Income Tax Calculator Pakistan — FBR 2025–26 Slabs
Pakistani income tax for salaried individuals runs through six progressive slabs, and the figure most people argue about — "my tax rate" — is usually the wrong one: the top slab you touch is not the rate you pay overall. This tool applies the FY 2025–26 salaried slabs to your annual taxable income, adds the high-income surcharge where it applies, and reports the effective rate that actually describes your tax burden.
What income is tax-free for salaried individuals in FY 2025–26?
The first Rs. 600,000 of annual taxable income — Rs. 50,000 monthly — carries zero tax. The next slab to Rs. 1.2 million is taxed at just 1 percent of the excess, which keeps genuinely modest salaries near-exempt in practice.
What is the 9 percent surcharge and who pays it?
Individuals whose annual taxable income exceeds Rs. 10 million pay a surcharge of 9 percent of their computed tax — a tax on the tax, introduced for high earners. The tool adds it automatically above the threshold; below Rs. 10 million it never applies.
Is my marginal slab rate the same as my actual tax rate?
No — slabs are marginal, so each band of income is taxed at its own rate and only the income inside the top band pays the top rate. Someone "in the 23 percent slab" at Rs. 2.5 million annual income actually pays an effective rate near 7 percent overall. The effective-rate line in the result is the honest number.
Income Tax Calculator Pakistan
How the FY 2025–26 slab table works through your income
The six salaried slabs run: zero to Rs. 600,000 tax-free; 1 percent on the excess to Rs. 1.2 million; Rs. 6,000 plus 11 percent to Rs. 2.2 million; Rs. 116,000 plus 23 percent to Rs. 3.2 million; Rs. 346,000 plus 30 percent to Rs. 4.1 million; and Rs. 616,000 plus 35 percent beyond. Each slab’s fixed amount is simply the tax accumulated through all the slabs below it — the table is one continuous marginal curve, not six separate regimes. The structure means raises never reduce take-home: crossing a slab boundary taxes only the rupees past the line, and the "promotion pushed me into a worse bracket" worry is arithmetic myth.
Using the number: salary negotiation and annual planning
The effective-rate output earns its keep in salary negotiation: a gross offer converts to take-home only through the slab math, and two offers Rs. 50,000 apart in gross can land Rs. 35,000 apart in pocket at upper-middle incomes. Run both offers through this tool and negotiate on the net difference. The annual-planning use is timing-sensitive income — a bonus that lands in June versus July falls in different tax years, and for incomes near the Rs. 10 million surcharge threshold, which side of the line a payment lands on swings the bill by nine percent of the whole computed tax.
Where the estimate ends and the return begins
This tool answers "what do the slabs take" — the return answers "what is my taxable income," which involves exemptions, credits, adjustable withholding already deducted, and wealth-statement reconciliation. Salaried filers with one employer and clean withholding usually find the return confirms this estimate within a rounding error; anyone with rental income, capital gains, or foreign remittances has a longer evening ahead and, frequently, a refund owed they wouldn’t otherwise claim. The estimate is the budget; IRIS is the settlement.
More questions answered
It models the salaried-individual slabs, which apply when salary is more than 75 percent of taxable income. Business individuals and AOPs run on a different slab table with higher rates at most bands — a business-income estimate from this tool will understate the liability.
Gross salary minus exempt allowances and admissible deductions — medical allowance within limits, certain provident fund contributions, and tax credits for things like charitable donations under prescribed sections. The slab math is the easy part; the taxable-income computation is where a tax practitioner earns their fee.
Common reasons: bonuses and increments mid-year change the annualised projection your employer must withhold against, prior-month under-deduction being caught up, or taxable benefits (car, accommodation) added to your salary base. Compare against your salary slip’s taxable-income line, not your take-home figure.
The slab rates are identical, but non-filers bleed through withholding everywhere else — banking transactions, vehicle taxes, property deals all carry punitive non-filer rates. Filing isn’t about the salary slabs; it’s about everything around them. Our withholding tax tool prices the difference per transaction.
September 30 for individuals, extended some years by FBR notification. Missing it costs the ATL (Active Taxpayer List) placement — restoring non-filer withholding rates against you — plus late-filing penalties our FBR penalty calculator estimates.