Childcare tax relief expanded to cover children up to 12 years old under 2026 Budget
Starting with the 2026 assessment year, this benefit will be extended to parents with school-going children who still require after-school or transit care.
SHAH ALAM – The government has announced that the existing RM3,000 individual income tax relief for childcare expenses will be expanded to benefit more families beginning Year of Assessment 2026.
Finance Minister Datuk Seri Anwar Ibrahim said currently, the tax relief covered fees paid to registered daycare centres or pre-schools for children aged up to six years old.
Under the 2026 Budget, the relief will now include fees paid to registered daycare and transit centres for children up to 12 years old.
“Currently, the tax relief covers childcare and preschool fees for children up to six years old.
“Starting with the 2026 assessment year, this benefit will be extended to parents with school-going children who still require after-school or transit care,” he said when tabling the 2026 Budget in the Dewan Rakyat, today.
Anwar, who is also Prime Minister said the move reflected the government’s commitment to supporting family welfare and ensuring access to affordable, quality childcare services across the country.
The Finance Ministry officially tabled the Budget 2026 today, marking the fourth budget under the Madani administration and the first under the 13th Malaysia Plan (2026–2030).
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