What this table is — and what it is not
This is the resident individual income-tax schedule for Year of Assessment (YA) 2026, which is the schedule behind PCB (Potongan Cukai Bulanan / Monthly Tax Deduction). PCB is income tax deducted monthly by your employer and remitted to LHDN; the annual tax computed from this table, less rebates and zakat, is spread across the year by the LHDN computerised formula.
This table applies to chargeable income, not to gross salary. Chargeable income = annual employment income − EPF relief (capped at RM4,000) − other claimed reliefs (including TP1 reliefs) − other allowable deductions. Applying these rates directly to gross salary overstates tax.
Non-residents are different: a flat 30% with no personal reliefs. Do not use this table for a non-resident.
Budget 2027 proposals are NOT in this table. Proposals tabled in October 2026 for YA2027 (for example, a higher individual relief and changed middle bands) are proposals for YA2027, not law for YA2026, and are deliberately excluded here. Add a separate YA2027 note only once the proposals become law.
Resident individual tax schedule — YA2026
| Chargeable income (RM) | Rate on this band | Tax on this band (RM) | Cumulative tax at top of band (RM) |
|---|---|---|---|
| First 5,000 | 0% | 0 | 0 |
| 5,001 – 20,000 | 1% | 150 | 150 |
| 20,001 – 35,000 | 3% | 450 | 600 |
| 35,001 – 50,000 | 6% | 900 | 1,500 |
| 50,001 – 70,000 | 11% | 2,200 | 3,700 |
| 70,001 – 100,000 | 19% | 5,700 | 9,400 |
| 100,001 – 400,000 | 25% | 75,000 | 84,400 |
| 400,001 – 600,000 | 26% | 52,000 | 136,400 |
| 600,001 – 2,000,000 | 28% | 392,000 | 528,400 |
| Above 2,000,000 | 30% | No upper limit | 528,400 + 30% of the excess over 2,000,000 |
How to read it (the point most readers miss): only the income inside each band is taxed at that band’s rate. A person with RM47,000 chargeable income does not pay 6% on all RM47,000. They pay: RM0 (first 5,000) + RM150 (next 15,000 at 1%) + RM450 (next 15,000 at 3%) + RM720 (RM12,000 of the 6% band) = RM1,320. Their marginal rate is 6% (the rate on the next ringgit) but their effective rate is 1,320 ÷ 47,000 = 2.81%. Quoting only the marginal rate as “your tax rate” is misleading.
Rebate: an individual rebate of RM400 applies when chargeable income does not exceed RM35,000. A spouse in the corresponding case, with chargeable income not exceeding RM35,000, may also qualify for RM400. The rebate reduces the tax computed above, ringgit for ringgit; it does not reduce chargeable income, and it cannot reduce tax below zero.
Worked salary examples (simplified annual illustrations)
These are simplified annual illustrations: annual gross − EPF relief (capped RM4,000) − RM9,000 individual relief = chargeable income, then the table above, then ÷ 12. They do not reproduce the month-by-month computerised formula (remaining months, PCB already paid, spouse/child reliefs, TP1 reliefs beyond the stated assumption, bonuses, or zakat). Use the site’s PCB calculator and LHDN’s official calculator for a personal figure. Payslips are authoritative.
Assumptions for every row: single resident, fixed monthly salary, EPF 11%, no TP1 reliefs, no spouse/child reliefs, no zakat, no bonus.
| Monthly salary (RM) | Annual gross (RM) | Chargeable income (RM) | Annual tax (RM) | Monthly PCB, annualised (RM) | Effective rate on chargeable income |
|---|---|---|---|---|---|
| 3,000 | 36,000 | 23,000 | 240 computed, less RM400 rebate = 0* | 0* | 0%* |
| 5,000 | 60,000 | 47,000 | 1,320 | 110.00 | 2.81% |
| 7,000 | 84,000 | 71,000 | 3,890 | 324.17 | 5.48% |
| 10,000 | 120,000 | 107,000 | 11,150 | 929.17 | 10.42% |
| 15,000 | 180,000 | 167,000 | 26,150 | 2,179.17 | 15.66% |
* RM3,000 row: the RM400 rebate exceeds the RM240 computed tax, so annual tax is nil on this simplified basis (a rebate cannot take tax below zero). In the real monthly formula, MTD under RM10 is not deducted in any case. The conclusion — no PCB on this profile — is consistent with published examples (a single employee on RM3,000/month with usual EPF typically pays no PCB).
What changes these figures: adding a spouse with no income (−RM4,000 relief) or children (−RM2,000 each) lowers chargeable income and can drop a row into a lower band; adding a TP1 relief does the same; adding a bonus raises annual income and its PCB is computed as additional remuneration, not at the monthly rate.
Common mistakes with the tax table
- Applying the top rate to the whole income. Only the slice inside each band gets that rate (see “How to read it”).
- Applying the table to gross salary. EPF relief and personal reliefs come off first — gross RM60,000 is chargeable RM47,000 in the example, not RM60,000.
- Using an outdated table. Some competing sites still show pre-2023 bands (8% / 13% / 21% / 24% in the middle bands). Those are not YA2026 rates. The YA2026 middle bands are 6% / 11% / 19% / 25%.
- Using Budget 2027 proposals for 2026. YA2027 proposals, if enacted, apply from YA2027 — not YA2026.
- Forgetting the RM400 rebate. Below RM35,000 chargeable income it can wipe out the computed tax entirely.
- Treating the annualised ÷12 figure as the payslip figure. The computerised monthly formula depends on the month, PCB already paid, and remaining months — January’s PCB and October’s PCB for the same salary are not necessarily equal.
- Using the resident table for a non-resident. Non-residents: flat 30%, no reliefs.
FAQ — PCB tax table 2026
Q: What is my tax rate if I earn RM7,000/month?
A: There is no single rate. On the simplified profile above, chargeable income is RM71,000, marginal rate 19%, annual tax RM3,890, effective rate 5.48%. Your own figure depends on reliefs, spouse/children, TP1 claims, and bonuses.
Q: Is the first RM5,000 really tax-free for everyone?
A: For resident individuals, the first RM5,000 of chargeable income is taxed at 0%. Non-residents do not get this — flat 30%.
Q: Has the tax table changed for 2026?
A: Published 2026 guidance confirms the resident schedule is unchanged from YA2025 (and from YA2023 apart from the YA2023 middle-band changes). Budget 2027 proposals would change YA2027, not YA2026.
Q: Why does my payslip PCB differ from annual tax ÷ 12?
A: Because the computerised formula spreads remaining tax over remaining months, deducts PCB already paid, applies zakat, and rounds up to the nearest 5 sen. The ÷12 figure is an annualised illustration only.
Q: Where do I check my exact PCB?
A: LHDN’s official calculator (calcpcbplus.hasil.gov.my) and your payslip. This table and the site’s calculator are estimates.
Sources: PwC Malaysia, Personal income tax (YA2026 column); LHDN/HASiL TP1 (1/2026) for the RM4,000 EPF relief cap and RM9,000 individual relief used in the examples; Income Tax Act 1967, Schedule 1 (resident rates). This page is an independent estimate aid, not an official LHDN publication and not tax advice. It covers standard resident cases only; bonuses, commissions, benefits in kind, business income, and non-resident cases are outside its examples. Verify personal figures with LHDN’s official calculator and your payslip.