If you’re a salaried person in Pakistan, your employer deducts income tax from your salary every month. Understanding how it’s calculated helps you check your payslip and plan your finances.
How salary tax works
- Take your annual taxable salary (monthly taxable salary × 12).
- Find the slab it falls into. Each slab has a fixed amount plus a percentage on income above the slab’s lower limit.
- Calculate the annual tax, then divide by 12 for the monthly deduction.
Slabs and rates are set in the federal budget (Finance Act) and usually change every fiscal year starting 1 July, so always use the slabs for the correct tax year.
Use the calculator
- Open the Income Tax Calculator.
- Enter your monthly or annual taxable salary.
- Check that the tax year is correct.
- See annual tax, monthly tax and take-home salary.
Things that can change your tax
- Some allowances may be fully or partly exempt; check with your employer.
- Bonuses and arrears count in the year they’re paid.
- Certain investments and donations may give tax credits.
- Being on the Active Taxpayers List (ATL) affects withholding rates on many transactions.
Filing your return
Even if tax is already deducted, salaried individuals above the taxable limit generally need to file an annual return on FBR’s IRIS portal. Filing keeps you on the ATL.
Related calculators
For general guidance only and not tax advice. Verify with FBR or a tax professional.
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