PCB Calculator Malaysia 2026
✓ 2026Calculate your monthly PCB (Potongan Cukai Berjadual) tax deduction using official LHDN rates
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PCB Tax Calculation
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Try Complete Salary CalculatorWhat is PCB (Potongan Cukai Berjadual)?
PCB, or Potongan Cukai Berjadual, is the Malaysian monthly tax deduction (MTD) system where employers deduct income tax from employees' monthly salaries. Administered by the Lembaga Hasil Dalam Negeri (LHDN) or Inland Revenue Board of Malaysia, PCB ensures that income tax is collected gradually throughout the year rather than in one lump sum during tax season.
The PCB system was introduced to ease the financial burden on taxpayers and improve tax collection efficiency. Instead of paying your entire annual tax bill when filing your income tax return, PCB spreads your tax payments across 12 months, making it more manageable for employees and ensuring steady revenue for the government.
How Does PCB Work?
When you receive your monthly salary, your employer automatically calculates and deducts PCB based on your gross salary minus EPF contributions. The deducted amount is then remitted to LHDN on your behalf. This process happens before you receive your salary, which is why your payslip shows "net salary" after all deductions.
PCB calculations follow Malaysia's progressive tax system, where higher income brackets are taxed at higher rates ranging from 0% to 30%. The system considers several factors:
- Your monthly salary after EPF - PCB is calculated on salary after EPF deduction, not gross salary
- Marital status - Single taxpayers have a threshold of RM2,851/month, while married taxpayers start at RM3,851/month
- Individual relief - An automatic RM9,000 annual relief is applied to reduce your taxable income
- Tax rebates - If your chargeable income is RM35,000 or below, you receive a RM400 tax rebate
PCB vs Annual Income Tax: What's the Difference?
Many Malaysians confuse PCB with their annual income tax assessment. Here's the key difference: PCB is a monthly prepayment of your estimated annual tax liability, while your income tax is the actual tax you owe based on your complete annual income and eligible reliefs.
When you file your income tax return (Form BE or Form B) each year, LHDN calculates your actual tax liability. If you've overpaid through PCB (common when you claim additional reliefs like medical expenses, education, or insurance), you'll receive a tax refund. If you've underpaid, you'll need to pay the difference.
Who Needs to Pay PCB?
Not everyone needs to pay PCB. If your monthly income after EPF deductions is below the PCB threshold (RM2,851 for single, RM3,851 for married), no PCB will be deducted from your salary. This threshold ensures that lower-income employees don't have unnecessary deductions from their monthly pay.
Additionally, PCB amounts less than RM10 per month are not deducted, as stated in LHDN guidelines. This practical rule prevents minimal deductions that would be administratively inefficient.
💡 Pro Tip: Use our PCB Calculator above to estimate your monthly tax deduction. Understanding your PCB helps you plan your finances better and avoid surprises during tax season.
PCB Tax Brackets Malaysia 2026
Malaysia uses a progressive tax system where different portions of your income are taxed at different rates. The more you earn, the higher the tax rate on the additional income. Below are the official LHDN tax brackets for 2026:
| Chargeable Income (Annual) | Tax Rate | Tax Amount |
|---|---|---|
| First RM5,000 | 0% | RM0 |
| Next RM15,000 (RM5,001 - RM20,000) | 1% | RM150 |
| Next RM15,000 (RM20,001 - RM35,000) | 3% | RM450 |
| Next RM15,000 (RM35,001 - RM50,000) | 6% | RM900 |
| Next RM20,000 (RM50,001 - RM70,000) | 11% | RM2,200 |
| Next RM30,000 (RM70,001 - RM100,000) | 19% | RM5,700 |
| Next RM300,000 (RM100,001 - RM400,000) | 25% | RM75,000 |
| Next RM200,000 (RM400,001 - RM600,000) | 26% | RM52,000 |
| Next RM1,400,000 (RM600,001 - RM2,000,000) | 28% | RM392,000 |
| Above RM2,000,000 | 30% | On excess |
💡 Tax Relief (RM9,000)
Every Malaysian taxpayer automatically receives RM9,000 individual relief, which reduces your chargeable income. This is deducted before calculating tax.
