KNOWLEDGE / TAX & EMPLOYMENT

Salary & income tax
calculator.

Calculate tax on salary or ordinary taxable individual income in Pakistan. See monthly withholding equivalents, take-home pay and a progressive tax breakdown.

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Tax Year 2027 · 1 July 2026 – 30 June 2027

01 / Income

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INCOME TAX IN PAKISTAN

How Pakistan salary income tax is calculated

The income tax calculation is progressive. Each tax rate applies to the taxable income within its band; moving into a higher bracket does not subject the entire income to the higher rate. The calculator displays the applicable tax year for Pakistan's July–June tax period.

Salary tax slabs for Tax Year 2027 (2026–27)

Annual taxable salary bandRate on excessTax at start of band
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What is the salary tax-free limit?

Under the ordinary salaried table, the first Rs. 600,000 of annual taxable income is taxed at zero percent for Tax Year 2027. That corresponds to Rs. 50,000 monthly salary for twelve equal months. Employer deductions under section 149 depend on annualised taxable salary, not solely on a single month's gross payslip.

How much tax on Rs. 150,000 salary a month?

At a constant taxable salary of Rs. 150,000 monthly, annual taxable salary is Rs. 1,800,000. The calculator uses the applicable bands to show the tax and the after-tax salary. Employer deductions, relief and adjustments beyond the listed tax rates are excluded.

Income tax on business and professional income

Non-salaried individual income is subject to a different progressive schedule. Enter annual taxable profit after allowable deductions, not business turnover. Certain sectors and classes of payments are subject to final, minimum or separate withholding rules, and do not necessarily follow these general tax bands. Section 4AB imposes an additional surcharge where ordinary individual taxable income exceeds Rs. 10 million, but salaried individuals are excluded from that surcharge under the 2026 amendment.

Statutory references

Income Tax Ordinance, 2001, amended through 30 June 2026 — First Schedule, Part I, Division I, and section 4AB. FBR withholding income tax rate card, Tax Year 2027 — section 149. In a conflict, the enacted law governs.

Frequently asked questions

Do salaried and self-employed individuals pay the same rates?

No. The law contains different slab schedules for qualifying salaried individuals and other individuals. This calculator offers separate modes.

Is the monthly withholding amount exact?

It is one-twelfth of the estimated annual tax under the entered assumptions. Payroll deductions may vary if income, employment, or allowable adjustments change.

Can the calculator submit my tax return?

No. It is a standalone tax estimator and does not connect to IRIS or submit returns.

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