Every salaried person in Pakistan pays income tax according to a set of slabs, and those slabs changed again under the Finance Act 2025. Knowing which band your salary falls into is the difference between accepting whatever your employer deducts and actually understanding your pay slip.
The good news for most earners is that the rates for lower and middle income brackets came down. The first Rs 600,000 of annual income remains completely tax free, and the band immediately above it is now taxed at just 1%.
This guide sets out the official salary tax slabs for tax year 2026 (financial year 2025-26) exactly as they appear in the Income Tax Ordinance 2001, shows what the tax works out to at common salary levels, and explains the surcharge that applies to high earners.
Quick answer: For tax year 2026 (1 July 2025 to 30 June 2026), salary income up to Rs 600,000 a year is tax free. Income between Rs 600,001 and Rs 1,200,000 is taxed at 1% of the amount above Rs 600,000. Above that the rates rise through 11%, 23% and 30%, reaching a top rate of 35% on income over Rs 4,100,000. A separate 9% surcharge applies to salaried individuals whose taxable income exceeds Rs 10 million. These rates apply where salary is more than half of your total income.
Work out your exact figure with the 2025-26 salary tax calculator below, or let Filing.pk file your return for you.
These are the official rates set out in Division I, Part I of the First Schedule to the Income Tax Ordinance 2001, as substituted by the Finance Act 2025. They apply to an individual whose income under the head “salary” exceeds 50% of their total taxable income.
| S. No. | Annual taxable income | Rate of tax |
|---|---|---|
| 1 | Up to Rs 600,000 | 0% |
| 2 | Rs 600,001 – Rs 1,200,000 | 1% of the amount exceeding Rs 600,000 |
| 3 | Rs 1,200,001 – Rs 2,200,000 | Rs 6,000 + 11% of the amount exceeding Rs 1,200,000 |
| 4 | Rs 2,200,001 – Rs 3,200,000 | Rs 116,000 + 23% of the amount exceeding Rs 2,200,000 |
| 5 | Rs 3,200,001 – Rs 4,100,000 | Rs 346,000 + 30% of the amount exceeding Rs 3,200,000 |
| 6 | Above Rs 4,100,000 | Rs 616,000 + 35% of the amount exceeding Rs 4,100,000 |
Source: Income Tax Ordinance 2001, First Schedule, Part I, Division I, as substituted by the Finance Act 2025.
Enter your salary below to see your tax for tax year 2026. The calculator applies the slab rates in the table above, plus the 9% surcharge where taxable income exceeds Rs 10 million.
Enter your gross taxable salary before tax is deducted.
This calculator uses the tax year 2026 (1 July 2025 to 30 June 2026) salaried slab rates. It is an estimate based on gross salary only and does not account for tax credits, allowances or other income.
The table below shows the annual and monthly tax at common salary levels, assuming your whole taxable income is salary and you claim no additional tax credits.
| Monthly salary | Annual salary | Annual tax | Monthly tax | Effective rate |
|---|---|---|---|---|
| Rs 50,000 | Rs 600,000 | Rs 0 | Rs 0 | 0% |
| Rs 75,000 | Rs 900,000 | Rs 3,000 | Rs 250 | 0.33% |
| Rs 100,000 | Rs 1,200,000 | Rs 6,000 | Rs 500 | 0.50% |
| Rs 150,000 | Rs 1,800,000 | Rs 72,000 | Rs 6,000 | 4.00% |
| Rs 200,000 | Rs 2,400,000 | Rs 162,000 | Rs 13,500 | 6.75% |
| Rs 250,000 | Rs 3,000,000 | Rs 300,000 | Rs 25,000 | 10.00% |
| Rs 300,000 | Rs 3,600,000 | Rs 466,000 | Rs 38,833 | 12.94% |
| Rs 400,000 | Rs 4,800,000 | Rs 861,000 | Rs 71,750 | 17.94% |
| Rs 500,000 | Rs 6,000,000 | Rs 1,281,000 | Rs 106,750 | 21.35% |
Notice how the effective rate is always lower than the slab rate. That is because Pakistan uses a progressive system: only the portion of your income inside each band is taxed at that band's rate, not your whole salary.
