This tax calculator 2025-26 helps you find your exact Pakistan income tax liability for tax year 2025-26 and 2026-27. Enter your monthly salary or annual income in the tax calculator 2025-26, select salaried or non-salaried, and get an instant slab-wise breakdown based on the Finance Act.
Pakistan Income Tax Calculator
How to Use This Tax Calculator
- Choose monthly salary or annual income — toggle between the two modes depending on what figure you have at hand.
- Enter your gross income — type your total salary or business income before any deductions.
- Select the tax year — pick 2025-26 or 2026-27 to use the correct slab rates from the respective Finance Act.
- Choose salaried or non-salaried — salaried persons (employed under a contract) have lower tax rates than non-salaried (business/self-employed) persons.
- Click “Calculate Tax” — the calculator shows your annual tax, monthly tax, effective tax rate, and a slab-wise breakdown.
Income Tax Slabs 2025-26 for Salaried Persons
These slabs apply to salaried individuals under the Finance Act 2024 for Tax Year 2025-26 (July 2025 – June 2026).
| Annual Income (PKR) | Tax Rate |
|---|---|
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 1% of amount exceeding 600,000 |
| 1,200,001 – 2,200,000 | Rs. 6,000 + 11% of amount exceeding 1,200,000 |
| 2,200,001 – 3,200,000 | Rs. 116,000 + 23% of amount exceeding 2,200,000 |
| 3,200,001 – 4,100,000 | Rs. 346,000 + 30% of amount exceeding 3,200,000 |
| Above 4,100,000 | Rs. 616,000 + 35% of amount exceeding 4,100,000 |
Anyone earning PKR 50,000/month or less (PKR 600,000/year) pays zero income tax. The top marginal rate of 35% kicks in once annual income crosses PKR 4.1 million.
Income Tax Slabs 2025-26 for Non-Salaried Persons
Non-salaried persons — business owners, self-employed professionals, and partnership income — are taxed at higher rates under a separate slab table.
| Annual Income (PKR) | Tax Rate |
|---|---|
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 15% of amount exceeding 600,000 |
| 1,200,001 – 1,600,000 | Rs. 90,000 + 20% of amount exceeding 1,200,000 |
| 1,600,001 – 3,200,000 | Rs. 170,000 + 30% of amount exceeding 1,600,000 |
| 3,200,001 – 5,600,000 | Rs. 650,000 + 40% of amount exceeding 3,200,000 |
| Above 5,600,000 | Rs. 1,610,000 + 45% of amount exceeding 5,600,000 |
The key difference: salaried persons pay just 1% on the first taxable bracket (600K–1.2M), while non-salaried persons pay 15% on the same bracket. This gap exists because employers already withhold tax from salaried income under Section 149.
Income Tax Slabs 2026-27 (Updated)
The tax calculator 2025-26 also covers 2026-27 tax year slabs below.
The Finance Act 2025 introduced revised slabs for Tax Year 2026-27 (July 2026 – June 2027). The main change is the addition of two new brackets above PKR 4.1 million for salaried persons.
| Annual Income (PKR) | Tax Rate (Salaried) |
|---|---|
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 1% of amount exceeding 600,000 |
| 1,200,001 – 2,200,000 | Rs. 6,000 + 11% of amount exceeding 1,200,000 |
| 2,200,001 – 3,200,000 | Rs. 116,000 + 20% of amount exceeding 2,200,000 |
| 3,200,001 – 4,100,000 | Rs. 316,000 + 25% of amount exceeding 3,200,000 |
| 4,100,001 – 5,600,000 | Rs. 541,000 + 29% of amount exceeding 4,100,000 |
| 5,600,001 – 7,000,000 | Rs. 976,000 + 32% of amount exceeding 5,600,000 |
| Above 7,000,000 | Rs. 1,424,000 + 35% of amount exceeding 7,000,000 |
The 2026-27 slabs are more granular above PKR 4.1 million. Salaried persons earning between PKR 4.1M and 5.6M now pay 29% instead of the flat 35% that applied in 2025-26 — a meaningful reduction for upper-middle earners.
