Malaysia PCB Calculator 2025: Monthly Tax Deduction
Calculate your monthly PCB (Potongan Cukai Bulanan) with 2025 LHDN tax rates. Includes EPF relief, personal relief, and net salary after tax — free and instant.
Life insurance, education fees, medical expenses, etc.
What Is PCB (Potongan Cukai Bulanan)?
PCB stands for Potongan Cukai Bulanan, which translates to Monthly Tax Deduction. It is Malaysia's pay-as-you-earn (PAYE) tax system, administered by LHDN (Lembaga Hasil Dalam Negeri, or the Inland Revenue Board). Under this system, your employer deducts an estimated portion of your annual income tax from your salary each month and remits it directly to the government.
Monthly
Deducted from salary
Auto-calculated by employer
Progressive
0% — 30% tax rates
Higher earners pay more
Refundable
Overpayments returned
File annual return to claim
2025 Malaysia Progressive Tax Rates
Malaysia uses a progressive tax system — different portions of your income are taxed at different rates. You do NOT pay a single flat rate on your entire income. The table below shows the official LHDN rates for Year of Assessment 2025.
| Chargeable Income (Annual) | Rate | Tax on Bracket | Cumulative Tax |
|---|---|---|---|
| RM0 – RM5,000 | 0% | RM0 | RM0 |
| RM5,001 – RM20,000 | 1% | RM150 | RM150 |
| RM20,001 – RM35,000 | 3% | RM450 | RM600 |
| RM35,001 – RM50,000 | 6% | RM900 | RM1,500 |
| RM50,001 – RM70,000 | 11% | RM2,200 | RM3,700 |
| RM70,001 – RM100,000 | 19% | RM5,700 | RM9,400 |
| RM100,001 – RM400,000 | 25% | RM75,000 | RM84,400 |
| RM400,001 – RM600,000 | 26% | RM52,000 | RM136,400 |
| RM600,001 – RM2,000,000 | 28% | RM392,000 | RM528,400 |
| Above RM2,000,000 | 30% | — | — |
Tax Reliefs That Lower Your PCB
Tax reliefs reduce your chargeable income, which in turn reduces your PCB. The more reliefs you claim, the less tax you pay. Here are the key personal reliefs available:
Individual Relief
RM9,000Automatic for all individual taxpayers
EPF Contribution
Up to RM4,000Mandatory EPF employee contributions
Life Insurance + EPF
RM7,000 (combined)Life insurance premiums + EPF contributions
Medical Insurance
Up to RM3,000Medical and education insurance premiums
SSPN Savings
Up to RM8,000National Education Savings Scheme deposits
Lifestyle Expenses
Up to RM2,500Books, gadgets, sports equipment, internet
Medical (Parents)
Up to RM8,000Medical treatment for parents
Education Fees
Up to RM7,000Tertiary education fees for self
PCB Tax — Frequently Asked Questions
What is PCB and why is it deducted from my salary?
PCB (Potongan Cukai Bulanan) is Malaysia's monthly income tax deduction system. Instead of paying a lump sum at year-end, your employer deducts a portion of tax from your salary each month and remits it to LHDN. This spreads your tax payment across the year. At year-end, you file a return — if too much was deducted, you get a refund.
How is PCB different from EPF and SOCSO?
PCB is income tax — it goes to the government. EPF is retirement savings — it goes to your personal retirement account and earns dividends. SOCSO is social security — it provides workplace injury and invalidity coverage. All three are mandatory deductions, but only PCB is a tax. EPF and SOCSO are contributions that benefit you directly.
What happens if my employer doesn't deduct enough PCB?
If your employer under-deducts PCB, you may owe additional tax when you file your annual return (Form BE or Form B). LHDN will issue a tax bill for the shortfall. To avoid surprises, you can request your employer to deduct additional PCB voluntarily, or set aside money for the expected shortfall.
Can I claim back overpaid PCB?
Yes. When you file your annual tax return (by April 30 for employees, June 30 for business owners), LHDN calculates your actual tax liability. If your total PCB payments exceed your actual tax, LHDN will refund the difference — typically within 30 days for e-filing. This is why filing your tax return is important even if all tax was paid via PCB.
Do freelancers and gig workers need to pay PCB?
Freelancers and gig workers (Grab, Foodpanda, etc.) do not have an employer to deduct PCB. Instead, they must pay income tax via installment payments (CP500) twice a year. They should register with LHDN, estimate their annual tax, and pay in January and July. Alternatively, they can set up monthly direct debit payments.
What is the difference between PCB and CP38?
PCB is voluntary monthly tax deduction arranged through your employer. CP38 is a mandatory deduction order issued by LHDN when you have outstanding tax arrears — your employer is legally required to deduct additional amounts from your salary until the debt is settled. CP38 deductions are in addition to regular PCB.
How do bonuses affect my PCB calculation?
Bonuses increase your total annual income, which may push you into a higher tax bracket. LHDN provides a separate formula for bonus PCB so you don't get hit with an abnormally high deduction in the bonus month. The bonus PCB is calculated by spreading the bonus impact across the year, resulting in a more balanced deduction.
Disclaimer: This PCB calculator provides estimates for educational purposes only. Tax calculations depend on your individual circumstances including marital status, number of children, additional income sources, and applicable reliefs. For official calculations, visit hasil.gov.my or consult a qualified tax professional. DuitTools is not affiliated with LHDN.