How this is calculated
FBR income tax (Tax Year 2027 slabs)
Your monthly salary is annualized (×12), taxed using FBR's progressive slabs for Tax Year 2027 (1 July 2026 – 30 June 2027), then divided back down to a monthly withholding amount. The first Rs 600,000 a year is tax-free; rates then rise in steps from 1% up to 35% on income above Rs 7,000,000 a year. The high-earner 9% surcharge that used to apply above Rs 10 million a year was abolished for this tax year.
EOBI — why it doesn't scale with your salary
EOBI (Employees' Old-Age Benefits Institution) contributions are calculated on the federal minimum wage (currently Rs 40,700/month), not your actual salary. Your employer pays 5% of that figure and you pay 1% — the same amount whether you earn minimum wage or several times that. This is a common source of confusion: your EOBI deduction won't go up even if your salary does.
Filer vs. non-filer status doesn't change this
Being on FBR's Active Taxpayers List (a "filer") changes the withholding tax you pay on things like property transactions, bank transactions, and vehicle purchases — but it does not change how much tax your employer withholds from your salary. Filers and non-filers are taxed identically on salary income.
Assumptions & limits
Assumes a standard salaried employee with no additional tax credits applied (Zakat, pension contributions, tuition fee credits, and donations can all reduce your actual liability under Sections 60/61/63 of the Income Tax Ordinance — this calculator doesn't model those). EOBI uses the federal minimum wage figure; some provinces notify slightly different amounts. Figures are for guidance only, not tax advice.