Income tax calculator 2025-26 for Pakistan salary income
The Income Tax Calculator 2025-26 estimates salary income tax for the period from 1 July 2025 to 30 June 2026. It is useful for checking older payslips, employer salary certificates, annual tax planning and the effect of the high-income salary surcharge. Enter monthly or annual taxable salary on the home calculator and select FY 2025-26 to view estimated annual tax, monthly deduction, effective rate, marginal rate and take-home pay.
This page is limited to the standard salaried-person tax schedule. It is not a business income tax calculator, rental income tax calculator or complete tax return system. It is also not an official FBR income tax calculator. The figures are independent educational estimates based on the Finance Act 2025 and should be checked against current official guidance and the taxpayer's complete facts.
Pakistan salary tax slabs for FY 2025-26
| Annual taxable salary | FY 2025-26 tax formula |
|---|---|
| Up to Rs. 600,000 | 0% |
| Rs. 600,001 to Rs. 1,200,000 | 1% of the amount above Rs. 600,000 |
| Rs. 1,200,001 to Rs. 2,200,000 | Rs. 6,000 plus 11% of the amount above Rs. 1,200,000 |
| Rs. 2,200,001 to Rs. 3,200,000 | Rs. 116,000 plus 23% of the amount above Rs. 2,200,000 |
| Rs. 3,200,001 to Rs. 4,100,000 | Rs. 346,000 plus 30% of the amount above Rs. 3,200,000 |
| Above Rs. 4,100,000 | Rs. 616,000 plus 35% of the amount above Rs. 4,100,000 |
The formula is progressive. A person in the top band does not pay 35% on the entire annual salary. The fixed Rs. 616,000 covers tax through the lower bands, and 35% applies only to the portion above Rs. 4,100,000. This distinction is essential when calculating income tax in Pakistan.
The 9% surcharge above Rs. 10 million
For FY 2025-26, the calculator adds a surcharge equal to 9% of calculated salary income tax when annual taxable salary exceeds Rs. 10,000,000. The threshold is tested against annual taxable salary, while the 9% rate is applied to the calculated income tax rather than directly to salary. This means the result has three parts: base salary tax, surcharge on that tax and total annual liability.
For example, annual taxable salary of Rs. 12,000,000 produces base tax of Rs. 616,000 plus 35% of Rs. 7,900,000. Base tax is Rs. 3,381,000. The 9% surcharge is Rs. 304,290, producing estimated total annual salary tax of Rs. 3,685,290. Dividing by twelve gives an estimated average monthly deduction of about Rs. 307,108.
Worked salary examples for FY 2025-26
Rs. 100,000 per month
Annual taxable salary is Rs. 1,200,000. The amount above Rs. 600,000 is Rs. 600,000 and the applicable rate is 1%. Estimated annual tax is Rs. 6,000, monthly tax is Rs. 500 and estimated monthly take-home salary is Rs. 99,500 before other deductions.
Rs. 200,000 per month
Annual taxable salary is Rs. 2,400,000. The formula is Rs. 116,000 plus 23% of Rs. 200,000 above Rs. 2,200,000. Estimated annual tax is Rs. 162,000 and monthly tax is Rs. 13,500. Estimated monthly income after tax is Rs. 186,500.
Rs. 320,000 per month
Annual taxable salary is Rs. 3,840,000. The formula is Rs. 346,000 plus 30% of Rs. 640,000. Estimated annual tax is Rs. 538,000 and estimated monthly tax is about Rs. 44,833. The estimated monthly take-home salary is about Rs. 275,167 before other payroll items.
Rs. 500,000 per month
Annual taxable salary is Rs. 6,000,000. The formula is Rs. 616,000 plus 35% of Rs. 1,900,000. Estimated annual tax is Rs. 1,281,000 and estimated monthly tax is Rs. 106,750. Annual income remains below the Rs. 10 million surcharge threshold.
Rs. 900,000 per month
Annual taxable salary is Rs. 10,800,000. Base tax is Rs. 616,000 plus 35% of Rs. 6,700,000, which equals Rs. 2,961,000. The 9% surcharge is Rs. 266,490. Estimated total annual salary tax is Rs. 3,227,490 and average monthly tax is about Rs. 268,958.
Why an employer's monthly deduction may change
Salary tax is based on an estimated annual position, but employers deduct it during the year. A bonus, increment, promotion, joining date, resignation, previous-employment salary or updated tax credit can change the projection. Payroll may then increase or decrease deductions in later months so total withholding better matches the annual estimate. One payslip should therefore not always be multiplied by twelve.
When comparing the calculator with payroll, check that both use the same gross taxable salary, fiscal year and bonus information. Also confirm whether the employer has included the surcharge, previous salary, arrears or taxable benefits. Differences can also arise from rounding and from items outside the standard calculator.
Comparing FY 2025-26 with FY 2026-27
The FY 2026-27 schedule reduces several marginal rates and delays the 35% band until annual taxable salary exceeds Rs. 7 million. It also removes the FY 2025-26 salary surcharge from the calculator. For the same annual taxable salary, many users will see a lower estimate under the later year. The home page displays estimated annual and monthly savings, but each fiscal year remains a separate legal and filing period.
Do not use a later year's lower rate to recalculate salary earned in FY 2025-26. Select the fiscal year that actually covers the income. If an employment period crosses 30 June, use the multi-year tab as a planning aid and check the final allocation against salary records.
Taxable salary, bonuses and other income
The annual income tax calculator assumes that the entered amount is taxable salary. It does not decide whether a house rent allowance, medical benefit, reimbursement, employer contribution or other item is exempt or taxable. Add a taxable bonus only when it is not already included in the salary input. For income from property, business, investments or capital gains, use the appropriate legal rules rather than combining everything into the salary field.
Official source and independent status
The FY 2025-26 formula is based on the published Finance Act 2025 PDF. Further guidance and current notices can be checked on the FBR website. Income Tax Calculator is an independent website and has no official affiliation with FBR or the Government of Pakistan.
Frequently asked questions about FY 2025-26
What is the tax-free limit?
Annual taxable salary up to Rs. 600,000 is taxed at 0% under the standard schedule.
When is the 9% surcharge applied?
It is applied to calculated salary income tax when annual taxable salary exceeds Rs. 10 million. It is not 9% of the salary amount.
Can this page calculate a tax refund?
No. A refund depends on actual tax paid, final taxable income, credits, withholding statements and the filed return. This page estimates liability only.
Can I use it for a partial employment year?
The multi-year date tool can provide a planning estimate for supported periods, but final treatment should be checked against actual receipts and official records.