How Salary Tax Is Calculated
Your employer multiplies your gross monthly salary by 12 to estimate annual income, applies the applicable FBR slab rate, then divides the annual tax by 12 to deduct it monthly under Section 149. This calculator mirrors that same logic using the official 2026-27 slabs.
Ways to Reduce Your Salary Tax
- Pension fund contributions (Section 63) — deductible up to 20% of income
- Equity mutual fund or PSX share investment (Section 62) — tax credit up to PKR 150,000
- Approved life or health insurance premiums
- Donations to FBR-approved charitable organizations
This is an estimate for planning purposes. Your exact deduction depends on your employer's payroll calculation and any exemptions you've claimed — WhatsApp us to review your payslip.