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How FBR Calculates Your Salary Tax (Step by Step)
A worked example showing exactly how monthly salary moves through each tax slab plus surcharge.
FBR uses progressive taxation: each slice of your income is taxed at a different rate, and only the income inside that slice gets that rate. People often think the rate of their top bracket applies to all their income — it does not.
The 4-step formula
- Annualize: monthly salary × 12 = annual taxable income.
- Find your top slab: which row of the slab table covers your income?
- Compute base tax: fixed amount of that slab + (income above the slab's base × slab rate).
- Add surcharge if income > PKR 10M: base tax × 9% (salaried) or 10% (AOP) added on top.
Divide the annual tax by 12 to get the monthly deduction your employer must withhold under Section 149.
Try a worked example
Frequently asked questions
Why does the breakdown show six rows?
Each row is one slab. Even if your income only crosses three slabs, the table shows them all so you can see how the rate changes.
What is "marginal" vs "effective" rate?
Marginal = the rate on your last rupee of income (your top slab's rate). Effective = total tax ÷ total income (almost always lower).