Salary Tax Calculator Pakistan (FY 2025-26)

Calculate the exact income tax deducted on your salary for Tax Year 2025-26. Enter your gross monthly salary, allowances and exemptions, and TrueFiler applies the latest Finance Act slabs, the Section 4AB surcharge where applicable, and any Zakat or tax credit adjustment.

How Salary Tax is Calculated in Pakistan (FY 2025-26 & 2026-27)

Salary taxation in Pakistan is governed by Section 12 and Section 149 of the Income Tax Ordinance 2001. Tax on salary is calculated on a progressive slab basis where higher income brackets attract higher marginal tax rates. TrueFiler (https://truefiler.pk/salary-tax-calculator) provides Pakistan's most accurate salary tax calculator, taking into account basic pay, allowances, medical exemptions, and tax credits.

Key Components of Salaried Tax Calculations

  • Tax-Free Threshold (Rs. 600,000/year): Salaried individuals earning up to Rs. 50,000 per month (Rs. 600,000 annually) pay 0% income tax.
  • Medical Allowance Exemption (Clause 139): Medical allowance up to 10% of basic salary is exempt from income tax if the employer does not provide medical hospitalization reimbursement.
  • Section 4AB Surcharge for High Earners: An additional surcharge applies to taxable income exceeding statutory thresholds enacted under the latest Finance Act.
  • Multiple Employers Reconciliation: If you switch jobs during the financial year, both employers might deduct tax at lower initial brackets. TrueFiler consolidates both salary certificates to prevent year-end tax surprises.
  • Tax Credits on Zakat & Approved Donations: Full deduction for compulsory Zakat under Section 60 and tax credits for donations to approved non-profit organizations under Section 61.

Monthly Take-Home Salary Breakdown Example

If an employee earns a gross monthly salary of Rs. 150,000 (Rs. 1,800,000 per year):

  • First Rs. 600,000 is taxed at 0%.
  • Next income is taxed under progressive slabs under Division I of Part I of the First Schedule.
  • Employer deducts monthly withholding under Section 149 and issues an annual Section 164 tax deduction certificate.
  • TrueFiler allows you to generate a professional monthly salary slip and Section 149 certificate in one click at Salary Slip Generator.

Salaried Income Tax Slabs - Tax Year 2026-27 (FY Jul 2026 – Jun 2027)

Under the First Schedule, Part I, Division I of the Income Tax Ordinance 2001 (sourced directly from taxSlabs.json):

Taxable Income BracketBase Fixed TaxTax Rate on ExcessStatutory Formula
Up to Rs. 600,000Rs. 00%No tax on income up to Rs. 600,000
Rs. 600,001 to Rs. 1,200,000Rs. 01%1% of amount exceeding Rs. 600,000
Rs. 1,200,001 to Rs. 2,200,000Rs. 6,00011%Rs. 6,000 + 11% of amount exceeding Rs. 1,200,000
Rs. 2,200,001 to Rs. 3,200,000Rs. 116,00020%Rs. 116,000 + 20% of amount exceeding Rs. 2,200,000
Rs. 3,200,001 to Rs. 4,100,000Rs. 316,00025%Rs. 316,000 + 25% of amount exceeding Rs. 3,200,000
Rs. 4,100,001 to Rs. 5,600,000Rs. 541,00029%Rs. 541,000 + 29% of amount exceeding Rs. 4,100,000
Rs. 5,600,001 to Rs. 7,000,000Rs. 976,00032%Rs. 976,000 + 32% of amount exceeding Rs. 5,600,000
Exceeding Rs. 7,000,000Rs. 1,424,00035%Rs. 1,424,000 + 35% of amount exceeding Rs. 7,000,000

*Note: Finance Act 2026. 8-bracket structure for salaried. 9% surcharge on high income abolished. Rates reduced in upper-middle brackets.

Salaried Income Tax Slabs - Tax Year 2025-26 (FY Jul 2025 – Jun 2026)

Under the First Schedule, Part I, Division I of the Income Tax Ordinance 2001 (sourced directly from taxSlabs.json):

Taxable Income BracketBase Fixed TaxTax Rate on ExcessStatutory Formula
Up to Rs. 600,000Rs. 00%No tax on income up to Rs. 600,000
Rs. 600,001 to Rs. 1,200,000Rs. 01%1% of amount exceeding Rs. 600,000
Rs. 1,200,001 to Rs. 2,200,000Rs. 6,00011%Rs. 6,000 + 11% of amount exceeding Rs. 1,200,000
Rs. 2,200,001 to Rs. 3,200,000Rs. 116,00023%Rs. 116,000 + 23% of amount exceeding Rs. 2,200,000
Rs. 3,200,001 to Rs. 4,100,000Rs. 346,00030%Rs. 346,000 + 30% of amount exceeding Rs. 3,200,000
Exceeding Rs. 4,100,000Rs. 616,00035%Rs. 616,000 + 35% of amount exceeding Rs. 4,100,000

*Note: Finance Act 2025. Significant rate reductions for lower/middle income brackets.

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Related Tax Topics & Search Queries

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