Who is a salaried individual?

Under Pakistani tax law, you're a salaried individual if at least 75% of your taxable income comes from salary. That qualification matters because the salaried slabs are noticeably friendlier than the non-salaried ones. So if you do consulting or freelancing on the side, watch that ratio — once your side income crosses 25% of the total, FBR may reclassify you and your tax bill jumps.

What about non-salaried professionals?

Business owners, freelancers, sole proprietors, and consultants fall under the non-salaried slabs, which start the same at PKR 600k but ramp up faster. The reasoning is that non-salaried earners can deduct legitimate business expenses against income, so the headline rates are stiffer to compensate. If you run a side business alongside a day job, structure it carefully — staying on the salaried side of the 75% line is often worth several lakh per year.

What is the tax-free threshold in Pakistan?

PKR 600,000 per year — or PKR 50,000/month — for both salaried and non-salaried individuals under the FY 2024-25 / Tax Year 2025 slabs. Below that, you owe zero income tax. But here's the catch: even if your income is below the threshold, you should still file a nil return to stay on the FBR Active Taxpayer List (ATL). Non-filers face 2-3× withholding tax on everything from bank transfers to mobile bills, which often costs more than the tax itself would have.

Is this calculator based on the latest slabs?

Yes — the Finance Act 2024 (Tax Year 2025) salaried slabs issued by the Federal Board of Revenue (FBR). The top rate now sits at 35% for income above PKR 4.1M annually, which catches Pakistan's senior professionals, doctors, and middle-management squarely. FBR updates the slabs every June in the Federal Budget, so the rates here reflect the current fiscal year. If you're computing past-year returns, check the historical slabs separately.

Does this include tax credits or exemptions?

No, this gives you the base tax estimate on gross income. Your actual liability can be meaningfully lower once you layer in tax credits — investments in approved pension funds (VPS) or mutual funds under Sections 62/63 can shave 5-15% off your bill, donations to approved charities give a credit, medical allowance up to 10% of basic salary is fully exempt, and various other allowances apply depending on your situation. A senior earning PKR 4M can legally save PKR 100,000+ by parking 20% of income in approved schemes before 30 June.

When is income tax filed in Pakistan?

Personal income tax returns are due by 30 September each year — though FBR almost always extends the deadline once or twice. File through the IRIS portal (iris.fbr.gov.pk), which now supports salaried, business, and freelance filers fairly smoothly. Don't leave it until 29 September — server crashes are an annual ritual. File in July or August if you can.

Income Tax Calculator (Pakistan) (2026)

Annual Income (PKR)	Tax Rate	Annual Tax (PKR)	Monthly Tax (PKR)
Up to 600,000	0%	0	0
600,001 – 1,200,000	5% above 600K	Up to 30,000	Up to 2,500
1,200,001 – 2,200,000	15% above 1.2M + 30K	Up to 180,000	Up to 15,000
2,200,001 – 3,200,000	25% above 2.2M + 180K	Up to 430,000	Up to 35,833
3,200,001 – 4,100,000	30% above 3.2M + 430K	Up to 700,000	Up to 58,333
Above 4,100,000	35% above 4.1M + 700K	—	—

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