What is the difference between PCB and actual tax?

PCB (monthly tax deduction) is an estimate your employer deducts every month. Your actual tax is worked out when you file on e-Filing. If PCB was higher, you get a refund. If it was lower, you pay the balance.

Can I claim zakat to reduce my tax?

Yes! Zakat paid to a recognised institution reduces your tax. Zakat reduces tax ringgit for ringgit, not just as an ordinary relief.

What happens if I miss the e-Filing deadline?

If you miss the deadline you can face a penalty of up to 35% of the tax, a fine of up to RM20,000, or imprisonment of up to 6 months. Make sure you file before the deadline!

Do freelancers or side income earners pay tax?

Yes, all income must be declared, including freelance, side income and rental income. If your total annual income exceeds the threshold, you pay tax.

The complete guide to Malaysian income tax 2026.

Everything you need to know about income tax in Malaysia, from the basics to advanced. For employees, freelancers and business owners.

Calculate your tax e-Filing guide

Who has to pay tax?

You pay tax if your annual income exceeds RM37,333 (after deducting 11% EPF).

Should you file? Take the quiz

Annual threshold

RM37,333

After 11% EPF

Gross salary

≈ RM3,500

A month · after EPF ≈ RM3,115/month

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The most used tools and guides.

Tax CalculatorCalculate your income taxCalculate Tax ReliefComplete relief listView e-Filing DeadlineDon't miss the deadlineCheck How to e-FileStep-by-step guideRead

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The tax process

5 simple steps.

01
Add Up Your Annual Income
Gather every income source - salary, bonus, commission, rental income, etc.
02
Identify Your Reliefs
Find the reliefs you qualify for - insurance, education, EPF, zakat, etc.
03
Work Out Chargeable Income
Deduct reliefs from gross income to get your chargeable income.
04
File on e-Filing
Log in to LHDN MyTax and complete your tax form following the guide.
05
Pay or Get a Refund
Pay any tax due, or receive a refund if your PCB was more than your tax.

Tax rates, YA 2026

Malaysia taxes income progressively.

Calculate your tax

Tax rates, YA 2026
Chargeable income	Rate	Tax on lower amounts
RM 0 – RM 5,000	0%	RM 0
RM 5,001 – RM 20,000	1%	RM 0
RM 20,001 – RM 35,000	3%	RM 150
RM 35,001 – RM 50,000	6%	RM 600
RM 50,001 – RM 70,000	11%	RM 1,500
RM 70,001 – RM 100,000	19%	RM 3,700
RM 100,001 – RM 400,000	25%	RM 9,400
RM 400,001 – RM 600,000	26%	RM 84,400
RM 600,001 – RM 2,000,000	28%	RM 136,400
RM 2,000,001 and above	30%	RM 528,400