PCB Calculator Malaysia
Estimate your monthly Potongan Cukai Berjadual (MTD) deduction. Enter your salary, marital status, TP1 declarations, and Zakat — for both resident and non-resident employees.
Employment Details
Before any deductions (EPF, PCB)
Tax Residency
TP1 Declarations (optional)
Enter your monthly salary and tap Calculate PCB to see your estimated monthly tax deduction.
How PCB Is Calculated
PCB (Potongan Cukai Berjadual), also known as Monthly Tax Deduction (MTD), is the income tax instalment your employer deducts each month and pays directly to LHDN. It is computed by projecting your annual tax liability and dividing it into 12 equal payments. The formula method — used by this calculator and most modern payroll software — gives a more precise result than the older schedule tables.
Annualise Income
Multiply monthly gross salary by 12 to get projected annual income.
Deduct EPF & Reliefs
Subtract EPF contributions (11%) plus all declared reliefs (TP1 form).
Apply Tax Brackets
Apply Malaysia's progressive tax rates to the chargeable income. Subtract rebates and Zakat.
Divide by 12
The resulting annual tax divided by 12 is your monthly PCB deduction.
PCB vs Income Tax — What's the Difference?
Both refer to the same underlying tax. PCB is the monthly collection mechanism; income tax is the annual liability.
| Aspect | PCB / MTD | Annual Income Tax |
|---|---|---|
| Frequency | Monthly (each pay cycle) | Once a year (by 30 April) |
| Who pays LHDN? | Employer on your behalf | You directly (or via CP500) |
| Basis | Projected annual tax ÷ 12 | Actual annual chargeable income |
| Reliefs used | TP1 declarations + EPF | All reliefs + receipts in Form BE |
| Reconciliation | At year-end via Form BE | Refund or top-up after filing |
| Zakat | Direct PCB rebate (monthly) | Direct tax rebate in Form BE |
Reducing Your PCB with TP1 & Zakat
Most employees pay more PCB than necessary because they never submit Form TP1 to their HR. Here is what you can declare.
Form TP1 — Additional Reliefs
- Life insurance / takaful (max RM3,000)
- Medical & dental (max RM10,000)
- Education fees — self (max RM7,000)
- Spouse relief RM4,000 (if non-working)
- Child relief RM2,000 / RM8,000 each
- Private retirement scheme (PRS)
- Sports equipment, gym fees, etc.
Zakat — Direct PCB Rebate
- Must be paid to an official State Islamic Religious Council (MAJLIS)
- Declare monthly Zakat amount to your employer
- RM1 Zakat = RM1 PCB reduction (more powerful than a relief)
- Applies to income Zakat (Zakat Pendapatan)
- Supported by LHDN circular — ask your HR for the TP declaration form
- Reduces PCB dollar-for-dollar, up to the PCB amount due
Frequently Asked Questions
Penafian: Kalkulator dan artikel ini disediakan untuk tujuan pendidikan dan maklumat umum sahaja. Keputusan adalah anggaran dan tidak harus dianggap sebagai nasihat kewangan, cukai, undang-undang, atau pelaburan. Sila rujuk pihak berkuasa berkaitan, institusi kewangan, atau profesional bertauliah sebelum membuat keputusan kewangan.
What Is PCB / MTD in Malaysia?
Potongan Cukai Berjadual (PCB), also known as Monthly Tax Deduction (MTD), is the mandatory income tax withholding system in Malaysia. Under PCB, your employer deducts an estimated share of your annual income tax liability from each monthly salary payment and remits it to the Inland Revenue Board (LHDN) on your behalf. PCB is not a separate tax — it is a prepayment of your annual income tax liability, spread across 12 monthly instalments.
The PCB system was introduced to prevent a large lump-sum tax payment at year-end. If your total annual PCB deductions equal your actual tax liability, you owe nothing when filing your return. If PCB was over-deducted, LHDN issues a refund. If under-deducted (e.g., because of a year-end bonus or undeclared reliefs), you pay the balance when filing.
How PCB Is Calculated (Formula Method)
LHDN uses the formula method to calculate PCB. The steps are:
- 1Annualise gross monthly salary: Monthly Salary × 12
- 2Deduct EPF contributions (employee 11%, capped at RM4,000 per year via TP1 or formula)
- 3Deduct TP1 declared reliefs (life insurance, medical, education, spouse, children, etc.)
- 4Apply personal relief: RM9,000 (resident) or RM0 (non-resident)
- 5The result is the annual Chargeable Income
- 6Apply progressive income tax rates to compute annual tax payable
- 7Subtract personal rebate (RM400 for income ≤ RM35,000), spouse rebate (RM400), and Zakat rebate
- 8Divide remaining annual tax by 12 to get monthly PCB
Example PCB Calculation
Example: Married employee, 2 children, RM6,000 gross/month
Compared to RM6,000 × 12 = RM72,000 gross, effective tax is only about 3.3% due to reliefs. PCB is just RM200/month.
PCB at Different Salary Levels (Single Resident, 2024)
| Gross Monthly Salary | Annual Chargeable Income | Est. Monthly PCB | Effective Tax Rate |
|---|---|---|---|
| RM 2,500 | RM 8,300 | RM 0 | 0% |
| RM 3,000 | RM 14,200 | RM 0 | 0% |
| RM 4,000 | RM 25,320 | ≈ RM 8 | ~0.2% |
| RM 5,000 | RM 36,400 | ≈ RM 50 | ~1.0% |
| RM 7,000 | RM 58,560 | ≈ RM 230 | ~3.3% |
| RM 10,000 | RM 84,800 | ≈ RM 600 | ~6.0% |
| RM 15,000 | RM 129,800 | ≈ RM 1,600 | ~10.7% |
Estimates for single, resident employee with standard personal relief only. Actual PCB will be lower if TP1 reliefs are declared.
Reduce PCB with TP1 Declarations and Zakat
The most effective way to reduce your monthly PCB is to submit Form TP1 to your employer declaring all eligible reliefs. The table below shows the most valuable reliefs you can declare:
| Relief / Rebate | Type | Maximum Amount | How It Helps |
|---|---|---|---|
| Personal Relief | Relief | RM 9,000 | Auto-applied, no TP1 needed |
| Spouse Relief | Relief | RM 4,000 | Declare via TP1 |
| Child Relief | Relief | RM 2,000 per child | Declare via TP1 |
| EPF / Life Insurance | Relief | RM 4,000 combined | Employer applies EPF; life ins via TP1 |
| Zakat (official body) | Rebate (RM-for-RM) | Actual amount paid | Strongest reducer — submit monthly via TP1 |
| Medical / Disability | Relief | RM 6,000–RM10,000 | Declare via TP1 with receipts |