Pakistan's salary income tax for 2026 follows a progressive slab structure — no tax below Rs. 600,000 annual salary, rising to 35% on income above Rs. 6,000,000 — with only the portion in each bracket taxed at that bracket's rate.
2026 Salary Income Tax Slabs
| Annual Salary Range | Tax Calculation |
|---|---|
| Up to Rs. 600,000 | 0% — fully exempt from income tax |
| Rs. 600,001 to 1,200,000 | 5% on the amount above Rs. 600,000 |
| Rs. 1,200,001 to 2,400,000 | Rs. 30,000 plus 15% on the amount above Rs. 1,200,000 |
| Rs. 2,400,001 to 3,600,000 | Rs. 210,000 plus 25% on the amount above Rs. 2,400,000 |
| Rs. 3,600,001 to 6,000,000 | Rs. 510,000 plus 30% on the amount above Rs. 3,600,000 |
| Above Rs. 6,000,000 | Rs. 1,230,000 plus 35% on the amount above Rs. 6,000,000 |
Verify current year slabs at fbr.gov.pk — revised annually in the Finance Act effective from July 1.
How Employers Calculate Monthly Deduction
Your employer calculates your projected annual salary tax and divides it by 12 — this monthly amount appears on your payslip as Income Tax. Mid-year salary increases trigger a recalculation for the remaining months. At year end, you file your own return on IRIS to reconcile actual versus deducted tax — if too much was deducted, the return shows a refundable amount; if too little, the shortfall is collected.
Allowable Deductions That Reduce Taxable Salary
Pakistan tax law allows several deductions that reduce your taxable income before applying the slab rates: Zakat paid to government-approved collection points is fully deductible; donations to FBR-approved charitable organisations are deductible up to 30% of taxable income; and employer contributions to approved provident funds are exempt from tax. Senior citizens aged 60 and above receive a 50% rebate on their tax liability. Check fbr.gov.pk for the current complete list.
Calculate Your Own Tax Estimate
To estimate your tax before filing: sum all annual gross salary including bonuses; deduct any exempt allowances listed on fbr.gov.pk; apply the slab rates to the resulting taxable amount; subtract any applicable rebates. Or use our Income Tax Calculator which applies the current year slabs automatically when you enter your monthly salary.
FBR and Filing Problems
File your IRIS return with the correct income and deduction figures. If excess was deducted, the return will show a refundable amount — see our Tax Refund guide for the steps to claim it.
Pakistan's tax is progressive — only the income within each bracket is taxed at that bracket's rate. A bonus increases total annual income and may push some portion into a higher bracket, but only that specific portion is taxed at the higher rate.
Frequently Asked Questions
No — bonuses are included in total annual salary income and taxed under the same progressive slab structure as regular salary. A large bonus in one year can push a portion of total income into a higher bracket for that year.
No — male and female salaried employees are taxed under the same progressive slab structure in Pakistan's Income Tax Ordinance. There's no gender differential in income tax rates.
Employers calculate projected annual tax divided by 12 months — but they also account for the specific combination of exempt allowances (medical, conveyance, house rent allowance) your contract includes. Different employers apply different allowance structures, and some allowances are partially or fully tax-exempt. The employer's figure may be more accurate for your specific package than a generic slab calculator.
Individuals aged 60 and above receive a 50% rebate on their total income tax liability. This is substantial — a person with Rs. 2,000,000 taxable income normally pays Rs. 210,000 in tax; with the senior citizen rebate, they pay Rs. 105,000. Claim it by entering your age correctly in the personal information section of your IRIS return — it applies automatically.
Bonuses are added to your total annual salary and taxed under the same progressive slab structure — they aren't separately taxed at a higher rate. However, a large year-end bonus can push a portion of your total annual income into a higher bracket for that year. If your employer deducts the bonus tax as a separate calculation at a flat high rate, that's an over-withholding that you can recover through your annual return.