Calculation Methodology & Legislation
How Your Calculation Works (Pakistan • 2026-27)
This calculation tool operates strictly in accordance with statutory tax brackets and financial schedules published by Federal Board of Revenue (FBR) for the 2026-27 fiscal tax year (Pakistan Finance Act 2025/2026).
Calculates sales tax on goods (Federal FBR standard rate of 18%) and provincial services (PRA 16%, SRB 15%, KPRA 15%, BRA 15%) for add-tax and remove-tax calculations.
Core Mathematical FormulaStatutory 2026-27
Net Salary = Gross Salary − Progressive Slabs Tax (5%–35%) + Applicable High-Income SurchargesStatutory Allowances & Deductions
Basic Personal Allowance / Exemption
FBR provides a 0% tax threshold on annual salary income up to PKR 600,000 (PKR 50,000 per month).
Reliefs & Allowable Deductions
Medical allowance exemptions (up to 10% of basic salary) and approved charitable contributions reduce taxable salary under FBR rules.
Statutory Authority Verified (2026-27)Audited against published schedules from Federal Board of Revenue (FBR).