Pakistan Income Tax Calculator
Finance Bill 2026 · FY July 2026 – June 2027 · FBR progressive slabs
Income
What you earn before any deductions
Your total monthly pay before any deductions
One-time bonus, commission, or any other annual income
Deductions
These reduce your taxable income and lower your tax
Medical allowance included in salary?
If your salary package includes a medical component, it's exempt up to 10% of basic salary or PKR 25,000/year — whichever is lower.
Fully deducted from taxable income — no upper limit applies
How your tax is calculated
Step-by-step breakdown of every number
Monthly salary × 12
Rs 100,000 × 12
= Gross annual income
= Taxable income
Progressive FBR slabs applied on this amount
Slab tax (1% marginal slab)
Fixed: Rs 0 + (taxable − Rs 600,000) × 1%
= Annual tax payable
Annual Tax Payable
Rs 6,000
Effective rate: 0.50% of gross income
Monthly Tax
Rs 500
deducted by employer
Monthly Salary
Rs 99,500
per month after tax
Marginal Slab
1%
on income above Rs 600,000
Annual Income
Rs 1,200,000
after all deductions
Salaried tax slabs — your position
Highlighted = your income falls in this slab range · Darker outline = your marginal slab
Tax formula: Fixed component + (taxable income − slab floor) × slab rate
Need to file? We can help.
Pakistan income tax slabs 2026-27 — complete guide
| Annual income (PKR) | Rate | Fixed |
|---|---|---|
| 0 – 600,000 | 0% | Rs 0 |
| 600,000 – 1,200,000 | 1% | Rs 0 |
| 1,200,000 – 2,200,000 | 11% | Rs 6,000 |
| 2,200,000 – 3,200,000 | 20% | Rs 116,000 |
| 3,200,000 – 4,100,000 | 25% | Rs 316,000 |
| 4,100,000 – 5,600,000 | 29% | Rs 541,000 |
| 5,600,000 – 7,000,000 | 32% | Rs 976,000 |
| 7,000,000 – above | 35% | Rs 1,424,000 |
The 9% high-income surcharge has been abolished for salaried individuals from Tax Year 2027 (it still applies to non-salaried/business income above PKR 10 million).
How is income tax calculated in Pakistan?
Pakistan uses a progressive slab system. Your taxable income is first determined by subtracting allowable deductions (medical allowance exemption, zakat / charitable donations) from gross annual income. Then the applicable slab‘s formula is used: Tax = Fixed Component + (Taxable Income − Slab Floor) × Slab Rate. Only the income within each slab bandis taxed at that band's rate — not the entire income. The 9% surcharge on incomes above PKR 10 million has been abolished for salaried individuals from Tax Year 2027; it still applies to non-salaried/business income.
What is the FBR tax return deadline for 2027?
The expected deadline for Tax Year 2027 is September 30, 2027. Filing on time keeps your Active Taxpayer List (ATL) status intact, which means lower withholding rates on banking, property, and investment transactions. Late filers face penalties and higher WHT deductions throughout the year.
What are the benefits of being a tax filer?
ATL filers pay significantly lower withholding tax on property purchases/sales, cash withdrawals above PKR 50,000/day, bank profit, dividends, and vehicle purchases. Filing also strengthens visa applications, loan eligibility, and business credibility with clients and banks.
What deductions can salaried employees claim?
Common deductions include: medical allowance (up to 10% of basic or PKR 25,000/year), zakat / charitable donations (fully deductible, no cap), provident fund contributions (subject to limits), and education allowance (up to 20% of salary or PKR 50,000/year). This calculator currently handles medical allowance and zakat / charitable donations. Consult a tax advisor for the full picture.
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Akbar Tax Store — certified tax filing assistance
Disclaimer: This calculator provides estimates based on Finance Bill 2026 (FY 2026-27 / Tax Year 2027) tax slabs published by the Federal Board of Revenue (FBR). Results are for guidance purposes only. Your actual tax liability may differ based on specific deductions, exemptions, allowances, and other factors applicable to your individual circumstances. Always consult a certified tax advisor or contact Akbar Tax Store for a personalized assessment.