1. What is Pakistan Salary Tax?

The Pakistan Salary Tax is a direct tax levied on individuals' income according to the tax slabs defined by the Federal Board of Revenue (FBR) for the fiscal year 2025-26.

2. How Does the Calculator Work?

The calculator uses the simple tax formula:

Where:

• \( Taxable\ Income \) — Annual income subject to tax (PKR)
• \( Tax\ Rate \) — Applicable tax rate percentage for 2025-26

Explanation: The calculation multiplies your taxable income by the applicable tax rate percentage to determine your annual tax liability.

3. Importance of Tax Calculation

Details: Accurate tax calculation helps in financial planning, ensuring compliance with tax laws, and avoiding underpayment penalties or overpayment of taxes.

4. Using the Calculator

Tips: Enter your annual taxable income in PKR and the applicable tax rate percentage for 2025-26. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are the tax slabs for 2025-26 in Pakistan?
A: The official tax slabs will be announced by FBR, but typically follow progressive rates based on income brackets.

Q2: Are there any tax exemptions?
A: Yes, certain income types and amounts may be exempt. Consult a tax professional for specific cases.

Q3: How often should I calculate my tax liability?
A: Ideally with each paycheck, and definitely before filing annual returns.

Q4: Does this calculator account for tax credits?
A: No, this provides a basic calculation. Actual tax liability may be reduced by eligible credits.

Q5: Where can I find the official tax rates?
A: On the Federal Board of Revenue (FBR) website when they are published for 2025-26.