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Salary Tax Calculator Pakistan 2025-2026 | FBR Income Tax Calculator | Updated

FBR Salary Tax Calculator

TAX YEAR 2025-26
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PKR 0PKR 2,00,000PKR 5,00,000PKR 10,00,000
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Your Tax Result

Finance Act 2025-26 · FBR Official Slabs · Updated April 2026

✓ FBR 2025-26
0%Eff. Rate

Your Effective Tax Rate

Your effective tax rate is the percentage of your total income that goes to FBR — always lower than your slab's marginal rate because lower income portions are taxed at lower rates.

Tax Slab Breakdown
Component Annual (PKR) Monthly (PKR)
⚠️ This is an estimate based on FBR Finance Act 2025-26 slabs. Actual tax may vary based on employer's calculation, additional allowances, and final FBR assessment. File your return at iris.fbr.gov.pk by September 30, 2026.
FBR Official Rates

Income Tax Slabs 2025-2026
for Salaried Persons

As per Finance Act 2025-26, effective July 1, 2025 to June 30, 2026. These slabs apply only to individuals whose salary income exceeds 75% of their total taxable income.

Slab Annual Taxable Income Monthly Equivalent Tax Rate Tax Formula
1 Up to PKR 600,000 ZERO TAX Up to PKR 50,000/mo 0% No tax payable
2 PKR 600,001 – PKR 1,200,000 PKR 50,001 – PKR 100,000/mo 1% 1% × (Income − 600,000)
3 PKR 1,200,001 – PKR 2,200,000 PKR 100,001 – PKR 183,333/mo 11% PKR 6,000 + 11% × (Income − 1,200,000)
4 PKR 2,200,001 – PKR 3,200,000 PKR 183,334 – PKR 266,667/mo 23% PKR 116,000 + 23% × (Income − 2,200,000)
5 PKR 3,200,001 – PKR 4,100,000 PKR 266,668 – PKR 341,667/mo 30% PKR 346,000 + 30% × (Income − 3,200,000)
6 Above PKR 4,100,000 Above PKR 341,667/mo 35% PKR 616,000 + 35% × (Income − 4,100,000)

Surcharge note: A 9% surcharge on income tax applies if annual taxable income exceeds PKR 10,000,000 (PKR 1 crore). Source: Finance Act 2025-26, FBR Income Tax Ordinance 2001 First Schedule Division I.

Historical Comparison

FBR Tax Slabs — Year by Year

See how FBR salary tax rates have changed from 2023-24 through 2025-26. The 2025-26 Finance Act brought significant relief especially for low and mid-income earners.

2023–24
Up to 600k0%
600k – 1.2m2.5%
1.2m – 2.4m12.5%
2.4m – 3.6m22.5%
3.6m – 6m27.5%
Above 6m35%
2024–25
Up to 600k0%
600k – 1.2m5%
1.2m – 2.2m15%
2.2m – 3.2m25%
3.2m – 4.1m30%
Above 4.1m35%
2025–26 CURRENT
Up to 600k0%
600k – 1.2m1% ↓
1.2m – 2.2m11% ↓
2.2m – 3.2m23% ↓
3.2m – 4.1m30%
Above 4.1m35%
💚 2025-26 Relief: The Finance Act 2025-26 reduced the Slab 2 rate from 5% → 1% (80% cut), Slab 3 from 15% → 11%, and Slab 4 from 25% → 23%. Monthly savings range from approximately PKR 2,000 to PKR 16,888 depending on income level.
Important Concepts

Everything About Salary Tax
in Pakistan

Key facts every salaried person in Pakistan should know about FBR income tax, deductions, and filer benefits.

📊

Progressive Tax System

Pakistan uses a progressive tax system — different portions of your income are taxed at different rates. You never pay the highest slab rate on your entire income, only on the portion that falls within that slab.

🏦

Employer Withholding (WHT)

Your employer calculates your estimated annual tax, divides it by 12, and deducts it monthly from your salary. This is called withholding tax at source — you don't pay FBR directly each month.

✅

Benefits of Being a Filer

Active FBR filers enjoy significantly lower withholding tax on bank withdrawals (0.6% vs 1.2%), property transactions, vehicle purchases, and dozens of other transactions. Register at iris.fbr.gov.pk.

