How it is calculated
This follows LHDN’s computerised calculation specification for 2026. It estimates annual chargeable income from the monthly salary minus employee EPF (EPF relief is capped at RM4,000 a year), then deducts reliefs: individual RM9,000, spouse RM4,000 (spouse not working), RM2,000 per child under 18, and RM8,000 per child aged 18 or above in diploma-or-higher education.
Tax on that income, minus the RM400 rebate (RM800 when the spouse is not working) where chargeable income is RM35,000 or less, is spread over 12 months.
The monthly result is truncated to 2 decimal places. PCB under RM10 is not deducted; otherwise it is rounded up to the next 5 sen. Monthly zakat paid via the employer is subtracted.
The result is a January-basis estimate for a steady salary.
Worked example
Single, salary RM5,000:
- Employee EPF: RM550
- Estimated annual chargeable income: RM47,000.07
- Monthly PCB: RM110.00
LHDN’s own January example: married, spouse working, 3 children, salary RM5,500, PCB RM110.00.
Why your number may differ
Months with a bonus or commission give a different PCB. TP1 reliefs submitted to your employer reduce it. Reliefs for disabled persons (individual or spouse) are not included in this estimate. If your salary changes during the year, or the month is not January, the figure will differ because payroll uses year-to-date figures.