Calculate your exact income tax based on FBR's updated salary tax slabs for FY 2025-26. Enter your monthly or annual salary below.
| Annual Income Slab | Tax Rate | Tax on This Slab |
|---|
📌 Updated for FY 2025-26: The Finance Act 2025-26 reduced salary tax rates for middle-income earners. The 600K-1.2M bracket dropped to 1%, the 1.2M-2.2M bracket to 11%, and the 2.2M-3.2M bracket to 23%.
Salary income tax in Pakistan is a direct tax levied by the Federal Board of Revenue (FBR) on the earnings of salaried individuals. Under the Income Tax Ordinance 2001, if more than 75% of your total income comes from salary, you are classified as a salaried person and benefit from lower, preferential tax rates compared to business income earners.
Pakistan follows a progressive tax system, meaning each income bracket is taxed at its own rate — you only pay the higher rate on the portion of income that falls within that slab, not on your entire income.
The following income tax slabs are effective from July 1, 2025 to June 30, 2026, as notified under the Finance Act 2025-26:
| Annual Income (PKR) | Rate | Tax Formula |
|---|---|---|
| Up to Rs. 600,000 | 0% | Nil — Fully Exempt |
| Rs. 600,001 – Rs. 1,200,000 | 1% | 1% of amount exceeding Rs. 600,000 |
| Rs. 1,200,001 – Rs. 2,200,000 | 11% | Rs. 6,000 + 11% of amount exceeding Rs. 1,200,000 |
| Rs. 2,200,001 – Rs. 3,200,000 | 23% | Rs. 116,000 + 23% of amount exceeding Rs. 2,200,000 |
| Rs. 3,200,001 – Rs. 4,100,000 | 30% | Rs. 346,000 + 30% of amount exceeding Rs. 3,200,000 |
| Above Rs. 4,100,000 | 35% | Rs. 616,000 + 35% of amount exceeding Rs. 4,100,000 |
Your employer calculates your estimated annual tax, divides it by 12, and deducts it from your monthly paycheck. This is called withholding tax or tax deduction at source. Your employer deposits this amount to FBR on a monthly basis.