Understanding Salary Tax

Salary tax, also known as income tax, is deducted from an employee’s salary based on government tax rates. Each country has different tax brackets and exemptions.

How is Salary Tax Calculated?

Most countries have progressive tax rates, meaning higher salaries are taxed at higher rates. Here’s an example:

• United States: 10% to 37% tax brackets.
• India: 5% to 30% tax rates with tax-free income up to ₹2.5 lakh.
• Pakistan: 2.5% to 35% tax rates with exemptions for low-income earners.
• United Kingdom: 20% to 45% tax rates.

How to Use the Calculator?

• Enter your annual salary.
• Select your country.
• Click “Calculate Tax” to see your estimated tax and net salary.

Conclusion

Taxes impact your net income, and knowing your tax deductions helps in better financial planning. Use this calculator to estimate your salary after tax deductions.