Pakistan uses a progressive slab system set by the FBR. For each slab, you pay a fixed base tax plus a marginal rate on the amount of annual income above the slab's lower bound. The calculator applies the current FY 2025-26 slabs (Finance Act 2025) automatically — first PKR 600,000 is tax-free, then 1%, 11%, 23%, 30%, and 35% in higher brackets.

EOBI (Employees' Old-Age Benefits Institution) is a federal pension contribution. The standard salaried deduction is PKR 370 per month. It funds retirement benefits for registered employees and is mandatory for most formal-sector workers.

You can mark a portion of your salary as non-taxable using the slider — common cases include medical and conveyance allowances, certain gratuity contributions, and tax-free portions of provident funds. By default the calculator treats 100% of your salary as taxable; lower it if part of your package is exempt.

The Finance Act 2025 significantly reduced marginal rates in lower and middle brackets. The first taxable slab went from 5% to 1%; the next from 15% to 11%; and the 25% bracket dropped to 23%. The top rate (35%) and the entry threshold (PKR 600,000) stayed the same.

Finance Act 2025 introduced a 9% surcharge on income tax (not on income) for individuals whose annual taxable income exceeds PKR 10,000,000 (one crore). The calculator applies it automatically when applicable.

No. Salaried slabs are preferential and only apply if salary makes up more than 75% of your total taxable income. Non-salaried (business) income uses a different, generally less favourable, slab table.