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Pakistan Salary & Income Tax Calculator 2026-27
Enter your salary and instantly estimate your monthly and annual salary tax using the latest FBR slab rates.
Finance Act 2026
Rs. 600,000 / year
35%
45%
Abolished
10.00% (> Rs. 10M)
Reviewed by Muhammad Awais Rashid, ACMA — 8 years in finance, accounting & tax. Last verified: August 2026
Salaried Tax Examples — FY 2026-27
Estimated tax at common salary levels for salaried individuals (no Zakat deduction applied)
| Monthly Salary | Annual Income | Annual Tax | Monthly Tax | Effective Rate |
|---|---|---|---|---|
| Rs. 50,000 | Rs. 600,000 | Rs. 0 | Rs. 0 | 0.0% |
| Rs. 75,000 | Rs. 900,000 | Rs. 3,000 | Rs. 250 | 0.3% |
| Rs. 100,000 | Rs. 1,200,000 | Rs. 6,000 | Rs. 500 | 0.5% |
| Rs. 150,000 | Rs. 1,800,000 | Rs. 72,000 | Rs. 6,000 | 4.0% |
| Rs. 200,000 | Rs. 2,400,000 | Rs. 156,000 | Rs. 13,000 | 6.5% |
| Rs. 300,000 | Rs. 3,600,000 | Rs. 416,000 | Rs. 34,667 | 11.6% |
| Rs. 500,000 | Rs. 6,000,000 | Rs. 1,104,000 | Rs. 92,000 | 18.4% |
Business / Non-Salaried Tax Examples — FY 2026-27
Estimated tax at common income levels for business / non-salaried individuals (net taxable profit, no Zakat deduction)
| Monthly Income | Annual Income | Annual Tax | Monthly Tax | Effective Rate |
|---|---|---|---|---|
| Rs. 50,000 | Rs. 600,000 | Rs. 0 | Rs. 0 | 0.0% |
| Rs. 75,000 | Rs. 900,000 | Rs. 45,000 | Rs. 3,750 | 5.0% |
| Rs. 100,000 | Rs. 1,200,000 | Rs. 90,000 | Rs. 7,500 | 7.5% |
| Rs. 150,000 | Rs. 1,800,000 | Rs. 230,000 | Rs. 19,167 | 12.8% |
| Rs. 200,000 | Rs. 2,400,000 | Rs. 410,000 | Rs. 34,167 | 17.1% |
| Rs. 300,000 | Rs. 3,600,000 | Rs. 810,000 | Rs. 67,500 | 22.5% |
| Rs. 500,000 | Rs. 6,000,000 | Rs. 1,790,000 | Rs. 149,167 | 29.8% |
Tax Slab Table — FY 2026-27
Salaried Individuals (Finance Act 2026)
| Annual Income | Rate | Tax Formula |
|---|---|---|
| Rs. 0 – 600000 | 0.00% | Nil |
| Rs. 600000 – 1200000 | 1.00% | 1.00% of excess over Rs. 600000 |
| Rs. 1200000 – 2200000 | 11.00% | Rs. 6000 + 11.00% of excess over Rs. 1200000 |
| Rs. 2200000 – 3200000 | 20.00% | Rs. 116000 + 20.00% of excess over Rs. 2200000 |
| Rs. 3200000 – 4100000 | 25.00% | Rs. 316000 + 25.00% of excess over Rs. 3200000 |
| Rs. 4100000 – 5600000 | 29.00% | Rs. 541000 + 29.00% of excess over Rs. 4100000 |
| Rs. 5600000 – 7000000 | 32.00% | Rs. 976000 + 32.00% of excess over Rs. 5600000 |
| Above Rs. 7000000 | 35.00% | Rs. 1424000 + 35.00% of excess over Rs. 7000000 |
Business / Non-Salaried Individuals (Finance Act 2026)
Note: A 10.00% surcharge on computed tax applies where taxable income exceeds Rs. 10 million.
| Annual Income | Rate | Tax Formula |
|---|---|---|
| Rs. 0 – 600000 | 0.00% | Nil |
| Rs. 600000 – 1200000 | 15.00% | 15.00% of excess over Rs. 600000 |
| Rs. 1200000 – 1600000 | 20.00% | Rs. 90000 + 20.00% of excess over Rs. 1200000 |
| Rs. 1600000 – 3200000 | 30.00% | Rs. 170000 + 30.00% of excess over Rs. 1600000 |
| Rs. 3200000 – 5600000 | 40.00% | Rs. 650000 + 40.00% of excess over Rs. 3200000 |
| Above Rs. 5600000 | 45.00% | Rs. 1610000 + 45.00% of excess over Rs. 5600000 |
What qualifies as a "salaried individual"?
Under FBR rules, you qualify as a salaried individual if more than 75% of your total taxable income comes from salary — wages, allowances, bonuses, and employer-provided benefits. The salaried slab table (with lower rates) then applies to your entire income.
