Pakistan Salary Tax Calculator

Progressively, in slabs. Your annual taxable income is divided into bands and each band is taxed at its own rate, so a raise that moves you into a higher slab is taxed at the higher rate only on the part above the threshold. This is why your effective rate, the tax as a share of your whole salary, is always lower than the rate on your top slab. The calculator above shows both, and the working underneath shows what each slab contributed.

Usually because your employer is withholding against a projection of your full year under section 149, spread across twelve months, and adjusting it as the year progresses. Bonuses, a mid-year raise, a change of employer or any relief you have declared to payroll all move that projection. This calculator works out the tax on a full year at the salary you entered, which is the right figure for the year as a whole and will not always match one month of a slip.

It is the state old-age pension contribution, and the employee share is calculated on the government-notified minimum wage rather than on your actual salary. That is why it is a flat monthly figure at every pay level rather than a percentage of what you earn. Your employer pays a separate and larger share of its own, which cannot lawfully be deducted from your pay. It only applies where your employer is registered with EOBI, which is why the calculator asks instead of assuming.

Your own contribution does not. It is deducted from salary that has already been taxed, which is why the calculator shows it as reducing your take-home without changing the tax figure above it. What it is not is a tax: it goes into your own fund and it remains your money. Your employer's contribution to a recognised fund, and the interest the fund earns, are treated separately and are exempt within the limits set in the Sixth Schedule.

Four things, and they work in two different ways. Zakat paid under the Zakat and Ushr Ordinance and tuition fees under section 60D are deductible allowances: they come off your income before the slabs are applied, so they are worth your top rate. Donations to FBR-approved organisations under section 61 and contributions to a SECP-approved Voluntary Pension Scheme under section 63 are tax credits: they come off the tax itself, calculated at your average rate rather than your marginal one. All four are in the calculator, each with its statutory cap applied.

Not on salary. The surcharge under section 4AB applied to individuals with taxable income above ten million rupees, and it no longer applies to anyone whose income is chargeable under the head "Salary". Several calculators and articles still apply it. If a tool is quoting you a top marginal figure above the highest slab rate, that is what it is doing.

No. The deductible allowance for profit on debt under section 60C was omitted by the Finance Act 2022 and no longer exists. It is still described as available on a number of sites, which is worth knowing before you plan around it.

Yes, if your income is above the taxable threshold. Withholding by your employer is payment of tax, not filing, and the two are separate obligations. Filing is what puts you on the Active Taxpayer List, and non-filers pay materially higher withholding rates on banking transactions, property, vehicles and dividends. For most salaried people that difference over a year exceeds what filing costs.

30 September following the end of the tax year, which runs from 1 July to 30 June. FBR does sometimes extend it, and every year a number of people plan around an extension that then arrives shorter than expected or not at all. Working to the original date is the safer assumption.

The arithmetic is exact for the case it models: tax on salary income for a full year at the current rates, with the allowances and credits you enter. The rates are taken from the Income Tax Ordinance itself and are reconciled against the First Schedule automatically, so the slabs cannot silently drift out of date without the site failing to build. What it cannot know is anything you have not told it, and the section above lists what that includes. Treat it as a well-founded estimate rather than a computation of your liability.