PCB Calculator Malaysia 2026 – Calculate Monthly Tax Deduction Free

What is PCB?

PCB stands for Potongan Cukai Bulanan. It is also known as Potongan Cukai Berjadual. In English it is called Monthly Tax Deduction or MTD. This is a system where income tax is automatically deducted from your salary. It was introduced by Lembaga Hasil Dalam Negeri Malaysia (LHDN).

PCB is not a tax. It is simply your income tax collected in twelve parts instead of one lump sum. Your employer works out the amount takes it from your paycheck and pays it to LHDN on your behalf. When tax season comes around you usually just settle any difference. Not face a bill.

If much tax is deducted over the year you get a refund after filing your BE return or through e-Filing. If too little is taken out you have to pay the rest.

How PCB Is Calculated

PCB is based on your expected income, not just what you earn this month. Here’s how it works:

• First project your income. Take your month’s pay and multiply it by 12. Add any income you’ve already received this year.
• Next subtract your EPF contribution. Employee contributions are allowed as a deduction. Only up to RM4,000 per year for PCB purposes.
• Then deduct any reliefs you qualify for. The individual relief of RM9,000 is applied automatically. Additional reliefs. Such as lifestyle, medical, education, life insurance, SOCSO/EIS, spouse or children. Apply only if you declare them.
• Apply the tax rates to the remaining amount to get your estimated annual tax.
• Deduct. Zakat. This includes the RM400 rebate if your chargeable income is RM35,000 or less.
• Finally divide the remaining tax by the number of months left in the year.

One rule: if the calculated PCB for a month is less than RM10 no deduction is made.

The formula in terms

PCB = [ (P − M) × R + B − (Z + X) ] ÷ (n + 1)

Where:

• P is your estimated annual chargeable income
• M, R and B come from the LHDN tax rate table
• Z is the zakat you’ve already paid
• X is the PCB already deducted this year
• n is the number of months remaining after the current one

LHDN releases a document every year called the Specification for Monthly Tax Deduction. This explains the calculation. The calculator above follows this method so you don’t have to do the math yourself.

Malaysia Income Tax Rates Used

Malaysia uses a progressive tax system. That means higher rates apply to the part of income that falls into that bracket. Someone earning RM60,000 in income does not pay 13% on all of it. They pay 0% on the RM5,000 1% on the next RM15,000 3% on the next RM15,000 8% on the next RM15,000 and 13% only on the last RM10,000. The total effective rate is much lower than the top bracket suggests.

double-check the latest tax rates on the LHDN website before using them for official purposes.

What the Calculator Accounts For

• salary: your fixed monthly income
• Fixed allowances: taxable pay that does not go into EPF
• Bonus and commission: treated as extra pay, which changes how PCB is calculated
• EPF contribution: defaults to 11% but can be adjusted
• Marital status and spouse income: affects which relief category applies
• Number of children: RM2,000 relief per child under 18 more for tertiary education
• Zakat paid: reduces your PCB directly
• Optional reliefs declared via Form TP1

Why your PCB may differ from a colleagues

Two people earning the same salary can have different PCB amounts. Married employees start paying PCB at an income level than single employees. Even though the tax rates are the same having children paying zakat or declaring additional reliefs changes the numbers.

Reducing Your PCB Legally

The overlooked way to reduce PCB is Form TP1. This is the official form employees fill out to tell their employer about tax reliefs beyond the personal and EPF deductions. Once submitted the employer uses these details to lower your projected income. That leads to a monthly tax deduction.

Common reliefs claimed through TP1 include:

• Lifestyle spending
• Medical bills for parents
• Education fees
• SSPN deposits
• Life insurance premiums
• Childcare costs

Submit the form with receipts. Keep your records for seven years in case LHDN asks for proof.

Not filling out TP1 doesn’t mean you lose money forever. You can still claim back any tax during your annual filing.. You won’t get the refund until after you file. Which could take up to a year.

Employer Obligations

Employers must deduct PCB and send it to LHDN by the 15th of the following month. Payments are made through e-PCB e- PCB or e-CP39. If payments are late penalties apply under Section 107(2) of the Income Tax Act 1967. If an employer fails to deduct PCB they become personally responsible for the amount.

Important forms to know:

• CP39: monthly remittance statement
• EA Form: employee statement (issued by end of February)
• CP22: new employee notification
• CP22A: notice of employment ending

For a full guide on other contributions like EPF, SOCSO and EIS check our complete payroll calculator suite.

Frequently Asked Questions

Is PCB the same as income tax?

No. PCB is a monthly estimate of your income tax. Your actual tax liability is determined when you file your return. The difference is settled then. Either through a refund or a top-up.

Do I still need to file if PCB has been deducted?

You might be exempt from filing if you have one employer, no other sources of income and no additional reliefs to claim.. Most people benefit from filing to receive a refund.

Is bonus subject to PCB?

Yes. Bonus is considered income and must be taxed. However it is calculated separately from your monthly PCB. A large bonus can cause a spike in tax deduction for that month.

Why did my PCB suddenly increase?

Common reasons include:

• A salary raise
• A bonus paid in that month
• Reaching the RM4,000 cap for EPF relief
• Corrections for previous under-deductions

Do foreign workers pay PCB?

Yes. Non-residents who spend than 182 days in Malaysia are usually taxed at a flat 30% rate, with no reliefs until they qualify as residents.

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EPF Calculator Malaysia
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