What is the income tax rate in Pakistan 2025-26?

For salaried persons under Finance Act 2025, annual income up to PKR 600,000 is tax-free. Above that, the marginal rates are 1% (PKR 600,001–1,200,000), 11% (PKR 1,200,001–2,200,000), 23% (PKR 2,200,001–3,200,000), 30% (PKR 3,200,001–4,100,000), and 35% above PKR 4,100,000. A 10% surcharge is added to the slab tax if annual taxable income exceeds PKR 10,000,000.

How much salary is tax free in Pakistan?

Monthly salary up to PKR 50,000 (annual PKR 600,000) is completely tax-free in Pakistan for salaried employees under FBR Tax Year 2025-26.

How to calculate income tax on salary in Pakistan?

Multiply your monthly salary by 12 to get your annual taxable income, subtract any allowable exemptions (such as the medical-allowance exemption), then apply the FBR slab rates to each band above PKR 600,000. Our calculator does this step-by-step and shows every band.

Is there a 10% surcharge on income tax above PKR 10 million?

Yes. Finance Act 2025 introduced a 10% surcharge on the computed slab tax for individuals and AOPs whose annual taxable income exceeds PKR 10,000,000. The surcharge is 10% of the slab tax (not 10% of income). It does not apply to companies.

Is freelancer income taxable in Pakistan?

Yes. Freelancers earning above PKR 600,000 annually must file returns with FBR via IRIS. IT export income registered with PSEB is taxed at a reduced rate (currently 0.25%) under separate provisions; talk to a tax practitioner about Section 236C remittance credits.

Do non-salaried and business income use different slabs?

Yes. Non-salaried individuals, AOPs and businesses follow a separate, steeper schedule under Finance Act 2025. Our calculator switches to that schedule when you pick Non-Salaried / AOP.

What is the deadline to file my income tax return?

For Tax Year 2025-26, the return-filing deadline is 30 September 2026 for salaried persons. AOPs and businesses typically file by 31 December. Late filing attracts penalties under section 182 of the Income Tax Ordinance, 2001.

Pakistan Income Tax Calculator 2026 (Historical)

Understanding your income tax liability in Pakistan can be complicated. Our calculator uses the official Federal Board of Revenue (FBR) tax slabs for Tax Year 2026 (Finance Act 2025). This is a historical/reference calculator as the current tax year is TY 2027.

JavaScript is required to run the calculator. Please enable JavaScript to use the full PakCalc tool.

PakCalc — Free Financial Calculators for Pakistan (Updated 2026)