How the Income Tax Calculator Pakistan works
This tool estimates annual income tax for salaried individuals in Pakistan using the progressive slab rates published by the Federal Board of Revenue (FBR). Enter your income, tell the calculator whether that figure is a monthly salary or an annual taxable income, pick the tax year, and it applies the matching bracket structure to compute the tax payable, the equivalent monthly deduction, net income after tax, and the effective tax rate.
The slab formula
Pakistan taxes salaried income progressively: each bracket is defined by a fixed base amount plus a marginal rate applied only to the portion of income that falls above that bracket's floor. In general form:
Tax = Base + Rate × (Taxable income − Bracket floor)
Income up to PKR 600,000 a year is fully exempt (0%). For the 2026-27 tax year (effective 1 July 2026, per the Finance Act 2026) the eight brackets are:
- Up to PKR 600,000: 0%
- PKR 600,001–1,200,000: 1% of the amount over PKR 600,000
- PKR 1,200,001–2,200,000: PKR 6,000 + 11% of the amount over PKR 1,200,000
- PKR 2,200,001–3,200,000: PKR 116,000 + 20% of the amount over PKR 2,200,000
- PKR 3,200,001–4,100,000: PKR 316,000 + 25% of the amount over PKR 3,200,000
- PKR 4,100,001–5,600,000: PKR 541,000 + 29% of the amount over PKR 4,100,000
- PKR 5,600,001–7,000,000: PKR 976,000 + 32% of the amount over PKR 5,600,000
- Above PKR 7,000,000: PKR 1,424,000 + 35% of the amount over PKR 7,000,000
The prior 2025-26 tax year used a narrower six-bracket table topping out at 35% above PKR 4,100,000, plus a 9% surcharge on the computed tax when annual taxable income exceeded PKR 10,000,000. That surcharge was withdrawn for 2026-27. Select either tax year in the calculator to compare.
Worked example
Take an annual taxable income of PKR 3,000,000 under the 2026-27 slabs. That falls in the PKR 2,200,001–3,200,000 bracket: tax = PKR 116,000 + 20% × (3,000,000 − 2,200,000) = PKR 116,000 + PKR 160,000 = PKR 276,000. That works out to about PKR 23,000 withheld per month, leaving PKR 2,724,000 net for the year — an effective rate of 9.2%, even though the marginal rate applied to the last rupee earned is 20%.
Marginal versus effective rate
Because only the income inside each bracket is taxed at that bracket's rate, the effective rate (total tax ÷ total income) is always lower than the top marginal rate that applies at your income level. The calculator's results report the effective rate directly, and the summary line under the results notes the marginal bracket rate for context.
Scope and assumptions
This calculator models the standard salaried-individual slabs, which apply when salary income makes up more than 75% of total taxable income. It assumes the figure you enter is either a straightforward monthly gross salary or an annual taxable income already net of allowable deductions and exemptions. Business individuals, non-salaried persons, and associations of persons (AOPs) are taxed under a separate rate schedule with different thresholds that this tool does not model, and it does not calculate tax credits, rebates, or withholding on other income types such as property or capital gains. Confirm figures against FBR's official notification for the relevant tax year or a tax practitioner before filing.
When to re-run this calculation
Re-run the estimate whenever your salary changes, at the start of a new tax year once the federal budget revises the slabs, or before filing your annual return to check total tax already withheld against what is actually owed.