How Salary Income Tax Is Calculated in Pakistan (2025–26)
Salaried individuals in Pakistan are taxed on a progressive slab system under the Income Tax Ordinance, 2001. Your annual taxable salary falls into one of six brackets notified by FBR for tax year 2025–26, and each bracket applies a fixed base tax plus a percentage on the amount exceeding the slab's lower limit. This calculator applies those exact slabs so you can see your monthly and yearly liability instantly — and compare two tax years side by side to understand how Finance Act changes affect your take-home pay.
Salary Tax Slabs — Tax Year 2025–26
| Annual Taxable Salary | Tax Rate |
|---|---|
| Up to Rs. 600,000 | 0% |
| 600,001 – 1,200,000 | 1% of amount over 600,000 |
| 1,200,001 – 2,200,000 | Rs. 6,000 + 11% of amount over 1,200,000 |
| 2,200,001 – 3,200,000 | Rs. 116,000 + 23% of amount over 2,200,000 |
| 3,200,001 – 4,100,000 | Rs. 346,000 + 30% of amount over 3,200,000 |
| Above 4,100,000 | Rs. 616,000 + 35% of amount over 4,100,000 |
Worked Example
Suppose your monthly salary is Rs. 200,000, so your annual salary is Rs. 2,400,000. This falls in the fourth slab (2,200,001 – 3,200,000). Your tax = Rs. 116,000 base + 23% of (2,400,000 − 2,200,000) = Rs. 116,000 + Rs. 46,000 = Rs. 162,000 per year, or about Rs. 13,500 per month. High earners above Rs. 10 million may also pay an additional surcharge — the calculator accounts for this automatically.
Frequently Asked Questions
Is my whole salary taxed at one rate?
No. Only the income above each slab's threshold is taxed at that slab's rate, plus the fixed base tax for that bracket. This is why the effective rate is always lower than the headline slab rate.
Does this include allowances and bonuses?
Taxable salary includes basic pay plus most allowances, bonuses, and perquisites. Enter your gross salary before deductions for the most accurate estimate.
Is the result final?
It's an estimate. Your final liability depends on tax credits, withholding already deducted, and any exemptions. Always confirm on the FBR IRIS portal or with a tax professional.