PCB Calculator Malaysia 2026: Complete Guide to Monthly Tax Deduction (PCB/MTD)
If you’re an employer, payroll officer, or employee in Malaysia, understanding how Potongan Cukai Bulanan (PCB) works is essential.
The PCB Calculator Malaysia 2026 allows employers and employees to estimate the monthly income tax deducted from salaries based on the latest LHDN (HASiL) tax rules. Whether you’re processing payroll or checking your take-home pay, using the official calculator helps ensure your monthly deductions are as accurate as possible.
The official calculator is available here:
Official HASiL PCB Calculator 2026
What Is PCB (MTD) in Malaysia?
PCB (Potongan Cukai Bulanan), also known as Monthly Tax Deduction (MTD), is the amount of income tax deducted by an employer from an employee’s salary every month and paid directly to HASiL (LHDN).
Instead of paying a large amount of tax after filing your annual income tax return, PCB spreads the tax payment throughout the year.
Who Needs to Pay PCB?
Generally, PCB applies to employees whose employment income exceeds the taxable threshold determined by HASiL.
Your actual PCB depends on factors such as:
- Monthly salary
- Bonuses and commissions
- Tax residency status
- Marital status
- Number of children
- EPF contribution
- Approved tax reliefs
- Zakat
- Previous months’ salary and PCB deductions
What Is the PCB Calculator?
The PCB Calculator is an online tool provided by HASiL that estimates your monthly tax deduction based on the official calculation formula.
The calculator uses information such as:
- Monthly gross salary
- Tax category
- EPF contribution
- Additional remuneration
- Year-to-date income
- Previous PCB deductions
- Approved tax reliefs
The calculator follows the latest tax rules published by HASiL.
How to Use the PCB Calculator Malaysia 2026
For 2026 payroll, employers should refer to LHDN’s latest MTD Specification for MTD Calculation Using Computerised Calculation for 2026, together with the latest TP1 and TP3 forms.
In general, PCB is calculated based on the employee’s taxable monthly remuneration, statutory deductions, eligible tax reliefs declared by the employee, and the applicable resident or non-resident tax treatment.
Employers should ensure their payroll system or manual calculation method follows the latest LHDN specification for the relevant deduction year.
Step 1: Enter Employee Information
| Field | Description |
| Name | Employee’s name (optional). This is for reference only and does not affect the calculation. |
| Identification No. | Employee’s NRIC, passport, or identification number (optional). Used for reference only. |
| Month | Select the payroll month for which you want to calculate PCB. This is a required field. |
| Year | Select the tax year. For this guide, choose 2026. |
| Employee Category | Select the employee’s tax residency status, such as Malaysian tax resident or non-resident. This affects the tax calculation method. |
| Marital Status | Choose the employee’s marital status (e.g. Single, Married). Different categories are entitled to different tax reliefs. |
| Disabled Individual | Indicate whether the employee is a registered disabled person (OKU). Eligible individuals receive additional tax relief. |
| Disabled Spouse | Select “Yes” if the employee’s spouse is a registered disabled person and qualifies for the relevant tax relief. |
Step 2: Enter the Number of Children
For each category, you’ll see two columns:
- 100% – You are entitled to claim the full child relief because you are the sole claimant.
- 50% – The child relief is shared equally with another eligible parent, so each parent claims 50% of the relief.
Only enter the number of children under either 100% or 50% for each category. Do not count the same child twice.
Example
Suppose an employee has:
- 2 children aged under 18, with full entitlement
- 1 child studying for a diploma in Malaysia, with relief shared equally with the spouse
The entries would be:
| Category | 100% | 50% |
| (a) Under 18 years old | 2 | 0 |
| (c) Diploma or higher | 0 | 1 |
Tips
- Only include children who qualify for tax relief under the Income Tax Act.
- Select 100% only if you are entitled to claim the full relief.
- Select 50% if the child relief is shared with another eligible parent.
- Leave categories blank if they do not apply.
Step 3: Enter Accumulated Remuneration and Deductions (Year-to-Date)
This section captures the employee’s year-to-date (YTD) income, statutory deductions, and tax payments made in the current year, including amounts from a previous employer if applicable.
The calculator uses these accumulated figures to determine the correct PCB for the current month.
Tip: If the employee joined your company during the year, include the accumulated amounts from their previous employer (obtained from Form TP3).
When Should You Complete This Section?
You should complete this section if:
- The employee has worked earlier in the same calendar year.
- The employee joined your company after working for another employer.
