Malaysia Monthly Tax Deduction (PCB) Calculator (2026)

Calculate your monthly tax deduction (PCB) and annual income tax liabilities under Malaysia's 2026 progressive tax rates.

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Malaysia Financial Tools

Active 2026 tax engine configurations with local compliance factors.

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Salary Tax Brackets Contractor

2026 Statutory FrameworkMalaysia progressive resident tax rates max out at 30% for taxable income > RM 2,000,000. Personal resident relief is RM 9,000, and EPF tax relief is capped at RM 4,000.

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MYR / YEAR

RM 12,000RM 500,000

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USD Benchmarking

1 USD = 4.68 MYR

Live Output Metrics

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84%Take-Home

Net: 84%Tax: 4%SS: 12%

Gross RemunerationRM 72,000

Income Tax Liabilities-RM 2,993

Social Contributions (Employee)-RM 8,424

Take-Home Pay EstimateRM 60,583

Effective Rate4.2%

Includes EPF (employee rate 11%), SOCSO and EIS contributions capped at RM 6,000 monthly salary. Non-residents pay a flat 30% tax rate.

Comparative Take-Home Pay (USD Equiv)

Detailed statutory analysis & overview

Potongan Cukai Bulanan, also called Monthly Tax Deduction or MTD, is Malaysia's pay-as-you-earn mechanism, and it is the employer's legal obligation rather than the employee's. Under the Income Tax (Deduction from Remuneration) Rules, an employer must compute PCB on every payment of remuneration and remit it to the Lembaga Hasil Dalam Negeri by the 15th day of the following month, usually through the e-PCB Plus or e-CP39 portals. The calculation is deliberately forward-looking: rather than taxing each month in isolation, the computerised formula annualises your remaining income for the year, applies the progressive scale and your declared reliefs, then spreads the resulting liability across the remaining months, which is why PCB can move sharply mid-year after a raise or a bonus. Crucially, PCB is only an estimate of your final liability, and employees who never tell their employer about reliefs they are entitled to overpay all year and wait for a refund. Two forms fix that: the TP1 lets you declare reliefs during the year so PCB falls immediately, and the TP3 reports income from a previous employer so a mid-year job change does not underdeduct.

Key Regulatory Parameters & Frameworks (YA 2026)

Rule 01

Employer Remittance Deadline

PCB deducted in a given month must reach LHDN by the 15th of the following month, accompanied by the CP39 statement listing each employee and amount. Late or short remittance exposes the employer, not the employee, to penalties under section 113 and can attract prosecution, and the unremitted tax remains a debt due from the employer to the government.

Rule 02

Computerised Calculation vs. the Schedule

Employers may use either the PCB schedule tables or the computerised calculation method specified by LHDN, which most payroll systems implement. The computerised method projects your normal remuneration to year end, deducts EPF and other allowable reliefs subject to the statutory caps, applies the resident progressive rates, subtracts any rebate, and divides the balance across the remaining months. It generally tracks the true liability far more closely than the schedule method.

Rule 03

Form TP1: Claiming Reliefs During the Year

An employee may submit form TP1 to their employer, typically up to twice a year, declaring reliefs and rebates such as medical expenses for serious illness, lifestyle expenses, education fees, insurance premiums, SSPN deposits, and approved donations. The employer must take these into account in the PCB computation, which lowers the monthly deduction immediately instead of leaving you to reclaim the excess after filing. Supporting receipts must be retained for seven years in case LHDN audits.

Rule 04

Form TP3: Mid-Year Job Changes

When you join a new employer part-way through the year, form TP3 tells them your accumulated remuneration, EPF, and PCB from previous employment in the same calendar year. Without it, the new employer annualises only the salary they pay you, which understates your total income for the year and leaves you with a shortfall to settle on assessment.

Rule 05

PCB as Final Tax and Separate Bonus Formula

An employee may elect not to file a return and treat PCB as the final tax, but only where the conditions are met: employment income from a single employer for the full year, PCB correctly deducted, no other income, and no election for combined assessment with a spouse. Separately, bonuses, director's fees, and other additional remuneration are run through their own PCB formula rather than simply added to the month's salary, which is why a bonus month shows an unusually large deduction. Where you owe arrears of past tax, LHDN can also issue a CP38 direction requiring the employer to deduct an extra fixed amount on top of ordinary PCB.

PCB Deduction on RM 6,000 Monthly Salary

Scenario Context: Malaysian resident, single with no dependants, employed by one employer for the full calendar year on RM 6,000 gross per month, with no TP1 reliefs declared.

Calculation Stage	Computed Value
Monthly gross remuneration	RM 6,000 (RM 72,000 annualised)
EPF employee contribution at 11%, capped for relief purposes	RM 660 per month; EPF relief restricted to RM 4,000 per year
Individual relief	RM 9,000 per year
SOCSO and EIS employee contributions (RM 6,000 wage ceiling)	Approximately RM 41.55 per month, deductible within the RM 350 insurance and approved scheme relief
Estimated chargeable income after statutory reliefs	Roughly RM 58,000 to RM 59,000
Annual tax under the resident progressive scale	Approximately RM 2,300 to RM 2,600

Final Deducted Result:PCB of roughly RM 190 to RM 220 per month. Declaring lifestyle, medical, insurance, or education reliefs on a TP1 would reduce this immediately rather than generating a refund after filing, which matters because refunds are only paid once the Form BE is processed after 30 April the following year.

Frequently Asked Questions (FAQ)

Is PCB my final tax?▼

Only if you qualify for the PCB as final tax election, which requires employment income from a single employer for the whole year, correct PCB deduction, no other sources of income, and no joint assessment election with a spouse. Most people do not qualify, or would lose out by not filing, because reliefs not declared on a TP1 during the year can only be recovered by submitting a Form BE and claiming the refund.

Why did my PCB jump after a salary increase?▼

The computerised formula reprojects your annual income each time your remuneration changes and then spreads the revised liability across the remaining months of the year only. A raise in September has to recover the additional tax on the whole year's higher projection across four months rather than twelve, so the monthly deduction rises by more than the raise alone would suggest. It normalises in January.

What happens to my PCB if I resign mid-year?▼

Your employer must notify LHDN of your cessation using form CP22A, generally at least 30 days before the last day of employment, and is required to withhold any money due to you, including final salary and benefits, for up to 90 days or until LHDN issues clearance. If you are leaving Malaysia permanently, form CP21 applies instead. Give your new employer a TP3 so their PCB computation reflects what you already earned.

Can I ask my employer to deduct more PCB than the formula produces?▼

Yes. An employee may request in writing that the employer deduct an amount above the computed PCB, which is useful if you have rental or side income with no withholding and want to avoid a lump sum on assessment. Alternatively, you can make direct instalment payments to LHDN under a CP500 arrangement, which is how non-employment income is normally prepaid in bi-monthly instalments.