Bonus Tax Calculator

1. Enter your monthly salary

   This sets which FBR slab your income falls into, which decides your marginal rate.

2. Add your bonus

   Type the bonus amount or pick a multiple of your monthly salary (1×, 2×, 3×).

3. See the incremental tax

   We compute tax on salary + bonus, minus tax on salary alone — that difference is the tax on your bonus.

4. See your take-home bonus

   Your bonus minus that incremental tax is what actually reaches you.

There is no separate bonus rate in Pakistani law. A bonus is salary, added to the rest of your salary for the year and taxed under the same slabs.

It feels heavier for two reasons. It sits on top of everything else, so it is taxed entirely at your highest band rather than averaged across the lower ones. And employers often deduct it in the month it is paid, so a single payslip carries a deduction that really relates to the whole year.

Why the month it arrives can matter

Because tax is computed on the annual total, a bonus paid in June and the same bonus paid in July fall into different tax years. Where that shifts it out of a year when your income was unusually high, the tax outcome genuinely differs. Employers rarely offer the choice, but it is worth understanding when they do.

The deduction usually evens out

Employers deduct monthly against an estimate of your annual income. A large bonus can leave you over-deducted for the year, and the correction comes through your return rather than automatically. Salaried people who never file leave that money behind.

Where this stops

This shows the tax on the bonus as an addition to the salary you enter. It assumes the bonus is cash; a bonus paid in shares is taxed differently.

For a bonus share issue, see the bonus shares tax calculator.