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What is a Salary Tax Calculator and How Does It Work?

What is a Salary Tax Calculator and How Does It Work?

The salary tax calculator is a product of Corptax Solutions that helps users to calculate their monthly and yearly income taxes free of cost. It benefits a taxpayer who wants to calculate his income tax for 2023. Corptax is a virtual tax consultancy firm that provides its users with many services such as company registrations, business registration, partnership firm registration, sole proprietorship firm registration, FBR registration, income tax return, income tax registration, sales tax return, sales tax registration, trademark registration, logo registration, import-export license, chamber of commerce and ntn services. We provide full support and manage all needs of our customers.

How We Can Use Salary Tax Calculator?

Using the salary tax calculator is so easy you just need to select your monthly salary such as given below:

For example, if your monthly salary is 70,000 you need to put your monthly salary and just press the button “CALCULATE”. In output salary calculator gives you some results like this:

In the first cell Salary tax calculator shows your monthly income which is 70,000 and in the second cell Salary Calculator shows your monthly income tax which is 1750 for your 70,000 payment at the end of a row in the third cell shows your monthly salary after paying your monthly income tax. The second-row salary tax calculator shows your yearly income tax calculation according to your monthly income. As your monthly payment is 70,000 and monthly tax is 1750 so your yearly income is 840,000 and your monthly income tax is 21,000 after all paying your yearly income tax your yearly income is 819,000.

Income Tax Ratio For 2023

There are different tax ratios for different amounts of income, our tax calculator is updated with mentioned values such as:

  • If your monthly salary does not exceed PKR. 50,000 and yearly salary is up to 600,000 then the ratio of income tax is 0 %. If your yearly income is more than PKR. 600,000 you should pay your taxes.
  •  If your annual income is between PKR. 600,000 to 1200,000 then the tax ratio is 2.5 % of your yearly salary. 
  • If your annual income is in between PKR. 1200,000 to 2400,000 the yearly salary tax is PKR. 15,000 + 12.5 %. 
  • If your annual salary income is between PKR. 2,400,000 to 3,600,00 then your yearly salary tax ratio is PKR, 165,000 + 20 %. 
  • If your yearly salary is  PKR. 3,600,000 to 6,000,000 then the salary tax ratio is PKR. 405,000 + 25 %. 
  • If your yearly salary is PKR. 6,000,000 to 12,000,000 then the salary tax ratio is PKR. 1,005,000 + 32.5 %.  
  • If your annual salary is more than  PKR. 12,000,000 then the annual salary tax ratio is PKRs. 2,955,000 + 35 %. 

You can see these results after using the salary tax calculator product of Corptax Solutions which is based on the tax ratio announced by FBR for 2023.

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