6 October 2026
What Is PCB (MTD) in Malaysia? Meaning & How It Works
PCB (Potongan Cukai Bulanan) is the monthly income tax your employer deducts from your salary. See what it means, how it works and what you pay at each salary.
Free tool: PCB Calculator (MTD) →
PCB stands for Potongan Cukai Bulanan, known in English as MTD, the Monthly Tax Deduction. It is the income tax your employer deducts from your salary each month and pays to LHDN on your behalf.
How PCB works
PCB is not an extra tax. It is an instalment of your yearly income tax, spread over the year. When you file your return, your final tax is compared with the PCB already paid: if you overpaid you get a refund, and if you underpaid you pay the balance.
What affects your PCB
Your PCB depends on your income, marital status, number of children, EPF contributions and the reliefs you claim. A bonus month usually has a larger PCB because the extra income is taxed in that month.
PCB at different salaries
| Monthly salary | PCB per month |
|---|---|
| RM 2,000 | RM 0.00 |
| RM 3,000 | RM 0.00 |
| RM 3,500 | RM 0.93 |
| RM 4,000 | RM 15.83 |
| RM 5,000 | RM 108.25 |
| RM 6,000 | RM 204.29 |
| RM 8,000 | RM 508.63 |
| RM 10,000 | RM 921.88 |
The table shows the monthly PCB for a single Malaysian employee with no children and only the standard reliefs.
Why PCB can be RM0
At lower incomes, your reliefs and the RM400 tax rebate bring your tax down to zero, so no PCB is deducted. Married employees and those with children start paying PCB at a higher salary.
Calculate your own PCB
Use the PCB calculator for your exact monthly deduction, or the income tax calculator for your yearly tax.
Frequently asked questions
What is PCB in Malaysia?
PCB (Potongan Cukai Bulanan), also called MTD (Monthly Tax Deduction), is the income tax your employer deducts from your monthly salary and pays to LHDN for you.
Is PCB the same as income tax?
PCB is an instalment of your yearly income tax. Your final tax is worked out when you file your return, and any PCB paid above that amount is refunded.
Can I get my PCB back?
If the PCB deducted during the year is more than your final tax, the difference is refunded after you file your income tax return.