Pakistan Income Tax Calculator

About the Pakistan Income Tax Calculator

Enter your taxable salary — for the month or the year — and any other income taxed at the normal rates, such as business profit or rent, and see the income tax for the Pakistani tax year (July to June): the tax in each slab of the First Schedule to the Income Tax Ordinance, 2001, the section 4AB surcharge where it applies, your effective and marginal rates, and the tax your employer deducts each month.

The calculator decides which table applies the way the Ordinance does — the salaried rates when salary is more than 75% of your taxable income, the rates for other individuals and associations of persons otherwise — and shows the same income under the other tax year it holds, so you can see what the latest Finance Act changed. Nothing you type leaves your browser.

Without a pass, the free preview shows the income tax for the year in full, with the rates that apply and the first rows of the slab table; a Pro pass unlocks every figure, the monthly deduction, the comparison with the other tax year, the summary to copy and the CSV.

Which table applies to you

Division I of Part I of the First Schedule has two tables for individuals (Income Tax Ordinance, 2001):

• Clause (2), salaried individuals: where your income chargeable under the head “Salary” is more than 75% of your taxable income. The table then applies to your whole taxable income, salary and other income together.
• Clause (1), everyone else: individuals whose salary is 75% of their taxable income or less (or who have none) and associations of persons. A professional firm that the law or its regulator bars from incorporating pays 40% instead of 45% on the top slab.

Some income has rates of its own instead — dividends, profit on debt taxed under section 7B, and capital gains on securities (section 37A) and on property — and is not part of the taxable income these tables apply to.

The salaried slabs and what changed

The Finance Act, 2026 replaced the salaried table for tax year 2027: up to Rs 600,000 nil; to Rs 1,200,000, 1% of the amount above Rs 600,000; to Rs 2,200,000, Rs 6,000 + 11%; to Rs 3,200,000, Rs 116,000 + 20%; to Rs 4,100,000, Rs 316,000 + 25%; to Rs 5,600,000, Rs 541,000 + 29%; to Rs 7,000,000, Rs 976,000 + 32%; above that, Rs 1,424,000 + 35%. In tax year 2026 the rates above Rs 2,200,000 were 23%, 30% and 35% (from Rs 4,100,000), and FBR explains the change in Circular No. 02 of 2026-27.

The table for other individuals and associations of persons did not change: nil to Rs 600,000; 15% to Rs 1,200,000; Rs 90,000 + 20% to Rs 1,600,000; Rs 170,000 + 30% to Rs 3,200,000; Rs 650,000 + 40% to Rs 5,600,000; Rs 1,610,000 + 45% above.

Surcharge

Section 4AB adds a surcharge of 10% of the Division I tax for individuals and associations of persons whose taxable income exceeds Rs 10 million. For an individual deriving income chargeable under the head “Salary”, the proviso set 9% for tax year 2026 and, after the Finance Act, 2026, no surcharge at all. The surcharge applies to the whole tax once income is above Rs 10 million, so crossing the line by one rupee adds 10% of the tax.

FBR’s Circular No. 02 of 2026-27 explains the change as relief for salaried individuals, with the 10% continuing for other individuals. The calculator follows it: the salaried rule applies when your salary is more than 75% of your taxable income, the same test as the rates. When your salary is a smaller share, it charges 10% and shows in a note what the proviso would give if it is applied to you because you also have salary income.

Tax deducted from your salary

Under section 149 your employer deducts tax from each payment of salary at your average rate of tax on the salary it estimates for the tax year, including the surcharge, after allowing for tax withheld under other heads and the credits under sections 61 and 63 for which you give evidence. For a steady salary that is the year’s tax divided by 12. Your employer only sees the salary it pays, so tax on other income — and the difference a second employer or a mid-year raise makes — is settled through advance tax and your return.

Limitations

• For individuals and associations of persons taxed at the Division I rates. Companies and income under final or separate tax regimes are not covered.
• Enter taxable amounts: exempt allowances, deductible allowances and tax credits (for example for donations, pension fund contributions or Zakat) are not worked out for you.
• Super tax under section 4C on income above Rs 150 million is not included.
• Pension from a former employer is taxed on its own as a final tax (section 12(2A)): nothing on the first Rs 10 million of the year, 5% of the part above and none from the age of 70. Leave it out of your salary here, unless you still work for the former employer or its associate: then the pension is taxed at the normal rates, so include it.
• The monthly deduction assumes the same salary every month of the tax year.
• Holds tax years 2026 and 2027; the rates change with each year’s Finance Act.

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