestays, cafés, or travel businesses, this could mean more support to grow and attract local visitors.
Healthcare
Trying to quit smoking? You’ll be glad to know nicotine replacement therapies like lozenges and mists will stay tax-free until 2027.
This small move can make quitting a bit more affordable and your family healthier in the long run.
On the healthcare front, the government is also supporting better hospital funding and preventive care through various tax deductions.
All these measures reflect a gradual but steady focus on family wellness, both physical and financial.
Miscellaneous
The budget also encourages generosity and rewards it.
Donations to hospital charity funds are now tax-deductible, and those funds themselves are tax-free.
In other words, when you donate to help patients in need, you’re also reducing your tax bill.
The same goes for contributions to heritage, cultural, religious, and university hospital funds (all still deductible).
Companies that offer scholarships in ICT, engineering, accounting, and finance can now get double deductions. This should encourage more organisations to fund bright young Malaysians in these fields.
For Muslim families, there’s practical help for a meaningful journey. You can now withdraw up to RM10,000 from your EPF to fund your Hajj expenses.
Easier Tax Filing and Faster Refunds
Budget 2026 also promises a few behind-the-scenes improvements that make a real difference.
Families can expect faster tax refunds, meaning more money back in your account sooner.
The government is also pushing for e-invoicing, a digital system that makes claiming expenses smoother and quicker.
So when you file your next return, you’ll spend less time printing receipts and more time with your kids.
Little Changes, Big Impact
Budget 2026 might not change everything overnight, but it’s filled with small wins for families that can add up.
Parents who make the most of these benefits could save hundreds or even thousands of ringgit over the year.
It’s all about staying informed, keeping receipts, and planning ahead.
Whether it’s enrolling your child in daycare, buying your first home, or taking that long-awaited local holiday, these measures were made with Malaysian families in mind.
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