Tax year 2026 · Finance Act 2025
Income Tax Calculator Pakistan 2025-26
The short answer
For tax year 2026, salaried income up to Rs 600,000 a year is tax-free. From Rs 600,001 the rate starts at 1% and rises through progressive slabs to 35% above Rs 4.1 million. Enter your annual salary below to see your estimated annual and monthly tax under the Finance Act 2025 slabs.
Free tool
Salaried income tax estimator
Enter your annual taxable salary to see the estimated federal income tax under Pakistan's Finance Act 2025 slabs for salaried individuals (Tax Year 2026). It takes about five seconds — and if the result raises questions, that conversation is free too.
- Covers salary income for filers on the Active Taxpayers List
- Shows your annual tax, monthly withholding and effective rate
- Excludes tax credits, surcharges and provincial taxes — we calculate those exactly for you
Enter a salary figure to see the estimate.
Get an exact calculation — freeEstimate only, for Tax Year 2026 salaried individuals. Actual liability can differ due to credits, investments, other income and surcharges. Confirm with a qualified consultant before acting.
Salary tax slabs 2025-26 (salaried persons)
These are the taxable-salary slabs that took effect on 1 July 2025 under the Finance Act 2025 and apply to the tax year ending 30 June 2026. Tax is computed as the fixed amount plus the marginal rate applied to the income above each slab's lower limit.
| Annual taxable salary | Fixed amount | Marginal rate |
|---|---|---|
| Up to Rs 600,000 | — | 0% |
| Rs 600,001 – Rs 1,200,000 | — | 1% of amount above Rs 600,000 |
| Rs 1,200,001 – Rs 2,200,000 | Rs 6,000 | 11% of amount above Rs 1,200,000 |
| Rs 2,200,001 – Rs 3,200,000 | Rs 116,000 | 23% of amount above Rs 2,200,000 |
| Rs 3,200,001 – Rs 4,100,000 | Rs 346,000 | 30% of amount above Rs 3,200,000 |
| Above Rs 4,100,000 | Rs 616,000 | 35% of amount above Rs 4,100,000 |
Source: Finance Act 2025 (Pakistan), salaried individuals slab schedule. Estimate only — excludes credits, Zakat, surcharges and non-salary income.
How salary tax is calculated in Pakistan
Start with your total annual salary receipts, subtract exempt items and allowable deductions to reach taxable income, then apply the slab schedule above. Your employer performs this calculation and withholds roughly one-twelfth of the expected annual tax from each monthly payslip under section 149 of the Income Tax Ordinance, 2001.
The withholding is adjustable, not final. When you file your annual return, credits for donations, pension contributions and Zakat reduce the liability, and any excess withheld comes back as a refund. This is why salaried people with simple income still benefit from filing — the return is where the money comes back.
Frequently asked questions
How is income tax calculated on salary in Pakistan?
Your employer totals your annual taxable salary (salary minus exempt allowances), then applies the applicable slab from the Finance Act schedule: a fixed amount plus a percentage of the income above the slab's lower limit. The tax is withheld monthly from your payslip under section 149 of the Income Tax Ordinance, 2001, and settled when you file your annual return.
What is the tax-free income limit for salaried persons in 2025-26?
For tax year 2026 (fiscal year 1 July 2025 – 30 June 2026), taxable salary up to Rs 600,000 per year — Rs 50,000 per month — carries no federal income tax. Above that, the 1% slab begins, rising progressively to 35% for the highest salaries.
Is this calculator the final tax I will pay?
No. It is an estimate for salaried income only, using the Finance Act 2025 slabs. It excludes tax credits (donations, pension contributions), Zakat deductions, surcharges, provincial taxes and any non-salary income. Your final liability is computed in your annual return — we review those items free of charge if you send us your documents.
How can I legally reduce my salary tax in Pakistan?
Common legal levers include: claiming tax credit for eligible charitable donations, contributing to an approved pension fund, structuring permissible allowances correctly, deducting Zakat paid, and — most importantly — filing on time as a filer, since non-filers pay higher rates on many transactions. A short consultation usually finds at least one overlooked relief.
What is the difference between a filer and non-filer?
A filer is on FBR's Active Taxpayer List because they file annual returns. Filers pay lower withholding tax on banking, vehicles, property and other transactions; non-filers pay significantly higher rates. For most salaried people, filing a return costs nothing and saves far more than the effort involved.
Want your actual tax computed — and filed?
Our tax consultants review your salary structure and documents free of charge, compute the exact figure, and file your return for a fixed fee quoted in writing.