How income tax on salary works in Pakistan
If you earn a salary in Pakistan, your employer deducts income tax every month before paying you. The amount is set by the Federal Board of Revenue (FBR) using a progressive slab system: income up to a threshold is exempt, and the portions above are taxed at increasing rates. Because the system is progressive, only the income that falls inside a higher slab is taxed at that slab's rate — not your entire salary.
Each slab is written as a fixed amount plus a marginal rate. For FY 2026-27, the slab for income between Rs 1,200,000 and Rs 2,200,000 is “Rs 6,000 + 11% of the amount exceeding Rs 1,200,000”. So if you earn Rs 1,500,000 a year, your tax is Rs 6,000 + 11% × (1,500,000 − 1,200,000) = Rs 6,000 + Rs 33,000 = Rs 39,000 for the year, or Rs 3,250 deducted each month.
Worked example
Suppose your monthly salary is Rs 150,000 — that is Rs 1,800,000 a year. Enter 150,000 in the calculator above with “Monthly” selected. The tool converts it to an annual figure, finds the slab your income falls into, and shows your monthly tax, your monthly take-home pay, and your effective tax rate (total tax ÷ total income). Here that is Rs 6,000 + 11% × 600,000 = Rs 72,000 a year — Rs 6,000 a month, an effective rate of 4%, leaving Rs 144,000 take-home each month. Click “Get full breakdown” to see how the tax builds up slab by slab.
Want to compare several salaries at once? The salary tax table lists the monthly tax and take-home pay for common salaries from Rs 50,000 to Rs 10 lakh.
Why the “last updated” date matters
Tax slabs are revised every year through the Finance Act, which accompanies the federal budget in June and takes effect on 1 July. An out-of-date calculator will quietly give you the wrong number for the whole year. The badge on the calculator shows exactly when these rates were last checked, and the underlying figures are sourced from Finance Act 2026 — Tax Year 2027 salaried slabs (Division I, Part I, First Schedule).
What this includes & its limits
- Covers salaried individuals on the FBR normal salary slabs, using gross annual salary.
- Does not include allowances/exemptions, tax credits or rebates, or business/non-salaried income.
- A quick estimate — for filing, verify against the Finance Act or a tax advisor.
Frequently asked questions
This calculator is for general guidance only and does not constitute tax advice. Always verify against the current Finance Act or consult a qualified tax advisor.