Free tool
Monthly Tax Deduction (MTD / Potongan Cukai Bulanan) — type a salary, see the deduction.
PCB this month
Calculated with the same engine that runs payroll in Taokeh — LHDN's computerised MTD formula for YA 2026.
Rates current as of July 2026 (YA 2026).
| Item | Employee | Employer |
|---|---|---|
| EPF | 0.00 | 0.00 |
| SOCSO | 0.00 | 0.00 |
| EIS | 0.00 | 0.00 |
| PCB (MTD) | 0.00 | — |
| Net take-home | 0.00 | — |
| Total employer cost | — | 0.00 |
Taokeh runs this for every employee automatically — payroll, EPF/SOCSO/EIS files and CP39, from RM45/month. See pricing → · Read the PCB guide → · See how EPF/SOCSO/EIS are calculated → · Billing customers too? Free invoice generator →
Assumptions: tax resident, age under 60, EPF employee 11%, no TP1 optional reliefs, no zakat, no disabled-self/spouse. Estimates only — your payroll may include reliefs, zakat or other factors. The official reference is LHDN's e-PCB / e-CP39.
PCB is not a flat percentage of your salary. LHDN projects your chargeable income for the whole year from your current monthly pay, then subtracts your allowable deductions — chiefly your mandatory EPF contributions, up to the annual limit LHDN sets.
From that projected income it removes the reliefs for your category: the individual relief everyone gets, a spouse relief if your spouse has no income, and a relief for each child you claim. What remains is the chargeable income the tax is worked out on.
The computerised MTD formula then applies the progressive tax rates to that chargeable income, nets off the rebate where it applies, and divides the result across the remaining months of the year — so the amount deducted each month settles your projected annual tax gradually rather than in one bill.
As the employer you withhold that amount from the employee’s pay, remit the total to LHDN by the statutory monthly deadline, and report it on the CP39 monthly return. A bonus is taxed on top for the year, which is why it lifts the deduction in the month it is paid.
PCB (Potongan Cukai Bulanan), also called MTD (Monthly Tax Deduction), is income tax your employer withholds from your monthly pay and remits to LHDN on your behalf. It spreads your annual tax across the year instead of leaving one bill at filing time.
PCB is not a flat percentage of salary. It is worked out on your chargeable income after allowable deductions and reliefs — your projected annual income, less EPF (up to the LHDN limit), less the individual, spouse and child reliefs for your category — run through LHDN’s computerised MTD formula for the year.
Yes. A bonus or other additional remuneration is taxed on top of your regular pay for the year, so it raises the PCB deducted in the month it is paid. This calculator has an optional bonus field so you can see that month’s figure.
No. It is an estimate using LHDN’s computerised MTD formula for YA 2026 and the standard assumptions below. Your actual payroll may include TP1 reliefs, zakat or other factors. The official reference is LHDN’s e-PCB / e-CP39.