LHDN PCB Calculator Malaysia

The LHDN (LHDN — Lembaga Hasil Dalam Negeri, or Inland Revenue Board of Malaysia) publishes a PCB schedule annually that employers use to calculate the monthly tax deduction for each employee. The schedule contains tables that map your monthly salary and number of dependents to a specific PCB amount.

There are two main methods for calculating PCB:

**Computerised Method:** This is the more accurate method where the employer's payroll software calculates PCB based on your specific salary, EPF contribution, tax reliefs, and marital status. This method considers the cumulative effect of your income throughout the year and adjusts PCB to match your expected annual tax liability.

**Manual/Table Method:** Smaller employers without payroll software may use the LHDN PCB tables. These are simplified lookup tables where you find your monthly salary range and number of dependents to get the PCB amount. This method is less precise but easier to implement.

Our calculator uses the computerised method principles — it calculates your annual taxable income based on your salary and EPF, applies the tax brackets, and divides by 12 to get the monthly PCB. This gives a good estimate, though actual PCB may vary based on your specific relief claims and employer's calculation method.

The PCB schedule is updated annually to reflect changes in tax brackets and rates. Our calculator uses the 2026 tax brackets as the latest available.

You can check your PCB deduction records through the LHDN e-Hasil system (e-Hasil) at hasilexpotax.hasil.gov.my. Here is what you can do:

1. **View PCB History:** See all PCB deductions made by your employer for the current and previous years.

2. **Update PCB Details:** If your personal circumstances change (marriage, number of children, etc.), you can update your PCB category online so your employer deducts the correct amount.

3. **Download CP39:** The CP39 is the PCB deduction statement from your employer, showing month-by-month deductions for the year. This is essential for filing your annual tax return.

4. **Check Outstanding Tax:** View any outstanding tax balance from previous years.

5. **File Tax Returns:** Submit your BE (for employment income only) or B (for employment + other income) forms online.

If you believe your PCB is being over-deducted, submit Form CP22 to your employer with your updated details. If your employer does not adjust the PCB, you can contact LHDN for assistance.

When filing your annual tax return, compare the total PCB paid (sum of all monthly deductions) with your actual tax liability. If PCB exceeds your tax, you will receive a refund from LHDN, typically processed within 30 working days.

Our LHDN PCB calculator for 2026 helps Malaysian employees estimate their monthly tax deduction based on the latest tax brackets published by the Inland Revenue Board. Here is a step-by-step guide to using it:

**Step 1:** Enter your gross monthly salary. This is the amount stated in your employment contract before any deductions. The calculator will annualise this figure (multiply by 12) to determine your gross annual income for the tax calculation.

**Step 2:** Enter your EPF employee contribution rate. The standard rate is 11% for employees below age 55. The calculator computes your annual EPF contribution and uses it to reduce your taxable income. EPF contributions qualify as a tax relief up to a maximum of RM7,000 per year.

**Step 3:** Review the calculated PCB amount. The calculator applies the 2026 progressive tax brackets to your estimated annual taxable income (gross annual minus EPF relief) and divides the result by 12 to get the monthly PCB.

**Step 4:** Compare the result with your actual payslip PCB. If there is a significant difference, it may be because your employer applies additional reliefs (such as the RM9,000 individual relief or child relief) that our basic calculator does not account for.

**Step 5:** Use the annual summary to plan your finances. The calculator shows your estimated annual tax liability, effective tax rate, and how much of your income goes to tax. This information is valuable for budgeting and financial planning throughout the year.

**Important Note:** This calculator provides an estimate only. Your actual PCB may differ based on your specific tax relief claims, PCB category selected by your employer, and whether your employer uses the computerised or manual calculation method. For official tax planning, consult a tax professional or use the LHDN e-PCB system directly.

Let us walk through detailed PCB calculations for different salary levels using the 2026 LHDN tax brackets so you can understand exactly how your monthly tax deduction is determined.

**Example 1: RM3,000 Monthly Salary (RM36,000 Annual)**

Annual EPF (11% of RM3,000 × 12): RM3,960 Taxable income: RM36,000 - RM3,960 = RM32,040 Tax calculation: - RM0 - RM5,000: RM0 (0%) - RM5,001 - RM20,000: RM150 (RM15,000 × 1%) - RM20,001 - RM32,040: RM361.20 (RM12,040 × 3%) - Annual tax: RM511.20 - **Monthly PCB: ~RM43**

**Example 2: RM5,500 Monthly Salary (RM66,000 Annual)**

Annual EPF (11% of RM5,500 × 12): RM7,260 (capped at RM7,000 for relief) Taxable income: RM66,000 - RM7,000 = RM59,000 Tax calculation: - RM0 - RM5,000: RM0 (0%) - RM5,001 - RM20,000: RM150 (RM15,000 × 1%) - RM20,001 - RM35,000: RM450 (RM15,000 × 3%) - RM35,001 - RM50,000: RM900 (RM15,000 × 6%) - RM50,001 - RM59,000: RM990 (RM9,000 × 11%) - Annual tax: RM2,490 - **Monthly PCB: ~RM208**