🎁 Tax Rebate (RM400)
If your chargeable income is RM35,000 or below, you receive a RM400 tax rebate, further reducing your annual tax liability.
Example: If you earn RM60,000 annually after EPF and apply RM9,000 relief, your chargeable income is RM51,000. Your tax would be: RM0 (first RM5,000) + RM150 (next RM15,000 @ 1%) + RM450 (next RM15,000 @ 3%) + RM900 (next RM15,000 @ 6%) + RM110 (remaining RM1,000 @ 11%) = RM1,610 annual tax or approximately RM134/month PCB.
How PCB Is Calculated: Step-by-Step Example
Understanding how PCB is computed can be confusing. Below is a complete worked example using a RM5,000/month gross salary for a single Malaysian employee with the standard 11% EPF contribution. Every step follows the official LHDN (Inland Revenue Board) methodology.
Calculate Annual Gross Income
Monthly Salary x 12 months
Deduct EPF Contribution (11%)
Employee EPF is deducted from gross salary before tax calculation
Annual EPF: RM550 x 12 = RM6,600
Calculate Annual Income After EPF
Gross Annual Income minus Annual EPF
Apply Individual Relief (RM9,000)
Every Malaysian taxpayer receives an automatic RM9,000 individual relief
Apply Progressive Tax Brackets
Tax is calculated on RM44,400 chargeable income using LHDN progressive rates:
Convert to Monthly PCB
Divide annual tax by 12 to get the monthly PCB deduction
Check for Tax Rebate
If chargeable income is RM35,000 or below, a RM400 annual tax rebate applies. In this example, chargeable income is RM44,400 (above RM35,000), so no rebate applies.
Apply Rounding Rules (LHDN)
PCB is rounded to 2 decimal places, then to the nearest 5 cents. If the final amount is below RM10, PCB is RM0.
Final Result
For a single employee earning RM5,000/month with 11% EPF:
RM97.00/month
Annual PCB: RM1,164.00
Note: This example uses only the standard individual relief (RM9,000). Your actual PCB may differ if your employer factors in additional reliefs such as life insurance premiums, medical expenses, or lifestyle relief. Use the calculator above to check your specific situation.
PCB Quick Reference Table 2026
Use the table below to quickly look up approximate monthly PCB amounts for common salary levels. These figures are based on standard EPF 11% deduction with no additional reliefs claimed. Your actual PCB may vary depending on your personal circumstances.
| Monthly Salary | PCB (Single) | PCB (Married) |
|---|---|---|
| RM2,000 | RM0 | RM0 |
| RM3,000 | RM0 | RM0 |
| RM4,000 | RM27.65 | RM0 |
| RM5,000 | RM68.30 | RM18.30 |
| RM7,000 | RM197.00 | RM120.00 |
| RM10,000 | RM487.50 | RM385.00 |
| RM15,000 | RM1,118.75 | RM1,016.25 |
| RM20,000 | RM1,905.00 | RM1,802.50 |
Where Do PCB Rates Come From?
PCB (Potongan Cukai Berjadual) is mandated under Section 107 of the Income Tax Act 1967 and administered by the Lembaga Hasil Dalam Negeri (LHDN), also known as the Inland Revenue Board of Malaysia. LHDN publishes the official PCB schedule (Jadual Potongan Cukai Bulanan) that employers must follow when deducting monthly tax from employees.
Employer Legal Obligation
Under Malaysian law, employers are legally required to deduct PCB from employees whose monthly income exceeds the applicable threshold. Failure to comply can result in penalties under the Income Tax Act. Employers must remit the collected PCB to LHDN by the 15th of the following month.
