The idea
PCB tries to collect your tax for the year in equal monthly slices. Each month LHDN’s formula asks: if you’re paid like this for the rest of the year, what will your chargeable income be? It works out the year’s tax on that, takes off what you’ve already paid, and divides the rest by the months left, including this one.
PCB = [(P − M) × R + B − (Z + X)] ÷ (n + 1)
- P: chargeable income for the year. Pay so far, plus this month’s, plus this month’s pay for each month left, all after EPF; less your reliefs.
- M, R, B: from the tax table, the start of P’s band, its rate, and the tax up to M after rebates.
- Z, X: zakat and PCB already paid this year.
- n + 1: months left, including this one. In January it’s 12.
The tax table
| Chargeable income | Rate | Tax on the band below |
|---|---|---|
| First RM5,000 | 0% | – |
| RM5,001 to RM20,000 | 1% | RM0 |
| RM20,001 to RM35,000 | 3% | RM150 |
| RM35,001 to RM50,000 | 6% | RM600 |
| RM50,001 to RM70,000 | 11% | RM1,500 |
| RM70,001 to RM100,000 | 19% | RM3,700 |
| RM100,001 to RM400,000 | 25% | RM9,400 |
| RM400,001 to RM600,000 | 26% | RM84,400 |
| RM600,001 to RM2,000,000 | 28% | RM136,400 |
| Over RM2,000,000 | 30% | RM528,400 |
B in LHDN’s table already takes off the RM400 self rebate (and RM400 spouse rebate in category 2) when P is RM35,000 or less. That’s why a single person on RM5,000 a month pays RM110, but someone on RM3,400 pays nothing all year.
LHDN’s worked example
LHDN’s 2026 specification works through an employee earning RM5,500 a month with RM605 EPF, married to a working spouse, with three children. The calculator reproduces each month exactly:
- EPF relief. Only RM4,000 of EPF a year counts. January’s RM605 leaves RM3,395.00 for the 11 months left: RM308.63 a month (K2).
- P. (RM5,500 − RM605) + (RM5,500 − RM308.63) × 11 − RM9,000 − 3 × RM2,000 = RM47,000.07.
- Tax for the year. (RM47,000.07 − RM35,000) × 6% + RM600 = RM1,320.00.
- January’s PCB. RM1,320.00 ÷ 12 = RM110.00.
| Month | What changes | P | PCB |
|---|---|---|---|
| January | — | RM47,000.07 | RM110.00 |
| February | RM110 already paid | RM47,000.00 | RM110.00 |
| March | RM300 of reliefs claimed on TP1 | RM46,700.07 | RM108.20 |
| April | RM8,250 bonus | RM54,650.00 | RM833.70 |
April’s PCB has two parts: RM106.20 on the salary, and RM727.50 on the bonus, which is the year’s tax with the bonus (RM2,011.50) less the year’s PCB without it (RM1,284.00).
Rounding and the RM10 rule
- Working figures keep two decimals and drop the rest: 123.4534 becomes 123.45.
- PCB is rounded up to the next 5 sen: 287.02 becomes 287.05.
- PCB under RM10 isn’t deducted, unless it’s under RM10 only because of zakat.
Try any salary in the PCB calculator; it shows each month of the year.