**Example 3: RM9,000 Monthly Salary (RM108,000 Annual)**

Annual EPF (11% of RM9,000 × 12): RM11,880 (capped at RM7,000 for relief) Taxable income: RM108,000 - RM7,000 = RM101,000 Tax calculation: - RM0 - RM5,000: RM0 (0%) - RM5,001 - RM20,000: RM150 (RM15,000 × 1%) - RM20,001 - RM35,000: RM450 (RM15,000 × 3%) - RM35,001 - RM50,000: RM900 (RM15,000 × 6%) - RM50,001 - RM70,000: RM2,200 (RM20,000 × 11%) - RM70,001 - RM100,000: RM5,700 (RM30,000 × 19%) - RM100,001 - RM101,000: RM240 (RM1,000 × 24%) - Annual tax: RM9,640 - **Monthly PCB: ~RM803**

**Example 4: RM15,000 Monthly Salary (RM180,000 Annual)**

Annual EPF (11% of RM15,000 × 12): RM19,800 (capped at RM7,000 for relief) Taxable income: RM180,000 - RM7,000 = RM173,000 Tax calculation: - RM0 - RM5,000: RM0 (0%) - RM5,001 - RM20,000: RM150 (RM15,000 × 1%) - RM20,001 - RM35,000: RM450 (RM15,000 × 3%) - RM35,001 - RM50,000: RM900 (RM15,000 × 6%) - RM50,001 - RM70,000: RM2,200 (RM20,000 × 11%) - RM70,001 - RM100,000: RM5,700 (RM30,000 × 19%) - RM100,001 - RM150,000: RM12,000 (RM50,000 × 24%) - RM150,001 - RM173,000: RM5,980 (RM23,000 × 26%) - Annual tax: RM27,380 - **Monthly PCB: ~RM2,282**

These examples show that while marginal tax rates range from 0% to 35%, the effective tax rate for most middle-income Malaysian employees remains relatively modest.

The LHDN PCB system uses different categories based on your personal circumstances. Understanding these categories and how tax reliefs affect your PCB is essential for ensuring you are not over-deducted each month.

**PCB Categories:** - **Category M:** Single employee with no children - **Category MK:** Married employee with no children - **Category MT/MT1:** Married employee with 1 child - **Category MT/MT2:** Married employee with 2 children - And so on for additional children (MT3, MT4, etc.)

Your employer selects the PCB category based on the information you provide in your employee details form (typically Borang CP38 or the employer's equivalent). If your circumstances change — for example, you get married or have a child — you should update your category by submitting Form CP22 to your employer and updating your records on the LHDN e-Hasil portal.

**How Tax Reliefs Reduce Your PCB:** The computerised PCB calculation method considers your eligible tax reliefs to compute a more accurate monthly deduction. The main reliefs that affect PCB include:

- **Individual relief (RM9,000):** Automatically applied for all tax residents - **Spouse relief (RM4,000):** If your spouse has no income - **Child relief (RM8,000 per child):** For each unmarried dependent child - **EPF/insurance relief (up to RM7,000):** Based on your actual EPF contributions - **Lifestyle relief (up to RM2,500):** For books, sports, internet, gym - **Medical relief:** For parents' medical expenses and serious illnesses

Our basic calculator does not include all these reliefs (except EPF), which is why your actual PCB from your employer is often lower than our estimate. The difference is most significant for employees with children and spouses, who benefit from substantial additional reliefs.

**Key Takeaway:** If you find that our calculator overestimates your PCB compared to your actual payslip, this is normal — it means your employer is correctly applying your personal reliefs. The lower PCB deduction means more take-home pay for you each month.

Here are answers to common questions about the LHDN PCB system for 2026:

**What is the difference between PCB and income tax?** PCB (Potongan Cukai Bulanan) is the monthly tax deduction made by your employer throughout the year. Income tax is your total annual tax liability calculated by LHDN when you file your tax return. PCB is essentially an advance payment towards your income tax. If your total PCB paid exceeds your actual income tax, you receive a refund. If it is less, you must pay the difference.

**My PCB seems too high. What can I do?** First, verify that your employer has the correct PCB category and that your personal details are accurate. Submit Form CP22 to your employer with your correct information (marital status, number of children, etc.). You can also update your details through the LHDN e-Hasil portal, and the updated information will be reflected in subsequent PCB calculations. If the issue persists, you can contact LHDN directly for assistance.

**Does PCB apply to foreigners working in Malaysia?** Yes, if you are a tax resident in Malaysia (living in Malaysia for at least 182 days in a calendar year), PCB applies to you the same way it does to Malaysian citizens. Non-resident employees (those in Malaysia for less than 182 days) are subject to a flat tax rate of 30% on employment income, and their PCB is calculated differently using the non-resident PCB schedule.

**What happens if I change jobs during the year?** When you change jobs, your new employer starts fresh with PCB calculations. They may not know your income from your previous employer, which can lead to inaccurate PCB deductions for the first few months. To avoid over-deduction, provide your new employer with your previous employer's CP39 form showing your cumulative PCB for the year. When filing your annual tax return, combine the CP39 from both employers to get your total PCB paid.

**Is PCB the same for Sabah, Sarawak, and Peninsular Malaysia?** The PCB tax brackets are the same across all states in Malaysia. There are no regional variations in the income tax rates or PCB calculations. Whether you work in Kuala Lumpur, Johor Bahru, Kota Kinabalu, or Kuching, the PCB is calculated using the same national tax brackets.