PCB Thresholds
Category 1: Single
RM2,851/month
Monthly income after EPF below this amount = no PCB deducted
Category 2: Married
RM3,851/month
Married employees benefit from a higher threshold before PCB applies
Progressive Tax Rates (0% to 30%)
Malaysia uses a progressive tax system, which means your income is taxed in layers. Only the portion of income within each bracket is taxed at that bracket's rate. The current LHDN tax brackets are:
- First RM5,000: 0% (tax-free)
- RM5,001 - RM20,000: 1%
- RM20,001 - RM35,000: 3%
- RM35,001 - RM50,000: 6%
- RM50,001 - RM70,000: 11%
- RM70,001 - RM100,000: 19%
- RM100,001 - RM400,000: 25%
- RM400,001 - RM600,000: 26%
- RM600,001 - RM2,000,000: 28%
- Above RM2,000,000: 30%
PCB Is an Estimate, Not Final Tax
It is important to understand that PCB is an estimate of your annual tax liability, spread evenly across 12 monthly payments. The PCB schedule uses simplified assumptions (standard reliefs, no additional deductions) to arrive at the monthly amount. Your actual tax, determined when you file your annual return (Form BE for employment income), may be higher or lower depending on:
- Additional tax reliefs you claim (medical, education, lifestyle, etc.)
- Income from other sources (rental, freelance, dividends)
- Changes in salary during the year (bonuses, increments)
- Tax-exempt allowances and benefits-in-kind
Relationship Between PCB and Annual Tax Filing
After the end of each tax year (January to December), Malaysian employees must file their income tax return (Form BE) by 30 April of the following year (or 15 May for e-filing). During this filing:
- LHDN calculates your actual annual tax liability based on your total income and all eligible reliefs
- The total PCB deducted throughout the year is compared against this actual liability
- If you overpaid (PCB total exceeds actual tax), you receive a tax refund
- If you underpaid (PCB total is less than actual tax), you must pay the balance due
Official Source: For the most current PCB schedule and guidelines, visit the LHDN official website at www.hasil.gov.my and search for "Jadual PCB" (Schedule Monthly Tax Deduction).
PCB vs Income Tax: Understanding the Difference
One of the most common misconceptions among Malaysian employees is that PCB is their income tax. While closely related, PCB and income tax are different concepts. Understanding the distinction helps you plan your finances and avoid surprises at tax time.
PCB (Monthly Deduction)
- ● Deducted monthly from your salary by your employer
- ● An estimate of your annual tax divided by 12
- ● Uses only standard reliefs (individual RM9,000)
- ● Applies to employment income only
Income Tax (Annual Assessment)
- ● Calculated annually when you file Form BE
- ● Your actual tax liability based on full-year income
- ● Includes all eligible reliefs you claim
- ● Covers all income sources (employment, rental, etc.)
Practical Example: How PCB Adds Up Over 12 Months
Consider a single employee earning RM5,000/month with standard 11% EPF:
| Item | Monthly | Annual (x12) |
|---|---|---|
| Gross Salary | RM5,000 | RM60,000 |
| EPF Deduction (11%) | -RM550 | -RM6,600 |
| PCB Deduction | -RM97.00 | -RM1,164.00 |
| Take-Home Pay | RM4,353.00 | RM52,236.00 |
When Does PCB Over-Estimate or Under-Estimate Actual Tax?
PCB Over-Estimates (You Get a Refund)
- • You claim additional reliefs (medical, education, lifestyle)
- • You have life insurance or takaful premiums
- • You make donations to approved institutions
- • You claim child relief or disabled spouse relief
- • You contribute to PRS (Private Retirement Scheme)
PCB Under-Estimates (You Owe More)
- • You have undeclared income (rental, freelance)
- • You received a large bonus or commission
- • You changed jobs mid-year with a salary increase
- • You have benefits-in-kind not factored into PCB
- • You received stock options or share awards
Important: Even if your employer deducts PCB correctly every month, you are still required to file your annual income tax return (Form BE) by 30 April. PCB is not a substitute for tax filing -- it is merely a prepayment mechanism. Filing your return ensures you receive any refund you are owed or settle any outstanding balance.