Income Tax Calculator — Pakistan
Calculate your annual income tax liability in Pakistan under the latest FBR slabs. This calculator works for both salaried individuals and non-salaried (business/professional) individuals — select the taxpayer type to apply the correct rate schedule.
Pakistan Income Tax Slabs 2025-26
Salaried Individuals:
- Up to Rs. 600,000 — 0%
- Rs. 600,001 – 1,200,000 — 5% of amount over 600,000
- Rs. 1,200,001 – 2,400,000 — Rs. 30,000 + 15% of amount over 1,200,000
- Rs. 2,400,001 – 3,600,000 — Rs. 210,000 + 25% of amount over 2,400,000
- Rs. 3,600,001 – 6,000,000 — Rs. 510,000 + 30% of amount over 3,600,000
- Above Rs. 6,000,000 — Rs. 1,230,000 + 35% of amount over 6,000,000
Non-Salaried (Business/Professional) Individuals:
- Up to Rs. 600,000 — 0%
- Rs. 600,001 – 1,200,000 — 15% of amount over 600,000
- Rs. 1,200,001 – 1,600,000 — Rs. 90,000 + 20% of amount over 1,200,000
- Rs. 1,600,001 – 3,200,000 — Rs. 170,000 + 30% of amount over 1,600,000
- Rs. 3,200,001 – 5,600,000 — Rs. 650,000 + 40% of amount over 3,200,000
- Above Rs. 5,600,000 — Rs. 1,610,000 + 45% of amount over 5,600,000
Non-salaried rates are higher than salaried rates because business income has more scope for deductions and planning. Verify against the latest FBR Finance Act before filing.
How to Use This Calculator
Enter your annual taxable income — this is income after all allowable deductions and exemptions, not gross salary. Select the taxpayer type: salaried individuals pay lower rates; non-salaried (business, freelance, professional) pay higher rates.
The calculator shows total tax payable, effective rate (total tax ÷ income), marginal rate (the rate on your last rupee), and after-tax income. Use the marginal rate to estimate the tax impact of additional income.
Worked Example
Salaried individual: Annual taxable income Rs. 2,400,000
Falls in slab 1,200,001–2,400,000: Rs. 30,000 + 15% × (2,400,000 − 1,200,000) = Rs. 30,000 + Rs. 180,000 = Rs. 210,000
Effective rate = Rs. 210,000 ÷ Rs. 2,400,000 = 8.75%
After-tax income = Rs. 2,190,000
Non-salaried individual: Same income Rs. 2,400,000
Falls in slab 1,600,001–3,200,000: Rs. 170,000 + 30% × (2,400,000 − 1,600,000) = Rs. 170,000 + Rs. 240,000 = Rs. 410,000
Effective rate = Rs. 410,000 ÷ Rs. 2,400,000 = 17.08%
The non-salaried individual pays roughly twice the tax on the same income. This is a key difference to understand if you are shifting between employment and self-employment.
Frequently Asked Questions
What is the difference between salaried and non-salaried tax rates in Pakistan?
Salaried individuals pay lower rates because their income is already documented and taxed at source. The top salaried rate is 35%, while the top non-salaried rate is 45%. The slabs also differ — non-salaried individuals hit higher rates at lower income levels. This reflects the tax authority's preference for documented employment income over business income.
What is taxable income?
Taxable income is gross income minus all allowable deductions and exemptions. For salaried individuals, it is gross salary minus provident fund contributions, certain allowances, and Zakat. For business individuals, it is net business income minus business expenses, depreciation, and other deductions. This calculator assumes you have already calculated taxable income — enter the final number, not the gross.
How is the effective tax rate calculated?
Effective rate = total tax ÷ total income × 100. It is the average rate you pay across all income, not the rate on your last rupee. For a salaried individual at Rs. 2.4M, the marginal rate is 15% but the effective rate is 8.75% — because part of the income falls in lower slabs. Effective rate is what determines your actual take-home.
Are there additional taxes or surcharges?
Yes — for high earners, there is a 9% surcharge on income tax for taxable income above Rs. 10 million (in addition to the 35% top rate). There are also super tax provisions for very high earners and specific industries. This calculator shows only the base income tax — it does not include surcharge or super tax. For high-income planning, add those separately or consult a tax advisor.
What is the difference between income tax and sales tax in Pakistan?
Income tax is a direct tax on your earnings — paid annually (or deducted monthly from salary). Sales tax (GST) is an indirect tax on goods and services — paid at the point of purchase. Income tax is progressive (higher earners pay more); sales tax is flat (everyone pays the same rate). Both are administered by the FBR but serve different purposes and are calculated differently.
Are these rates accurate for 2025-26?
The rates shown reflect the slabs announced in Pakistan's 2025-26 federal budget. Tax law can change mid-year through finance acts. For final planning or filing, verify against the latest FBR guidance and consult a qualified tax advisor. This calculator is for estimation only.