What are the income tax slabs for salaried employees in Pakistan 2025-26?

Under FBR's 2025-26 Finance Act, salaried individuals pay: 0% on income up to Rs 600,000/year; 5% on Rs 600,001–1,200,000; 15% on Rs 1,200,001–2,200,000; 25% on Rs 2,200,001–3,200,000; 30% on Rs 3,200,001–4,100,000; and 35% above Rs 4,100,000. Each rate applies only to the portion of income within that bracket — not the full income.

How do I calculate income tax on my salary in Pakistan?

To calculate income tax: (1) determine your annual taxable income, (2) apply each FBR slab rate progressively to the income within each bracket, (3) sum all bracket taxes. For example, a monthly salary of Rs 100,000 (Rs 1.2M annual) pays 5% on the Rs 600,001–1,200,000 bracket = Rs 30,000/year or Rs 2,500/month. Use HisaabKaro's income tax calculator to compute your exact figure instantly.

Is there a tax-free income limit in Pakistan for 2025-26?

Yes. For salaried individuals, income up to Rs 600,000 per year (Rs 50,000 per month) is completely exempt from income tax under FBR's 2025-26 slabs. Business individuals also pay 0% on the first Rs 600,000 of annual income.

What is the difference between salaried and business income tax in Pakistan?

Salaried individuals and business/self-employed persons are taxed under separate slab schedules. The salaried schedule typically has lower rates at higher income levels. Business income (sole proprietors, AOP members) follows the business income slab schedule. Select the correct income type in the calculator above for accurate results.

💼 Income Tax Calculator

FBR Income Tax Calculator 2025-26

Calculate your exact income tax using FBR's latest tax slabs — for both salaried employees and business individuals. See your take-home pay, effective rate, and full tax bracket breakdown.

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FBR Tax Year 2025-26

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Tax Bracket Rates

FBR Tax Slabs 2024-25

Salaried Individuals

Annual Income Range	Rate	Fixed Tax	Your Tax from Slab

Income Tax in Pakistan 2025-26

Pakistan's income tax is governed by the Income Tax Ordinance 2001 and administered by the Federal Board of Revenue (FBR). For salaried individuals, tax is deducted at source by employers and deposited directly with FBR. Business individuals file and pay tax annually through FBR's IRIS portal.

The tax year in Pakistan runs from July 1 to June 30. Both salaried and business individuals with annual income up to Rs 600,000 are exempt from income tax.

Important Notes

Tax is progressive — higher income falls into higher brackets incrementally
Business individuals face higher rates than salaried employees — use the toggle to compare
Rebates, deductions (Zakat, pension, etc.) can reduce taxable income
A 9% surcharge applies on income tax for salaried persons earning above Rs 10 million
Always verify with FBR's official portal or a tax consultant

Frequently Asked Questions

What is the minimum taxable income in Pakistan 2024-25?

For salaried individuals in 2025-26, the minimum taxable income threshold remains Rs 600,000 per year (Rs 50,000 per month). If your annual salary is below this amount, you owe zero income tax to FBR.

What is the difference between salaried and business tax slabs?

Salaried individuals benefit from lower tax rates set under the Finance Act. Business / non-salaried individuals are taxed at higher rates — starting at 15% above Rs 600,000 vs 5% for salaried. Use the Employment Type toggle on this calculator to compare both.

How do I file an income tax return in Pakistan?

You can file your income tax return online through the FBR's IRIS portal (iris.fbr.gov.pk). The deadline for salaried individuals is typically September 30 each year. You'll need your CNIC, bank statements, salary certificate, and NTN (National Tax Number).

What is Super Tax in Pakistan?

Super Tax is an additional levy on high-income individuals. For tax year 2024-25, individuals with income above Rs 15,000,000 (1.5 crore) are subject to additional Super Tax ranging from 1% to 10% on the amount exceeding the threshold.

Can Zakat paid reduce income tax?

Yes! Zakat paid is deductible under Section 60(1) of the Income Tax Ordinance 2001. If you've paid Zakat, you can subtract it from your taxable income, effectively reducing your tax bill. Keep documentation of Zakat paid for record purposes.