Pakistan's income tax for salaried employees follows a progressive slab structure — no tax below Rs. 600,000 annual income, rising to 35% on the portion above Rs. 6,000,000. This calculator shows your annual tax liability, effective tax rate, and monthly employer deduction based on 2026 FBR slabs.
How to use: Enter your annual taxable income (your gross annual salary minus any tax-exempt allowances). If you're not sure of your annual figure, enter your monthly salary and multiply by 12. Select Salaried or Business/Non-Salaried — different slab structures apply.
Calculate your income tax liability for Tax Year 2026 based on the latest FBR progressive tax slabs. Verify current rates at fbr.gov.pk.
Salaried tax slabs 2026 (approximate). Doesn't account for deductions (Zakat, donations) or rebates. Verify at fbr.gov.pk for authoritative current slabs.
Understanding Your Tax Result
The annual tax is your total liability before any deductions or rebates. Monthly deduction is what your employer should be withholding each month (annual tax ÷ 12). The effective tax rate is your actual average rate — often significantly lower than the marginal rate because progressive taxation only taxes the income in each bracket at that bracket's rate. If your employer is deducting more than the monthly deduction shown, you'll receive a refund when you file your annual IRIS return.
Frequently Asked Questions
The marginal rate is the rate applied to the top portion of your income — the highest bracket you fall into. The effective rate is your total tax divided by your total income. With progressive slabs, effective rate is always lower than marginal rate. On Rs. 2,000,000 annual salary, your marginal rate is 25% but effective rate is approximately 11%.
The senior citizen rebate (50% reduction in tax for individuals aged 60+) is not applied automatically here. If you qualify, halve the calculated tax amount. Claim this rebate when filing your IRIS return by entering your correct date of birth.
Compare the monthly deduction this calculator shows with what appears on your salary slip as income tax deducted. If your employer deducts significantly more, you'll get a refund when filing your annual return. If they deduct less, you'll owe the balance in September.
Employers should recalculate the annual tax projection each month when salary changes occur. The new monthly deduction = (projected full-year tax — tax already deducted) ÷ remaining months. A salary increase in month 7 means the last 6 months' deductions are higher to cover the full-year liability.
Understanding Your Tax Result
The annual tax is your total liability before any deductions or rebates. Monthly deduction is what your employer should be withholding each month (annual tax ÷ 12). The effective tax rate is your actual average rate — often significantly lower than the marginal rate because progressive taxation only taxes the income in each bracket at that bracket's rate. If your employer is deducting more than the monthly deduction shown, you'll receive a refund when you file your annual IRIS return.
Frequently Asked Questions
The marginal rate is the rate applied to the top portion of your income — the highest bracket you fall into. The effective rate is your total tax divided by your total income. With progressive slabs, effective rate is always lower than marginal rate. On Rs. 2,000,000 annual salary, your marginal rate is 25% but effective rate is approximately 11%.
The senior citizen rebate (50% reduction in tax for individuals aged 60+) is not applied automatically here. If you qualify, halve the calculated tax amount. Claim this rebate when filing your IRIS return by entering your correct date of birth.
Compare the monthly deduction this calculator shows with what appears on your salary slip as income tax deducted. If your employer deducts significantly more, you'll get a refund when filing your annual return. If they deduct less, you'll owe the balance in September.
Employers should recalculate the annual tax projection each month when salary changes occur. The new monthly deduction = (projected full-year tax — tax already deducted) ÷ remaining months. A salary increase in month 7 means the last 6 months' deductions are higher to cover the full-year liability.