Methodology & sources
How we calculate — and where the numbers come from
Most tax calculators hide their sources, which is why different websites give different answers for the same salary. We publish ours in full.
Sources
- Primary source: the FBR Withholding Income Tax Rate Card for FY2026-27 (and FY2025-26 for the comparison year), which reproduces the rates in the First Schedule, Part I of the Income Tax Ordinance 2001 as amended by the Finance Act 2026.
- Cross-checks: before publishing, the slab tables were compared against several independent published reproductions of the FBR card and contemporary reporting of the Finance Act 2026. All agreed on the figures used here.
- Last checked: 4 November 2026. The tables are re-checked whenever a Finance Act or FBR notification changes them.
The formula
Step 1 — Annual incomeAnnual income = monthly salary × months worked + annual bonus
Step 2 — Slab taxTax = the sum over each slab of (income inside the slab × the slab rate)
Step 3 — Surcharge and creditsPayable tax = slab tax + Section 4AB surcharge (where it applies) − tax credits, never below zero
Step 4 — Monthly figuresMonthly tax withheld (estimate) = payable tax ÷ months worked · Take-home = salary − monthly tax − EOBI entered
What the model does and does not do
- Salaried and non-salaried tables are never mixed. The salary calculator uses only the salaried slabs; the non-salaried calculator uses only the non-salaried slabs.
- Surcharge: none for salaried income in 2026-27; 9% of the tax for salaried income above Rs 1,00,00,000 in 2025-26; 10% of the tax for non-salaried income above Rs 1,00,00,000 in both years.
- EOBI is never treated as a tax deduction; it only reduces take-home pay, and only if you enter it.
- Not modelled: other income, exempt allowances, deductible allowances (such as zakat paid), prior-year balances, and employer-specific payroll practices. Monthly withholding is the annual tax spread evenly, labelled an estimate of the Section 149 average-rate method.
- Rounding: figures are rounded to the nearest rupee; statutory rounding of tax to the nearest Rs 10 is not applied.
- Verification: the calculation engine is covered by an automated test suite that checks every slab boundary and a set of hand-worked examples (for example Rs 1,00,000/month → Rs 500 tax/month in 2026-27). The same engine generates every figure on every page of this site, so pages cannot disagree with the calculators.
Correction policy
If any figure on this site is wrong, we want to know. Send the details via the contact page. Confirmed errors are corrected, the affected pages regenerated from the fixed engine, and the correction noted here. Tax law changes every year with the Finance Act; after each budget the tables are re-verified against the new FBR rate card before the new year is published.
Disclaimer
This website provides estimates for general information only. It is not tax advice and is not affiliated with the FBR. Your actual tax depends on your full circumstances; confirm important decisions against the FBR's official publications or a qualified tax adviser.