Income Tax Calculator Pakistan

Estimate income tax for salaried individuals in Pakistan using FBR's progressive slab rates. Enter your income and tax year to see tax payable, the equivalent monthly deduction, net income, and effective tax rate.

Quick Facts

Formula
Tax = base + rate × (income − bracket floor)
Progressive slabs from 0% up to 35%; income up to PKR 600,000/year is exempt.
Tax Year 2026-27
8 brackets, top rate 35% above PKR 7,000,000
Per the Finance Act 2026; the prior 9% high-income surcharge was abolished.
Scope
Salaried individuals only
Business individuals and AOPs use a separate slab structure not covered here.

Your Results

Calculated
Total tax payable
-
Annual income tax, plus surcharge if applicable
Monthly tax deduction
-
Total tax ÷ 12
Net annual income
-
Taxable income minus total tax
Effective tax rate
-
Total tax ÷ taxable income

Ready

Enter your income, choose the period and tax year, then press Calculate.

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.

Frequently Asked Questions

How is Pakistan income tax calculated for salaried individuals?
FBR applies progressive slabs to annual taxable income: each bracket has a fixed base amount plus a marginal rate applied to the amount above that bracket's floor. For example, under the 2026-27 slabs, income between PKR 2,200,000 and PKR 3,200,000 is taxed at PKR 116,000 plus 20% of the amount over PKR 2,200,000.
What changed between the 2025-26 and 2026-27 tax years?
The Finance Act 2026, effective 1 July 2026, restructured the six salaried brackets used in 2025-26 into eight brackets, raised the threshold for the top 35% rate from PKR 4,100,000 to PKR 7,000,000, and abolished the 9% surcharge that previously applied when taxable income exceeded PKR 10,000,000.
Does this calculator include the high-income surcharge?
When you select the 2025-26 tax year, it adds a 9% surcharge on the computed tax if annual taxable income exceeds PKR 10,000,000, matching the rule in force that year. The 2026-27 slabs no longer include this surcharge.
Does this cover business income or AOPs?
No. This calculator uses the salaried-individual slabs, which apply when salary makes up more than 75% of taxable income. Business individuals and associations of persons (AOPs) are taxed under a separate rate schedule not modeled here.