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Medical Allowance Exemption

Up to 10% of your basic salary is exempt from income tax as medical allowance if paid by your employer. This effectively reduces your taxable income and can save thousands annually.

🕌

Zakat Deduction

Zakat paid on savings and assets is fully deductible from taxable income. If you pay Zakat through your bank, it is automatically deducted — keep records to claim this on your annual return.

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Filing Deadline: Sep 30, 2026

The FBR deadline for Tax Year 2026 income tax return is September 30, 2026. Filing on IRIS (iris.fbr.gov.pk) before this date maintains your Active Taxpayer List (ATL) status and all filer benefits.

Step-by-Step Guide

How to File Your Salary
Tax Return with FBR IRIS

Filing your annual income tax return in Pakistan is straightforward. Follow these 5 steps to become a filer and stay compliant.

1

Get Your NTN

Register on iris.fbr.gov.pk to get your National Tax Number (NTN) using CNIC and mobile number.

2

Collect Documents

Gather your salary certificate, Form 16 from employer, bank statements, and Zakat receipts.

3

Log into IRIS

Go to iris.fbr.gov.pk → Declaration → Income Tax Return → Tax Year 2026 (Jul 2025 – Jun 2026).

4

Enter Income Details

Enter gross salary, allowances, deductions, and any other income sources. IRIS calculates tax automatically.

5

Submit Before Sep 30

Verify and submit your return before September 30, 2026 to avoid penalties and maintain ATL filer status.

Common Questions

Salary Tax FAQ — Pakistan 2025-26

Answers to the most common questions about FBR salary income tax calculation in Pakistan.

For salaried persons, the 2025-26 slabs are: 0% up to PKR 600,000 · 1% on PKR 600k–1.2m · PKR 6,000 + 11% on PKR 1.2m–2.2m · PKR 116,000 + 23% on PKR 2.2m–3.2m · PKR 346,000 + 30% on PKR 3.2m–4.1m · PKR 616,000 + 35% above PKR 4.1m.
A PKR 100,000/month (PKR 1,200,000 annual) salary incurs PKR 6,000 annual tax — just PKR 500 per month under the 2025-26 slabs. This is a significant reduction from PKR 30,000/year under the 2024-25 slabs.
Salaried individuals earning up to PKR 600,000 per year (PKR 50,000 per month) pay zero income tax in Pakistan. This is the exemption threshold for Tax Year 2025-26 as per FBR Finance Act.
Yes — even if your employer deducts withholding tax monthly, you must file an annual return on IRIS to remain on the Active Taxpayer List (ATL). Without filing, you lose filer benefits and face higher WHT on transactions. Deadline: September 30, 2026.
A filer is registered on the FBR Active Taxpayer List (ATL) and enjoys lower withholding tax rates on banking, property, vehicles, and other transactions. A non-filer pays double WHT on these transactions. Becoming a filer is free — just file your annual return on IRIS before the deadline.
No. A PKR 50,000/month salary equals exactly PKR 600,000/year — the zero-tax threshold. There is no income tax payable on this salary. However, you may still benefit from filing a return to get on the ATL and enjoy filer benefits across other transactions.
Yes. Full-time teachers and researchers at recognized educational institutions can receive up to a 25% reduction in income tax, subject to FBR conditions and verification of employment at a qualifying institution.
For salaried individuals with annual taxable income exceeding PKR 10,000,000 (PKR 1 crore), a 9% surcharge is imposed on the income tax payable. This is in addition to the standard 35% top rate, significantly increasing the effective rate for ultra-high earners.

Disclaimer — Pakistan Salary Tax Calculator 2025-26

All tax calculations are estimates based on FBR Finance Act 2025-26 income tax slabs for salaried persons. Actual tax liability may vary based on employer assessment, additional income sources, applicable deductions, and FBR rulings. This is an independent informational tool — not affiliated with FBR or the Government of Pakistan. Always file your return on the official FBR IRIS portal at iris.fbr.gov.pk.

© 2026 Pakistan Salary Tax Calculator · Updated April 2026 · Finance Act 2025-26 Compliant