Pakistan Income Tax Calculator 2025-26
Enter your monthly salary and instantly see your annual income tax, monthly withholding, net take-home pay, and effective tax rate.
Slabs per Finance Act; verified October 2026. Applies where salary exceeds 75% of taxable income.
How to use this calculator
What is the Pakistan income tax calculator?
Pakistan taxes salaried income on a progressive slab system: higher portions of your income are taxed at higher rates, from 0% at the bottom to 35% at the top. The Finance Act sets these slabs per tax year, and this calculator implements both the 2025-26 and the newly announced 2026-27 schedules. Enter one number — your monthly salary — and it annualizes it, walks it through every slab, and shows the tax your employer should be withholding each month.
The 2025-26 salary slabs, explained
For tax year 2025-26 the slabs run: up to Rs 600,000 — no tax; Rs 600,001 to 1.2 million — 1% of the amount above 600,000; Rs 1.2 to 2.2 million — Rs 6,000 plus 11% above 1.2 million; Rs 2.2 to 3.2 million — Rs 116,000 plus 23% above 2.2 million; Rs 3.2 to 4.1 million — Rs 346,000 plus 30% above 3.2 million; and above Rs 4.1 million — Rs 616,000 plus 35%. So a Rs 3 million annual salary (Rs 250,000/month) pays Rs 116,000 + 23% of Rs 800,000 = Rs 300,000 a year — an effective rate of just 10%, not 23%.
What changed in the 2026-27 slabs
The 2026-27 schedule widens the top end and trims two mid-tier rates. The Rs 2.2–3.2 million band drops from 23% to 20%, and the Rs 3.2–4.1 million band drops from 30% to 25%. Above that, new brackets appear: Rs 4.1–5.6 million at 29% (Rs 541,000 + 29% above 4.1M), Rs 5.6–7 million at 32% (Rs 976,000 + 32% above 5.6M), and above Rs 7 million at 35% (Rs 1,424,000 + 35% above 7M). Toggle the tax-year switch on the calculator to see exactly how much the new rates save you — mid-to-high earners see the biggest difference.
Marginal rate vs. effective rate
The most common misunderstanding: your "slab" is not your tax rate. Only the income inside each band is taxed at that band's percentage. If you earn Rs 2.5 million a year, the 23% applies only to the Rs 300,000 above 2.2 million — the rest is taxed at the lower bands, and the first Rs 600,000 isn't taxed at all. Your effective rate (total tax / total income) is always lower than your top marginal rate, and the calculator shows both so you can see the real picture.
Tips for salaried taxpayers
Check your payslip's withholding against this calculator's monthly figure — payroll systems get updated late after Finance Act changes, and errors are common. Keep records of any tax-deductible items your employer recognizes, and remember this tool covers the salary slabs only; rental, business, or capital-gains income follows different schedules. For related obligations, see our Zakat calculator for Pakistan and the UAE gratuity calculator.