Understanding Your Salary Tax
For salaried individuals, the Federal Board of Revenue (FBR) mandates that employers deduct income tax at the source under Section 149 of the Income Tax Ordinance. The amount deducted depends on which tax bracket your annual salary falls into.
Want to see the exact percentages? Check our detailed guide on the current tax brackets.
View Tax Slabs 2025-26What Counts as Taxable Income?
Your taxable salary isn't just your basic pay. It includes most allowances such as house rent, conveyance, and medical (if it exceeds 10% of basic pay), as well as bonuses and commissions.
Understanding what parts of your compensation package are taxable can help you estimate your take-home pay more accurately.
Read the Taxable Income GuideHave Mixed Income Sources?
If you earn from both a full-time job and a freelance gig or side business, you need to check if your salary is more than 75% of your total income. If your business income is significant, you may fall under the non-salaried category. Use our main calculator for mixed income scenarios.
Use the Full Income Tax Calculator