How your tax is built up
| Annual income band (Rs) | Rate | Your income in band | Tax on band |
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This calculator applies the salaried-individual slabs (for people whose salary is more than 75% of taxable income). It is an estimate for planning, not tax advice. See the disclaimer.
How salary tax works in Pakistan
Pakistan uses a progressive system for salaried people: the more you earn, the higher the rate on each additional rupee. The first Rs 600,000 of the year is tax-free. Income above that is taxed in bands, with rates rising from 1% up to 35%.
Your employer deducts the tax from your salary every month and deposits it with the FBR. Because the slabs apply to annual income, the calculator multiplies a monthly salary by 12 first, then divides the final tax by 12 to show the monthly deduction.
What changed for 2026-27
- The 23% rate on income between Rs 2.2 million and Rs 3.2 million was cut to 20%.
- The 30% rate on income between Rs 3.2 million and Rs 4.1 million was cut to 25%.
- A new 29% band now covers Rs 4.1 million to Rs 5.6 million, with a 32% band up to Rs 7 million. The top 35% rate starts above Rs 7 million.
- The 9% surcharge on salaried income above Rs 10 million was abolished.
Anyone earning up to Rs 2.2 million a year (about Rs 183,000 a month) pays the same as last year. See the full tax slab table or browse the tax at common salaries.
Worked example: Rs 200,000 per month
Annual salary = 200,000 × 12 = Rs 2,400,000. This falls in the 20% band, so tax = 116,000 + 20% of (2,400,000 − 2,200,000) = 116,000 + 40,000 = Rs 156,000 a year, or Rs 13,000 a month.
Frequently asked questions
Is my salary tax-free up to a certain amount?
Yes. Annual taxable salary up to Rs 600,000 (Rs 50,000 a month) is exempt.
Do I still need to file a return if my employer deducts tax?
Generally yes. Salaried taxpayers file an annual return on the FBR IRIS portal, and the usual deadline is 30 September. Filing keeps you on the Active Taxpayer List, which lowers withholding tax on bank transactions, property and vehicle purchases.
Does this include allowances, bonuses or other income?
Enter the total taxable amount. Some allowances and benefits are exempt or taxed differently, and other income (rent, business) may fall outside the salaried rates. Check with a tax professional for your exact case.