Annual tax — one figure for the year
Annual income tax is computed once, for the whole year, from the resident individual schedule for Year of Assessment (YA) 2026 applied to your chargeable income — annual employment income less EPF relief capped at RM4,000, less individual relief of RM9,000 and any other claimed reliefs — less rebates and zakat. Only the income inside each band is taxed at that band’s rate: the first RM5,000 of chargeable income at 0%, the next RM15,000 at 1%, the next RM15,000 at 3%, and RM35,001 to RM50,000 at 6%, with higher bands above that. On the site’s published profiles, a single resident employee on RM5,000 a month has chargeable income of RM47,000 and annual tax of RM1,320; on RM8,000 a month, chargeable income of RM83,000 and annual tax of RM6,170; and on RM7,000 a month, chargeable income of RM71,000 and annual tax of RM3,890.
Monthly PCB — the annual figure spread out
The simplified version divides the annual tax by 12: RM1,320 ÷ 12 = RM110 a month on the RM5,000 profile, RM6,170 ÷ 12 = RM514.20 a month on the RM8,000 profile, and RM3,890 ÷ 12 = RM324.17 a month on the RM7,000 profile. That is an annualised illustration, not the payslip figure. The real monthly formula is the LHDN computerised formula: it spreads the remaining tax over the remaining months, deducts PCB already paid, applies zakat, and rounds the remainder up to the nearest 5 sen. MTD under RM10 is not deducted in any case. January’s PCB and October’s PCB for the same salary are not necessarily equal.
Worked comparison
Assumptions for every row: single resident, fixed monthly salary, EPF 11%, no TP1 reliefs, no spouse or child reliefs, no zakat, no bonus. Simplified annual illustrations only.
| Monthly salary (RM) | Annual gross (RM) | Chargeable income (RM) | Annual tax (RM) | Monthly PCB, annualised (RM) | Effective rate on chargeable income |
|---|---|---|---|---|---|
| 5,000 | 60,000 | 47,000 | 1,320 | 110.00 | 2.81% |
| 7,000 | 84,000 | 71,000 | 3,890 | 324.17 | 5.48% |
| 8,000 | 96,000 | 83,000 | 6,170 | 514.20 | — |
On the RM5,000 profile, tax on RM47,000 is RM600 (tax up to RM35,000) + 6% × (47,000 − 35,000) = 600 + 720 = RM1,320 a year. On the RM8,000 profile, tax on RM83,000 is RM3,700 (tax up to RM70,000) plus 19% × RM13,000 = RM2,470, giving RM6,170 a year. On the RM7,000 profile, tax on RM71,000 is RM3,890 a year. Use the site’s PCB calculator and LHDN’s official calculator for a month-by-month figure — payslips are authoritative.
Why your payslip differs from annual tax ÷ 12
- Remaining months. The formula spreads the remaining tax over the months left in the year, so a TP1 submitted in October has a larger per-month effect for 3 months than the same claim submitted in January would have over 12 months.
- PCB already paid. Earlier months’ deductions are taken into account, so the figure moves as the year progresses.
- Bonuses. A bonus is additional remuneration: its whole extra tax lands in the bonus month instead of being spread over 12.
- Zakat. Monthly zakat deducted through salary reduces PCB ringgit for ringgit, including in a bonus month.
- Rounding. The remainder is rounded up to the nearest 5 sen, and MTD under RM10 is not deducted.
Bonus months break the pattern
In the site’s published bonus example, a worker on RM6,000 a month has normal PCB of RM207.50 a month. Without a bonus, annual income is RM72,000, chargeable income is RM59,000 and tax is RM2,490 a year. With a RM6,000 bonus, annual income is RM78,000, chargeable income is RM65,000 and tax is RM3,150 a year. The RM660 difference is charged in the bonus month on top of the normal RM207.50 — so that month’s total PCB is RM867.50 — and the next month PCB falls back to normal. The spike is timing, not extra tax: at e-Filing, total tax is computed on total income including the bonus, and any over-deduction is refunded.
FAQ — Monthly PCB vs Annual Income Tax
Q: Is monthly PCB just annual tax divided by 12?
A: Only as a simplified illustration. The real monthly MTD follows the LHDN computerised formula, which spreads remaining tax over remaining months, deducts PCB already paid, applies zakat and rounds up to the nearest 5 sen.
Q: Why did my PCB change mid-year when my salary did not?
A: The monthly formula depends on the month, PCB already paid and remaining months. A TP1 submitted mid-year, a bonus month, or zakat can all move the monthly figure without any change in basic salary.
Q: Which figure appears on my payslip?
A: The monthly MTD for that month, worked out by your employer’s payroll under the computerised formula. Your payslip is authoritative — the annualised ÷ 12 figure is only an illustration.
Q: What happens at the end of the year?
A: At e-Filing, your total tax is computed on your total income for the year. If total PCB exceeds the final tax after all reliefs, the excess comes back as a refund; if it falls short, you pay the difference.
Q: Does a bonus change my annual tax?
A: Yes. A bonus is added to annual income and taxed at your marginal rate. In the published example, a RM6,000 bonus on a RM6,000 salary raises annual tax from RM2,490 to RM3,150 — the RM660 difference lands in the bonus month.
Q: Is MTD under RM10 deducted?
A: No. MTD under RM10 is not deducted in any case, under the rounding rules of the computerised formula.
Sources: PCB tax bracket table 2026 (YA2026 schedule and worked salary examples); tax relief 2026 (RM8,000 worked example); why PCB spikes in bonus month (RM6,000 bonus example); TP1 guide (remaining-months point and rounding rules). This guide is an independent estimate aid, not an official LHDN publication and not tax advice. Figures are estimates for standard cases. Check your figure with LHDN’s official calculator (calcpcbplus.hasil.gov.my) and your payslip.
Primary official source / Sumber rasmi / 官方来源
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