How to Calculate Pakistan Income Tax 2025-2026 - Complete Guide
Understanding your Pakistan income tax liability is crucial for financial planning. The Federal Board of Revenue (FBR) has updated the income tax slabs for salaried individuals in the Finance Act 2025. This free Pakistan tax calculator helps you accurately estimate your take-home salary after tax deductions. Find all previous years' Finance Acts here.
Our Pakistan salary tax calculator 2025-26 is designed for Pakistani employees who want to calculate their monthly and yearly income tax obligations according to the latest FBR tax slabs.
Key Changes in 2025-26 Budget
- The basic exemption limit remains at PKR 600,000 per year.
- Tax rates for higher slabs have been adjusted to ensure progressive taxation.
- This calculator automatically adjusts for the 9-10% surcharge on high earners (above 10 Million/year).
Official Salary Tax Slabs 2025-2026
The following table shows the latest tax rates for salaried individuals as per the Finance Act 2025. These rates are applicable for the Tax Year 2026 (July 2025 to June 2026).
| S# | Taxable Income (PKR) | Rate of Tax |
|---|---|---|
| 1 | Where taxable income does not exceed Rs. 600,000/- | 0% |
| 2 | Where taxable income exceeds Rs. 600,000/- but does not exceed Rs. 1,200,000/- | 1% of the amount exceeding Rs. 600,000/- |
| 3 | Where taxable income exceeds Rs. 1,200,000/- but does not exceed Rs. 2,200,000/- | Rs. 6,000/- + 11% of the amount exceeding Rs. 1,200,000/- |
| 4 | Where taxable income exceeds Rs. 2,200,000/- but does not exceed Rs. 3,200,000/- | Rs. 116,000/- + 23% of the amount exceeding Rs. 2,200,000/- |
| 5 | Where taxable income exceeds Rs. 3,200,000/- but does not exceed Rs. 4,100,000/- | Rs. 346,000/- + 30% of the amount exceeding Rs. 3,200,000/- |
| 6 | Where taxable income exceeds Rs. 4,100,000/- | Rs. 616,000/- + 35% of the amount exceeding Rs. 4,100,000/- |
Note: A surcharge of 9% is applicable on the income tax liability for individuals where taxable income exceeds Rs. 10 Million per year.
Why Use This Calculator?
Our tool is designed for speed and accuracy. Unlike complex Excel sheets, this calculator runs directly in your browser, providing instant results for the current tax year as well as historical data dating back 10 years.
Frequently Asked Questions (FAQs)
How accurate is this Pakistan tax calculator?
Our calculator is 100% accurate and complies with the latest FBR (Federal Board of Revenue) tax slabs as per Finance Act 2025. It includes all tax rates, surcharges, and exemptions for the 2025-26 tax year.
What is the tax-free limit in Pakistan for 2025-26?
The tax-free income limit in Pakistan for 2025-26 is Rs. 600,000 per year. If your annual income is below this amount, you don't need to pay any income tax.
How do I calculate my monthly tax from yearly income?
Simply divide your annual tax liability by 12 months. Our calculator automatically shows both monthly and yearly tax breakdowns for your convenience.
What is the highest tax rate in Pakistan?
The highest income tax rate in Pakistan is 35% for income exceeding Rs. 4,100,000. Additionally, a 9% surcharge applies if your annual income exceeds Rs. 10 million.
Does this calculator include provincial taxes?
This calculator focuses on federal income tax as per FBR guidelines. Provincial taxes and other local taxes are not included in these calculations.
Can I use this for business income tax calculation?
This calculator is specifically designed for salaried individuals. Business income has different tax slabs and rules which are not covered by this tool.
💡 Smart Tax Planning Tips for Pakistan 2025-26
Maximize your savings with these legitimate tax planning strategies recommended by financial experts.
🏠 House Rent Allowance (HRA)
If you're renting, ensure your employer provides HRA which is tax-exempt up to 50% of basic salary or actual rent paid, whichever is lower.
🏥 Medical Allowance
Medical allowance up to PKR 10,000 per month (PKR 120,000 annually) is completely tax-exempt if properly documented.
🚗 Transport & Fuel Allowance
Transport allowance is tax-free, and fuel allowance based on engine capacity can significantly reduce your taxable income.
📚 Professional Development
Training and certification expenses paid by employers are tax-exempt, helping you grow professionally while saving taxes.
🍽️ Meal Allowance
Free meals or meal allowance provided by employer during working hours are tax-exempt benefits worth considering.
💰 Salary Structure Optimization
Work with HR to restructure salary into tax-exempt allowances rather than increasing basic salary directly.