- You are calculating PCB for any month after January.
- You want the PCB calculation to reflect the employee’s cumulative income and tax deductions accurately.
If you are calculating PCB for January and the employee has no previous employer or prior income for the year, most of these fields can be left as RM0.00.
Example
Suppose you are calculating PCB for July 2026, and the employee has earned the following from January to June:
- Gross salary: RM24,000
- Bonus: RM3,000
- Taxable allowances: RM1,200
- EPF contributed: RM2,640
- PCB already deducted: RM520
- Zakat paid: RM180
You would enter:
| Field | Amount |
| Gross salary | RM24,000 |
| Bonus/Commission | RM3,000 |
| Allowances | RM1,200 |
| EPF | RM2,640 |
| PCB Paid | RM520 |
| Zakat | RM180 |
The calculator will use these accumulated figures together with the current month’s salary to calculate the correct PCB.
Tips
- Always use year-to-date figures up to the previous month, not including the current month’s payroll.
- Include amounts from a previous employer if the employee has changed jobs during the year.
- Ensure the accumulated PCB entered matches the amount already remitted to HASiL.
- Completing this section accurately helps prevent under-deduction or over-deduction of PCB during the year.
Step 4: Enter the Current Month’s Remuneration
This section captures the employee’s current month’s payroll information. The PCB Calculator combines these figures with the accumulated year-to-date amounts entered in Step 3 to determine the correct Monthly Tax Deduction (PCB) for the current payroll month.
Tips
- Enter only the current month’s payroll figures in this section.
- Include all taxable salary components, such as overtime, commissions, bonuses, and allowances.
- Do not include non-taxable reimbursements or claims.
- If the employee receives Benefits-in-Kind (BIK) or employer-provided accommodation, ensure these values are included, as they form part of taxable employment income.
Step 5: Enter Additional Remuneration for the Current Month
This section is used to record one-off or irregular payments made to an employee during the current month. Unlike regular monthly salary, these payments are treated as additional remuneration and are subject to a separate PCB calculation method.
Examples include bonuses, salary arrears, commissions that are not paid monthly, gratuity, and other lump sum payments.
Note: If there is no additional remuneration for the month, simply leave all fields as RM0.00.
Step 6: Enter Current Month’s Tax Reliefs and Deductions
This section allows employees to claim eligible personal tax reliefs for the current year when calculating their Monthly Tax Deduction (PCB).
These deductions help reduce the employee’s chargeable income, which may result in a lower PCB deduction.
Important: Only enter expenses that qualify under the Income Tax Act and keep the supporting documents for future verification by HASiL.
Entering eligible tax reliefs allows the PCB Calculator to estimate your Monthly Tax Deduction more accurately.
Alternatively, you can still claim the tax reliefs when filing your annual income tax return, and any overpaid tax will be refunded by HASiL.
Final Step: Calculate Your PCB
Unlike tax reliefs, which reduce your chargeable income, tax rebates directly reduce the amount of income tax payable. This may further lower your Monthly Tax Deduction (PCB).
If neither rebate applies to you, simply leave both fields as RM0.00 and click Calculate.
The PCB Calculator will estimate the employee’s Monthly Tax Deduction (PCB) based on the information provided.
Tips
Save a Copy of the Calculation
Click Print to generate and save a PDF copy of the PCB calculation for your records. This is useful for payroll documentation and future reference.
Calculate the Next Month
Instead of entering the year-to-date figures manually again, click Calculate Next Month.
The PCB Calculator will automatically:
- Carry forward the accumulated year-to-date income.
- Update the accumulated PCB paid.
- Carry forward the accumulated EPF contributions and other relevant figures.
- Open the next payroll month, requiring you to enter only the new month’s payroll information.
This makes monthly PCB calculations faster, more accurate, and reduces the risk of data entry errors.
Understanding TP1 and TP3
Many employees overlook Forms TP1 and TP3, but they can significantly improve the accuracy of PCB deductions.
TP1
TP1 allows employees to inform their employer about eligible tax reliefs during the year, such as:
- Medical expenses
- Education expenses
- Lifestyle relief
- Insurance
- Childcare
- Sports equipment
- Other approved reliefs
Submitting TP1 may reduce monthly PCB.
TP3
TP3 is used when an employee joins a new employer during the same tax year.
It enables the new employer to calculate PCB based on:
- Previous employer’s income
- PCB already deducted
- EPF contributions
Without TP3, employees may experience over-deduction or under-deduction.
