A salary tax companion for Pakistan
Type your salary once. See this year's tax, how it compares to last year, and how much you could realistically save — no sales calls, no lead forms.
How this is worked out: Basic salary, commission, bonus, leave encashment, and other allowances are all fully taxable, so they're all added up to your gross yearly salary first — mark commission, bonus, and other allowance as Monthly (paid every month, so multiplied by 12) or One-time (a single yearly amount, used as-is). Leave encashment is always a one-time yearly amount. If you receive a medical allowance and don't separately get free hospitalization from your employer, Pakistani tax law exempts up to 10% of salary from tax — tick the box above to apply that. This is a simplified estimate (the legal 10% cap is technically based on basic salary specifically); confirm the exact figure with a tax advisor if your pay structure is more complex.
Same salary, different years — see how the slabs actually moved your tax bill.
Two common ways salaried individuals reduce their tax bill. Figures are illustrative estimates, not filing-ready numbers — confirm exact eligibility and caps with a tax advisor.
Contributions to an FBR-approved Voluntary Pension Scheme earn a tax credit, capped at the lesser of your actual contribution or 20% of your taxable income.
Donations to a qualifying organization earn a tax credit under Section 61 — capped at the lesser of your actual donation or 30% of your taxable income (15% if the recipient is an associate).
Donating doesn't cut your taxable income directly. Section 61 gives you a tax credit worked out as:
Tax Credit = (Tax before credits ÷ Taxable income) × Qualifying donation
That ratio is exactly what the calculator above uses as your average tax rate. The "qualifying donation" itself is capped at the lesser of your actual donation or 30% of your taxable income — only 15% if you're donating to an associate. So donating Rs. 2,000,000 doesn't save you Rs. 2,000,000 in tax; it saves you your average tax rate multiplied by the eligible amount.
Not every recipient qualifies. The donation only counts under Section 61(1) if it goes to:
An ordinary charity, mosque, or individual in need — however worthy — doesn't automatically qualify. Check the recipient's NTN, legal registration, and Section 100C/Thirteenth Schedule status before assuming the donation is creditable.
How you pay matters. Under Section 61(4), cash donations don't qualify. The payment needs to go through a crossed cheque or a traceable bank/online transfer. Keep the donation receipt, the recipient's NTN and registration details, your bank transaction reference, and (for property donations) fair-market-value documentation — FBR can ask for evidence supporting a claimed credit.
This summarizes a real but detailed provision of the Income Tax Ordinance, 2001 for individual taxpayers. It isn't tax advice — confirm the recipient's exact eligibility, current limits, and documentation requirements with a tax advisor before filing.
This is a calculator, not a lead form. Nobody calls you afterward.
Every slab and formula behind the numbers is plain to see — nothing is a black box.
Updated as soon as a new Finance Act changes the slabs, back to 2014–2015.