Calculate your income tax as a salaried person in Pakistan using the FBR slabs for Tax Year 2026 (Finance Act 2025). Enter your annual salary and see your yearly and monthly tax.
Based on the FBR salaried slabs for Tax Year 2026 (Finance Act 2025, effective 1 July 2025). Rates may change in a future Finance Act — always confirm the current slabs on the FBR website.
1. Enter your total annual salary before tax. 2. Click Calculate Income Tax. 3. Read your annual and monthly tax, your net salary and your effective tax rate.
Every salaried person in Pakistan pays income tax on their salary, but the amount depends on the tax slabs announced each year in the Finance Act. The tax is progressive: the first 600,000 rupees a year is tax-free, and higher portions of income are taxed at higher rates. This free income tax calculator uses the FBR salaried slabs for Tax Year 2026 (Finance Act 2025, effective 1 July 2025) to show your annual tax, your monthly tax deduction, your take-home salary and your effective tax rate. It takes seconds, so you can check your salary slip or plan a pay rise with confidence.
Understanding your tax slab matters. If your salary rises from 2,000,000 to 2,400,000, your whole salary is not taxed at the higher rate — only the part above 2,200,000 is taxed at 23 percent. This is how a progressive tax works, and it is why a pay rise always leaves you with more money in hand, even if it pushes you into a higher slab. The calculator shows your effective rate, which is the real percentage of your salary that goes to tax, and it is always lower than your top slab rate.
Suppose your annual salary is 2,400,000. The first 600,000 is tax-free. The next 600,000 (up to 1,200,000) is taxed at 1 percent, which is 6,000. The next 1,000,000 (up to 2,200,000) is taxed at 11 percent, which is 110,000. The remaining 200,000 (up to 2,400,000) is taxed at 23 percent, which is 46,000. Your total annual tax is 6,000 plus 110,000 plus 46,000, which is 162,000. Your monthly tax is 13,500, your net annual salary is 2,238,000 and your effective tax rate is 6.75 percent. Try it in the calculator above and check that your result matches.
Take a smaller salary: 1,000,000 a year. The first 600,000 is tax-free, so only 400,000 is taxed. That 400,000 falls in the 1 percent slab, so the tax is 400,000 times 1 percent, which is 4,000 a year, or about 333 a month. Your net annual salary is 996,000 and your effective tax rate is only 0.4 percent. Under the old slabs (Tax Year 2025) this salary would have been taxed at 5 percent on the same 400,000, which was 20,000 — five times more. The Finance Act 2025 gave real relief to lower-income salaried workers.
The slabs for salaried individuals under Section 149 are: up to 600,000 — no tax; 600,001 to 1,200,000 — 1 percent of the amount above 600,000; 1,200,001 to 2,200,000 — 6,000 plus 11 percent of the amount above 1,200,000; 2,200,001 to 3,200,000 — 116,000 plus 23 percent of the amount above 2,200,000; 3,200,001 to 4,100,000 — 346,000 plus 30 percent of the amount above 3,200,000; above 4,100,000 — 616,000 plus 35 percent of the amount above 4,100,000. A surcharge has applied in some years for very high incomes above 10,000,000 — check the current Finance Act for whether it applies now. These slabs apply when salary is more than 75 percent of your taxable income. Rates may change in a future Finance Act, so always confirm the current slabs before filing.
Enter your gross annual salary. That is your salary before tax, including basic pay and taxable allowances, not your take-home pay. Remember the tax is progressive. Only the part of your income inside a slab is taxed at that slab's rate, so a pay rise never makes you poorer. Check your monthly deduction. Divide the annual tax by 12 and compare it with the tax on your salary slip. Claim your tax credits. Investments, donations and other credits can reduce your tax — ask a tax adviser. File your return every year. Filing keeps you on the Active Taxpayers List, which gives lower withholding rates on banking, cars and property.
Entering your monthly salary as annual. The calculator needs your annual salary; a monthly salary of 200,000 is 2,400,000 a year. Thinking the top rate applies to all your income. Only the income inside each slab is taxed at that rate, so your effective rate is always lower. Using last year's slabs. Slabs change almost every year, so use the current Tax Year 2026 slabs shown here. Forgetting taxable allowances. Some allowances are taxable and must be included in your salary for tax purposes. Ignoring tax credits. Approved investments and donations can reduce your tax, so keep their receipts.
Pro Tip: Your effective tax rate — tax divided by salary — is the number that matters for your budget. For a 2,400,000 salary it is only 6.75 percent, even though your top slab rate is 23 percent.
Note: These are the FBR salaried slabs for Tax Year 2026 (Finance Act 2025). Rates may change in a future Finance Act — always confirm the current slabs on the FBR website before filing your return.
How much income tax do I pay on my salary in Pakistan? It depends on your annual salary and the FBR slabs. The first 600,000 is tax-free; above that, rates rise from 1 percent to 35 percent on the higher portions. Enter your salary in the calculator above for your exact amount.
What is the tax-free limit for salaried persons in Pakistan? For Tax Year 2026, annual income up to 600,000 rupees is fully tax-free for salaried individuals.
What is the difference between the marginal rate and the effective rate? The marginal rate is the rate on the top part of your income — for example 23 percent. The effective rate is your total tax divided by your total salary, which is always lower — for example 6.75 percent on a 2,400,000 salary.
Do I pay tax on my whole salary at the highest rate? No. Pakistan uses a progressive system: each portion of your income is taxed only at its own slab's rate. A pay rise always increases your take-home pay.
What is the Active Taxpayers List (ATL)? The ATL is FBR's list of people who file their tax returns. Being on it gives you lower withholding tax rates on bank transactions, vehicles, property and more.
Does this calculator include the surcharge? No. A 9 percent surcharge has applied in some years for incomes above 10,000,000, but the rules change, so it is not included. Check the current Finance Act if your income is above 10 million.
Are allowances taxed? Many allowances, such as house rent and conveyance, are part of taxable salary. Some allowances are exempt up to a limit. Check your salary slip or ask your employer's tax officer.
Is this calculator the same as my FBR tax return? No. It is an estimate for salaried income only. Your real return may include other income, deductions and credits. For filing, use FBR IRIS or a tax adviser.