How Income Tax Is Calculated in Pakistan
Pakistan uses a progressive tax system. The tax calculator 2025-26 applies these rates automatically. Your income is not taxed at a single flat rate. Instead, it is divided across multiple slabs, and each slab is taxed at its own rate.
Here is how the calculation works step by step:
- Determine your taxable income — start with gross salary, subtract any exempt allowances (medical, pension contributions) to arrive at taxable income.
- Identify which slab your income falls into — find the highest bracket that your income crosses.
- Apply the formula — take the fixed amount for that bracket, then add the percentage rate applied to the amount exceeding the bracket’s lower limit.
- Check for surcharge — if taxable income exceeds PKR 10 million, add a 10% surcharge on the total tax.
Formula: Tax = Fixed Amount + (Taxable Income − Slab Lower Limit) × Rate
Filer vs Non-Filer: Why It Matters
Results from the tax calculator 2025-26 apply to filers only. Non-filers face higher withholding rates.
The income tax slabs above apply equally to filers and non-filers. However, being a non-filer carries significant financial penalties through higher withholding taxes on everyday transactions:
- Bank withdrawals above PKR 50,000 — filers pay 0.6% withholding tax, non-filers pay 1.2%
- Vehicle registration — non-filers pay double the withholding tax on vehicle purchase/registration
- Property transactions — non-filers face higher advance tax rates on buying and selling property
- Cash withdrawals, prize bonds, dividends — all carry higher rates for non-filers
- Restrictions — non-filers cannot purchase property above PKR 5 million or vehicles above 800cc
Using the tax calculator 2025-26 and filing your tax return is free on FBR’s IRIS portal. Even if your income is below the taxable limit, filing as a return filer saves you money on withholding taxes throughout the year.
Tax Calculation Example
Suppose your monthly salary is PKR 150,000 (annual: PKR 1,800,000) for tax year 2025-26 as a salaried person.
| Slab | Taxable Amount | Tax |
|---|---|---|
| 0 – 600,000 | 600,000 | Rs. 0 |
| 600,001 – 1,200,000 | 600,000 | Rs. 6,000 (1%) |
| 1,200,001 – 1,800,000 | 600,000 | Rs. 66,000 (11%) |
| Total | 1,800,000 | Rs. 72,000 |
Monthly tax deduction: PKR 72,000 ÷ 12 = PKR 6,000/month. Effective tax rate: 4.0%.
Frequently Asked Questions
What is the income tax exemption limit in Pakistan for 2025-26?
Annual income up to PKR 600,000 is fully exempt from income tax for both salaried and non-salaried persons. If your monthly salary is PKR 50,000 or below, you owe zero income tax.
How is salary tax calculated in Pakistan?
Pakistan uses a progressive slab system. Your income is split across brackets — each bracket is taxed at its own rate. The total tax equals the fixed amount for your slab plus a percentage of income exceeding the slab’s lower limit.
What is the difference between salaried and non-salaried tax slabs?
Salaried persons get lower tax rates because employers already withhold tax under Section 149. Non-salaried (business) persons face higher rates — 15% on the first taxable bracket vs 1% for salaried individuals in 2025-26.
Is there a surcharge on income tax in Pakistan?
Yes. A 10% surcharge applies when taxable income exceeds PKR 10 million annually. This surcharge is calculated on top of the total income tax and applies to both salaried and non-salaried taxpayers.
What changed in income tax slabs for 2026-27?
The 2026-27 slabs added two new brackets above PKR 4.1 million for salaried persons: PKR 4.1–5.6M at 29% and PKR 5.6–7M at 32%. The top rate of 35% now applies only above PKR 7 million, compared to above PKR 4.1 million in 2025-26. Lower brackets remain unchanged.
Do freelancers pay income tax in Pakistan?
Freelancers earning from IT and IT-enabled services registered with PSEB can opt for a reduced final tax rate of 0.25% on gross revenue. Other freelancers are taxed under the non-salaried slabs based on their net taxable income after deducting business expenses.
Disclaimer: This calculator provides estimates based on published Finance Act slab rates. Actual tax liability may differ based on exemptions, allowances, and other deductions. Consult a qualified tax advisor for personalized guidance. Data sourced from FBR official notifications.
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