Take someone earning Rs 150,000 a month, which is Rs 1,800,000 a year. That falls into slab 3, so the calculation runs:
The effective rate is 4% of gross salary, even though the top slab touched is 11%.
Under section 4AB of the Income Tax Ordinance, an additional surcharge applies where taxable income exceeds Rs 10 million in a tax year. For salaried individuals, the surcharge is 9% of the income tax payable, reduced from the general rate of 10% that applies to other individuals and associations of persons.
Important: the surcharge is 9% of the tax, not 9% of your income. On a taxable salary of Rs 12,000,000 the tax is Rs 3,381,000, so the surcharge is Rs 304,290 — giving a total of Rs 3,685,290.
The salaried slab table applies where your income under the head “salary” is more than 50% of your total taxable income. If salary is half or less of what you earn, for example because most of your income comes from a business or freelancing, the separate non-salaried rate table applies instead, and those rates are higher at the same income levels.
Pension income is treated differently again. Pension received from a former employer is taxed at 0% up to Rs 10 million, and at 5% on the amount above Rs 10 million.
Your employer deducts tax from your salary each month and deposits it with the FBR, but that deduction is not the same as filing a return. Filing is what puts your name on the Active Taxpayer List (ATL) and makes you a filer, which cuts your withholding tax on banking, property and vehicle transactions. Filing also lets you claim back any tax that was over-deducted during the year, and claim credits on approved investments and donations.
If you are not sure where you stand, you can check your filer status by CNIC in about a minute, or read our full guide on how to file an income tax return.
Applying the slabs is straightforward enough, but a return also needs your wealth statement to reconcile, your withholding credits to be claimed, and the whole thing to be submitted correctly on IRIS before the deadline. Filing.pk handles salaried returns end to end, entirely online, at prices up to 30% below other portals.
Annual salary income up to Rs 600,000, which is Rs 50,000 a month, is completely tax free for tax year 2026. No income tax is payable below this threshold, although you may still choose to file a return to become a filer.
A salary of Rs 100,000 a month is Rs 1,200,000 a year. Tax is charged at 1% on the amount above Rs 600,000, which works out to Rs 6,000 for the year, or Rs 500 a month.
On Rs 150,000 a month, or Rs 1,800,000 a year, the annual tax is Rs 72,000, which is Rs 6,000 a month. That is Rs 6,000 on the first band plus 11% on the Rs 600,000 above Rs 1,200,000.
The top slab rate is 35%, applied to taxable salary income above Rs 4,100,000 a year, plus Rs 616,000 of tax on the income below that threshold. A further 9% surcharge on the tax applies once taxable income exceeds Rs 10 million.
Yes, for lower and middle income earners. The band from Rs 600,001 to Rs 1,200,000 fell from 5% to 1%, and the next band fell from 15% to 11%, with reductions in the bands above that too. The top rate of 35% was unchanged.
On your tax. Where taxable income exceeds Rs 10 million, a salaried individual pays a surcharge of 9% of the income tax already calculated under the slab table, not 9% of the income itself.
Only if salary makes up more than half of your taxable income. If most of your income comes from freelancing or business, the non-salaried individual rate table applies, and those rates are higher at equivalent income levels.
Yes. Monthly deduction by your employer is not the same as filing. Only a filed return puts you on the Active Taxpayer List, which lowers your withholding tax on property, banking and vehicle transactions, and allows you to claim refunds of any excess tax deducted.
Rates in this article are taken from the Income Tax Ordinance 2001 as amended by the Finance Act 2025 and apply to tax year 2026. This is general information, not tax advice. Rates can change with each Finance Act, so please verify on the official FBR site (fbr.gov.pk) or contact us about your own situation.