Do filers and non-filers pay different slab rates?
No. Income tax slab rates are identical for filers and non-filers. The difference is in withholding tax rates on transactions — property, bank withdrawals, vehicle transfers, and dividends. Non-filers pay roughly double the withholding tax compared to active filers on the FBR Active Taxpayer List (ATL).
How is Zakat treated for tax purposes?
Zakat paid under the Zakat and Ushr Ordinance 1980 is a deductible allowance under Section 60 of the Income Tax Ordinance 2001. It reduces your taxable income before slab rates are applied — meaning it can move you into a lower bracket. It is not a tax credit and is not subtracted from your final tax bill.
What is the Section 4AB surcharge?
The Finance Act 2024 introduced Section 4AB, imposing a surcharge on computed income tax where taxable income exceeds Rs. 10 million. For FY 2024-25 it was 10%, FY 2025-26 reduced it to 9%, and from FY 2026-27 it has been abolished entirely for salaried individuals.
How is business / non-salaried income taxed?
Business individuals and freelancers are taxed under the non-salaried slab table (Division II, Part I, First Schedule) with significantly higher rates — top rate 45% vs 35% for salaried. Tax is computed on net taxable profit: gross income minus admissible expenses under Sections 20–38. The 10% surcharge on income above Rs. 10 million still applies to non-salaried taxpayers even in FY 2026-27.
What expenses can business taxpayers deduct?
Admissible deductions under Sections 20–38 include business rent, employee salaries, utilities, depreciation on business assets, repairs, business travel, bad debts, and professional fees. Personal expenses, capital expenditure, fines, entertainment beyond prescribed limits, and undocumented transactions are not deductible.
How is monthly tax calculated from salary?
Your monthly salary is multiplied by 12 to get annual income. Tax is computed on the annual amount using the FBR slab table. The annual tax is then divided by 12 to arrive at the monthly deduction that your employer withholds under Section 149.
Is this calculator free and private?
Yes, completely free with no login required. Your inputs are sent to our server to compute the result but nothing is stored, saved, or shared — the data is discarded as soon as your results are displayed.
How Does Income Tax Work for Salaried Individuals in Pakistan?
Pakistan taxes salaried individuals under a progressive slab system defined in the Income Tax Ordinance 2001. Your income is split into brackets, and each bracket is taxed at its own rate. Annual income up to Rs. 600,000 is completely exempt.
Under FBR rules, you qualify as a "salaried individual" if more than 75% of your total taxable income comes from salary — wages, allowances, bonuses, and benefits paid by an employer. Salaried individuals are taxed on a separate, generally lower slab table (top rate 35%) than business individuals (top rate 45%), and tax is deducted at source by the employer each month under Section 149.
Business individuals and freelancers providing local services fall under the non-salaried slab table. These rates are significantly higher — starting at 15% for the second bracket versus just 1% for salaried, and reaching a maximum of 45% above Rs. 5.6 million. To use the calculator for business income, enter your net taxable profit after deducting allowable expenses under Sections 20–38 of the Ordinance.
How to Calculate Your Business Taxable Income
This calculator expects your net taxable profit — the figure after you (or your accountant) have subtracted all allowable deductions from gross receipts. Here's how to arrive at that number:
Step 1: Gross Business Income
Total business receipts for the year — sales revenue, service fees, commissions, rental income from business property, and any other business income.
Step 2: Subtract Admissible Expenses (Sections 20–38)
Admissible: Rent for business premises, employee salaries and benefits, utilities (business use), depreciation on business assets (Section 22–23), repairs and maintenance, business travel, bad debts written off (Section 29), professional fees (legal, accounting), advertising expenses, insurance premiums.
Non-admissible: Personal or household expenses, capital expenditure (land, buildings — these are depreciated instead), fines and penalties, entertainment expenses beyond prescribed limits, undocumented transactions, cash payments exceeding Rs. 50,000 to a single party (Section 21(l)).
Step 3: Net Taxable Profit
Gross income − admissible expenses = net taxable profit. Enter this figure in the calculator above and select "Business / Non-Salaried Individual" to see your tax computed under the non-salaried slab table.
Example
Annual sales: Rs. 50 lakh. Admissible expenses: Rs. 30 lakh (rent Rs. 6 lakh, salaries Rs. 15 lakh, utilities Rs. 3 lakh, depreciation Rs. 2 lakh, other Rs. 4 lakh). Net taxable profit: Rs. 20 lakh. Enter Rs. 2,000,000 as annual income in the calculator with "Business" selected — the non-salaried slabs will apply automatically.
Zakat Treatment for Business Income
Section 60 applies equally to both salaried and business taxpayers. Zakat paid under the Zakat and Ushr Ordinance 1980 reduces your taxable income before slab rates apply — regardless of whether your income is from salary or business. Enter the amount in the Zakat field and it will be deducted from your net taxable profit before the tax calculation runs.