Salary Tax Calculator — Pakistan
Calculate your income tax and take-home salary in Pakistan under the latest FBR slab rates. Enter your annual gross salary to see the annual tax liability, monthly tax deduction, and net monthly take-home pay.
Pakistan Salary Tax Slabs (2025-26)
Under the Income Tax Ordinance 2001, salaried individuals are taxed at the following rates for tax year 2025-26:
- Up to Rs. 600,000 — 0%
- Rs. 600,001 – 1,200,000 — 5% of amount exceeding 600,000
- Rs. 1,200,001 – 2,400,000 — Rs. 30,000 + 15% of amount exceeding 1,200,000
- Rs. 2,400,001 – 3,600,000 — Rs. 210,000 + 25% of amount exceeding 2,400,000
- Rs. 3,600,001 – 6,000,000 — Rs. 510,000 + 30% of amount exceeding 3,600,000
- Above Rs. 6,000,000 — Rs. 1,230,000 + 35% of amount exceeding 6,000,000
This calculator uses the higher 2025-26 rates. If you select 2024-25, the older slabs apply (top rate 35% above Rs. 4,100,000).
How to Use the Calculator
Enter your annual gross salary (before any deductions). Select the tax year, marital status, and whether Zakat is deducted at source. If your employer deducts provident fund from your salary, enter the percentage — this reduces taxable income.
The calculator shows your annual and monthly tax, effective rate (tax ÷ gross salary), monthly and annual take-home, and marginal rate (the rate on the next rupee earned). The marginal rate is useful for comparing the tax impact of a salary increase or bonus.
Worked Example
A salaried individual earns Rs. 2,400,000 per year:
Taxable income falls in the 1,200,001–2,400,000 slab: 15% of (2,400,000 − 1,200,000) = 15% × 1,200,000 = Rs. 180,000
Wait — this example actually falls in the 2,400,001–3,600,000 slab if salary exceeds 2.4M. Let me use Rs. 2,400,000 exactly:
Rs. 2,400,000 is within 1,200,001–2,400,000: Rs. 30,000 + 15% × (2,400,000 − 1,200,000) = 30,000 + 180,000 = Rs. 210,000
Monthly tax = Rs. 210,000 ÷ 12 = Rs. 17,500
Effective rate = Rs. 210,000 ÷ Rs. 2,400,000 = 8.75%
Monthly take-home = Rs. 200,000 − Rs. 17,500 = Rs. 182,500
Frequently Asked Questions
What is the income tax rate for salaried individuals in Pakistan?
For tax year 2025-26, salaried individuals pay 0% up to Rs. 600,000, and 5% to 35% at higher slabs. The highest marginal rate of 35% applies to income above Rs. 6,000,000. Compare this to non-salaried (business) individuals, who pay slightly different rates — this calculator only handles salaried individuals.
What is the difference between marginal tax rate and effective tax rate?
The marginal tax rate is the rate applied to your next rupee of income — the top slab you are in. The effective tax rate is your total tax divided by gross income — the average rate across all income. For a salaried individual earning Rs. 2.4M, the marginal rate is 15% but the effective rate is only 8.75% because part of the income is taxed at lower rates. Effective rate is what actually matters for take-home pay.
What is the tax-free threshold in Pakistan?
For salaried individuals, income up to Rs. 600,000 per year is tax-free (0%) under the 2025-26 slabs. This is Rs. 50,000 per month. Above this threshold, tax applies in slabs. Note: the threshold is lower for non-salaried individuals (Rs. 600,000 as well but with different slab structure).
Does Zakat reduce my income tax?
Zakat deducted at source under the Zakat and Ushr Ordinance is a deductible allowance, not a tax credit. It reduces your taxable income (and therefore your tax liability) but is separate from income tax. When you select "yes" for Zakat, this calculator treats the Zakat amount (2.5% of savings) as a deduction from taxable income. For most salaried individuals with no savings outside salary, Zakat deduction is small or zero.
Does provident fund reduce taxable income?
Yes — contributions to a recognised provident fund are deductible from taxable income under Section 60 of the Income Tax Ordinance. Employee contributions reduce taxable income (and therefore tax), up to certain limits. Employer contributions are also treated favourably. This calculator treats the employee contribution as a pre-tax deduction.
Are these tax rates accurate for 2025-26?
The rates used here reflect the slabs announced in Pakistan's 2025-26 federal budget. Tax rates can change mid-year through finance acts or supplementary budgets. For final tax returns, verify against the latest FBR guidance and consult a tax advisor. This calculator is for planning and estimation only.