Calculate your income tax for the FBR 2025-26 tax year. Based on the latest Pakistani tax slabs for salaried individuals. Free, instant results, no signup required.
Calculate My Tax Free →The Federal Board of Revenue (FBR) is Pakistan's tax authority responsible for collecting federal taxes. Every salaried individual in Pakistan who earns above the exemption threshold (Rs. 600,000 annually for 2025-26) is required to pay income tax on their salary.
Income tax for salaried employees in Pakistan is deducted automatically from your monthly salary by your employer through the withholding tax mechanism. Your employer calculates your estimated annual tax, divides by 12, and deducts that amount each month, depositing it with FBR on your behalf.
An FBR income tax calculator is an online tool that applies Pakistan's current FBR tax slabs for salaried individuals to calculate your annual tax liability, monthly deduction, effective tax rate, and net take-home salary. It removes the need to manually look up tax slabs and perform step-by-step calculations, giving you instant, accurate results for tax year 2025-26.
The following tax rates apply to salaried employees for the tax year 2025-26 (July 2025 – June 2026). These are the rates applicable to income earned from employment only:
| Annual Income | Tax Rate | Annual Tax Range | Monthly Salary |
|---|---|---|---|
| Up to Rs. 600,000 | 0% | Nil | Up to Rs. 50,000/month |
| Rs. 600,001 – 1,200,000 | 5% | Rs. 0 – 30,000 | Rs. 50,001 – 100,000/month |
| Rs. 1,200,001 – 2,200,000 | 15% | Rs. 30,000 – 180,000 | Rs. 100,001 – 183,333/month |
| Rs. 2,200,001 – 3,200,000 | 25% | Rs. 180,000 – 430,000 | Rs. 183,334 – 266,667/month |
| Rs. 3,200,001 – 4,100,000 | 30% | Rs. 430,000 – 700,000 | Rs. 266,668 – 341,667/month |
| Above Rs. 4,100,000 | 35% | Rs. 700,000+ | Above Rs. 341,667/month |
* These slabs apply to salaried individuals only. Business income and other income categories have different rates. Source: Finance Act 2025-26, FBR Pakistan.
Here are step-by-step tax calculations for common Pakistani salary levels in 2025-26:
Rs. 60,000/month (Rs. 720,000/year)
📌 Slab 2: 5% on excess over Rs. 600,000
Tax = 5% × (720,000 − 600,000) = 5% × 120,000 = Rs. 6,000/year
Rs. 100,000/month (Rs. 1,200,000/year)
📌 Slab 2 boundary: 5% on excess over Rs. 600,000
Tax = 5% × (1,200,000 − 600,000) = 5% × 600,000 = Rs. 30,000/year
Rs. 150,000/month (Rs. 1,800,000/year)
📌 Slab 3: Rs. 30,000 + 15% on excess over Rs. 1,200,000
Tax = 30,000 + 15% × (1,800,000 − 1,200,000) = 30,000 + 90,000 = Rs. 120,000/year
Rs. 250,000/month (Rs. 3,000,000/year)
📌 Slab 4: Rs. 180,000 + 25% on excess over Rs. 2,200,000
Tax = 180,000 + 25% × (3,000,000 − 2,200,000) = 180,000 + 200,000 = Rs. 380,000/year
Pakistan's income tax law provides several deductions and credits that salaried employees can use to reduce their taxable income. All of these are completely legal and recognized by FBR:
Zakat paid on savings deducted from salary is allowed as a straight deduction from taxable income. Ensure your bank marks you as a Muslim for automatic Zakat deduction, which FBR acknowledges.
Contributions to recognized provident funds by both employee and employer are deductible from taxable salary. Check if your employer's provident fund is FBR-recognized.
Contributions to recognized pension plans (RPP) up to 20% of your taxable income are deductible. This is particularly valuable for higher income earners in the 25-35% slabs.
Premiums paid for life insurance policies are eligible for a tax credit. The credit is calculated as a percentage of tax payable, reducing your actual tax bill.
First-time homebuyers can claim a 10-year tax credit of 1% of construction cost or market value annually. Government housing schemes (Naya Pakistan Housing) may offer additional benefits.
Tuition fees paid to registered educational institutions in Pakistan qualify for tax relief. Keep receipts and ensure the institution is listed with the Higher Education Commission.
Even if tax is already deducted from your salary, you are required to file an annual income tax return in Pakistan. Here is how to do it:
Register at iris.fbr.gov.pk using your CNIC to obtain a National Tax Number (NTN). This is your tax identity in Pakistan.
Gather your Form 16/salary certificate from employer, bank statements, and proof of any deductions (Zakat, insurance, pension).
Log into the FBR Iris portal and complete your wealth statement and income tax return. The return is for the fiscal year (July–June).
The deadline for salaried employees is September 30 of the following year. Filing on time keeps you on the Active Taxpayer List (ATL), giving you benefits as a filer.
FBR 2025-26 salaried slabs: 0% up to Rs. 600,000 | 5% on Rs. 600,001–1,200,000 | 15% (+ Rs. 30,000 base) on Rs. 1,200,001–2,200,000 | 25% (+ Rs. 180,000) on Rs. 2,200,001–3,200,000 | 30% (+ Rs. 430,000) on Rs. 3,200,001–4,100,000 | 35% (+ Rs. 700,000) above Rs. 4,100,000.
Rs. 100,000/month = Rs. 1,200,000/year. Tax = 5% × (1,200,000 − 600,000) = Rs. 30,000/year = Rs. 2,500/month. Your net take-home is Rs. 97,500/month with an effective rate of 2.5%.
Yes. Your employer deducts Withholding Tax (WHT) every month and deposits it with FBR. The monthly deduction equals your estimated annual tax divided by 12. You receive a Form 16 certificate at year-end showing total deductions.
The exemption threshold for salaried individuals is Rs. 600,000 annually (Rs. 50,000/month). Income up to this limit is completely tax-free. If your annual salary exceeds Rs. 600,000, only the excess is taxed.
For salary income, tax rates are the same for filers and non-filers. However, being an active tax filer (on FBR's Active Taxpayer List) reduces withholding tax rates on bank transactions, vehicle registration, property purchases, and other transactions. File your annual return by September 30 to maintain filer status.
Register on the FBR Iris portal (iris.fbr.gov.pk) with your CNIC. Collect your employer's Form 16 or salary certificate, bank statements, and proof of deductions. File your income and wealth statement online before September 30 each year. First-time filers may need to visit an FBR office to activate their NTN.
Free FBR income tax calculator. Based on 2025-26 salaried tax slabs.
Calculate My Tax Free →