PCB Explained: How Much Tax Is Deducted From Your Malaysian Salary?

PCB (Potongan Cukai Bulanan), also called MTD (Monthly Tax Deduction), is the income tax your employer takes out of your salary every month and pays to LHDN on your behalf.

At what salary do you start paying tax?

After the automatic RM9,000 personal relief (and EPF relief), a single person with no other reliefs typically starts owing income tax once annual income is around RM37,000–40,000 — roughly RM3,100–3,300 a month. Below that, your chargeable income falls in the 0% band.

This is only a rule of thumb — children, spouse, and other reliefs push the threshold higher.

How PCB is calculated

PCB isn't a flat percentage. It uses LHDN's MTD formula, which factors in:

• Your monthly remuneration (salary, allowances, bonuses)
• Marital status and number of children
• EPF contributions
• Reliefs you've declared to your employer (TP1 form)

The employer applies the formula each month so that, by year-end, the total PCB roughly equals your actual annual tax.

Why you might get a refund

PCB is an estimate. If you claim reliefs at filing that your employer didn't account for (lifestyle, insurance, medical, etc.), your actual tax ends up lower than total PCB paid — so LHDN refunds the difference after you file.

That's why filing matters even if PCB was deducted: filing is how you claim back the overpayment.

Tip: declare reliefs early with form TP1

If you have significant reliefs, submit form TP1 to your employer so they reduce your monthly PCB — better cash flow than waiting for a year-end refund.

Want your exact monthly figure? Use the free tax calculator — the quick estimate shows monthly tax from your salary, marital status and children.