PCB Submission Deadlines for Employers
PCB must be remitted to LHDN by the 15th of the following month. If the 15th falls on a weekend or public holiday, submission must be made on the next working day.
Late submissions attract penalties. Consistent defaults may trigger a LHDN audit.
| Action | Deadline |
|---|---|
| Monthly PCB submission via e-PCB Plus | 15th of the following month |
| CP39 text file upload (alternative method) | 15th of the following month |
| Employee TIN verification before first submission | Before first relevant PCB submission / before processing payroll for included employees |
Common PCB Mistakes Employers Make
Even experienced payroll teams encounter errors in PCB calculation. The most common include:
- Using an Outdated or Unofficial PCB Calculator — PCB calculations are updated whenever there are changes to tax legislation or HASiL’s calculation methodology. Employers should always use the official PCB Calculator provided by HASiL or payroll software that complies with the latest PCB specifications.
- Avoid relying on outdated tax tables or unofficial third-party calculators, as they may not reflect the latest tax rules.
- Failing to update employee TINs — submissions may be delayed or rejected if employee TIN details are inaccurate or incomplete.
- Not applying TP3 forms — when an employee changes jobs mid-year, the TP3 captures prior employer deductions to avoid under-deduction or over-deduction of tax.
- Calculating PCB on non-taxable allowances — travelling allowances and certain meal allowances are exempt up to defined limits
A common query from new employees is how to locate their TIN. You can direct them to this guide on how to search for your TIN via MyTax.
Should You Use an Online PCB Calculator or Payroll Software?
For small employers, an online PCB calculator may be useful for estimating individual employee deductions. However, businesses managing multiple employees, variable income, bonuses, new joiners or mid-year tax adjustments should be more careful, as manual calculation increases the risk of payroll errors.
Payroll software can help employers calculate PCB more consistently, prepare payroll records and generate the necessary submission files, depending on the software’s features and vendor support. Employers should still verify that the system is updated according to LHDN’s latest 2026 PCB specification.
FAQ: PCB Calculator Malaysia 2026
1. Can PCB Be Different Every Month?
Yes.
Your PCB may change if:
- You receive overtime
- You receive commission
- You receive bonuses
- Your salary changes
- You submit TP1
- You change tax category
- Your EPF contribution changes
This is normal.
2. Does Paying PCB Mean You Don’t Need to File Income Tax?
No.
Employees are still generally required to submit their annual income tax return if required under Malaysian tax laws.
During e-Filing:
- If PCB paid is more than actual tax payable, you may receive a refund.
- If PCB paid is less, you’ll need to pay the balance.
3. Is the PCB Calculator always accurate?
The calculator is accurate only if the correct payroll information is entered. Incorrect salary, EPF, bonus, or tax details will produce inaccurate results.
4. What happens if I overpay PCB for an employee?
If an employee has overpaid PCB (Monthly Tax Deduction) during the year, the excess amount is not refunded by the employer. Instead, the employee can claim the overpaid tax when filing their annual income tax return (e-Filing) with HASiL.
After the tax return is assessed:
- If the total PCB deducted is more than the actual tax payable, HASiL will refund the excess tax to the employee.
- If the PCB deducted is less than the actual tax payable, the employee will need to pay the outstanding balance.
5. Can I be penalised for incorrect PCB deductions?
Yes. Employers are responsible for deducting and remitting the correct amount of PCB to HASiL. Failure to do so may result in penalties under the Income Tax Act 1967.
Examples include:
- Failing to deduct PCB when required.
- Under-deducting or incorrectly calculating PCB.
- Failing to remit PCB to HASiL by the prescribed deadline.
- Submitting incorrect employee information that results in inaccurate PCB deductions.
Final Thoughts
The PCB Calculator Malaysia 2026 is an essential tool for both employers and employees to estimate Monthly Tax Deduction (MTD) accurately. By understanding the factors that affect PCB such as salary, bonuses, EPF contributions, TP1, and TP3, you can minimize unexpected tax adjustments when filing your annual income tax return.
For the most accurate results, always use the official HASiL calculator with complete and up-to-date payroll information, and keep your employee tax details current throughout the year.
For businesses managing complex payrolls or multi-entity structures, CentralHR’s payroll outsourcing services can handle end-to-end PCB compliance, including PCB submission.
Disclaimer: This article is for general HR and payroll information only and does not constitute legal, tax or professional advice. Employers should refer to the latest official guidance from LHDN, JTKSM and the applicable Malaysian laws, or seek professional advice for specific cases.
