Pakistan Salary Tax Calculator 2025–2026

FBR Salaried Individual Income Tax Brackets (Tax Year 2026 / FY 2025–26)

Under the First Schedule of the Income Tax Ordinance 2001 as enacted by the Federal Board of Revenue (FBR) for Tax Year 2026, salaried individuals (where salary constitutes more than 75% of taxable income) are taxed according to the following progressive slabs:

• Up to PKR 600,000 / year: 0% (Tax Exempt).
• PKR 600,001 to 1,200,000: 1% of the amount exceeding PKR 600,000.
• PKR 1,200,001 to 2,200,000: PKR 6,000 + 11% of the amount exceeding PKR 1,200,000.
• PKR 2,200,001 to 3,200,000: PKR 116,000 + 23% of the amount exceeding PKR 2,200,000.
• PKR 3,200,001 to 4,100,000: PKR 346,000 + 30% of the amount exceeding PKR 3,200,000.
• Exceeding PKR 4,100,000: PKR 616,000 + 35% of the amount exceeding PKR 4,100,000.
• High-Income Surcharge: For taxable income exceeding PKR 10,000,000, an additional 9% surcharge is levied on the calculated tax payable.

Employers deduct this tax proportionately at source each month under Section 149 of the Ordinance.

Example Scenario: PKR 150,000 Monthly Salary (PKR 1,800,000 Annual)

Step 1: Identify Slab → Annual taxable income PKR 1,800,000 falls into Slab 3 (PKR 1,200,001 to 2,200,000).

Step 2: Base Tax & Excess Rate → Base tax is PKR 6,000 plus 11% on excess over PKR 1,200,000.

Step 3: Excess Calculation → 1,800,000 - 1,200,000 = PKR 600,000.

Step 4: Variable Tax → 11% × 600,000 = PKR 66,000.

Step 5: Total Annual Tax → 6,000 + 66,000 = PKR 72,000 / year.

Step 6: Monthly Deduction → 72,000 ÷ 12 = PKR 6,000 / month.

Monthly Take-Home Pay: 150,000 - 6,000 = PKR 144,000 / month (Effective tax rate: 4.00%).