Salary Tax Calculator & Slabs for Pakistan 2025–26
As part of the Finance Act 2025, Pakistan’s federal government has introduced revised income tax slabs that bring noticeable relief to salaried individuals, especially those in the low- to middle-income brackets. This move aims to promote better tax compliance, reduce monthly salary deductions, and support the financial wellbeing of millions of taxpayers.
If you’re a salaried professional in Pakistan, this guide covers everything you need—from the latest tax slab rates to FAQs and deductions you can legally claim.
AbuJan Tax Calculator Pakistan 2025-2026
FBR Tax Return Calculator
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Salary Tax Slabs for FY 2025–26 (Salaried Individuals)
Here is the updated income tax structure for salaried persons in Pakistan for the fiscal year 2025–2026:
| Annual Taxable Income (PKR) | Applicable Tax Rate |
| Up to Rs. 600,000 | 0% (Fully exempt) |
| Rs. 600,001 – Rs. 1,200,000 | 1% of the amount exceeding Rs. 600,000 |
| Rs. 1,200,001 – Rs. 2,200,000 | Rs. 6,000 + 11% of the amount exceeding Rs. 1,200,000 |
| Rs. 2,200,001 – Rs. 3,200,000 | Rs. 116,000 + 23% of the amount exceeding Rs. 2,200,000 |
| Rs. 3,200,001 – Rs. 4,100,000 | Rs. 346,000 + 30% of the amount exceeding Rs. 3,200,000 |
| Over Rs. 4,100,000 | Rs. 616,000 + 35% of the amount exceeding Rs. 4,100,000 |
Pension Income Tax Rates for FY 2025–26
| Pension Income (PKR) | Tax Rate |
| Up to Rs. 10 million annually | 0% (Tax-free) |
| Over Rs. 10 million annually | 5% of the amount exceeding Rs. 10 million |
How to Calculate Your Income Tax – Step-by-Step
To accurately calculate your income tax for FY 2025–26, follow these 5 steps:
- Determine Total Annual Income:
Include your basic salary, bonuses, allowances, and other benefits. - Subtract Allowable Deductions:
These may include:- Zakat
- Donations to approved charities
- Life insurance premiums
- Medical allowance (if not reimbursed)
- Approved retirement fund contributions
- Calculate Taxable Income:
Taxable Income = Total Income – Deductions - Apply the Relevant Tax Slab:
Match your taxable income with the correct slab (see table above). - Find Monthly Deduction:
Divide the annual tax by 12 to get your monthly salary deduction.
Use Abujan’s Free Salary Tax Calculator
If manual calculation sounds complex, use the Free Salary Tax Calculator on Abujan to instantly get your tax estimate.
Click here to use the calculator (Insert your internal link here)
Key Tax Deductions & Exemptions You Should Know
Claiming the right deductions can significantly reduce your annual tax burden. Here are some that salaried individuals in Pakistan can benefit from:
✅ Zakat contributions – Fully deductible
✅ Charitable donations – To FBR-approved institutions
✅ Insurance premiums – Life, health, and family coverage
✅ Medical allowance – If not reimbursed
✅ Retirement fund contributions – Such as Provident or Pension Funds
✅ Education and tuition fee exemptions – Under certain limits
Always keep supporting documents in case FBR requests verification.
Why These Tax Changes Matter
These revisions affect over 2.5 million salaried taxpayers and offer:
- Greater take-home pay for mid-level earners
- Encouragement for voluntary tax compliance
- Better opportunities for financial planning and saving
FAQs – Frequently Asked Questions
Q1. What is the tax exemption limit for 2025–26?
Salaried persons earning Rs. 600,000 or less annually are exempt from income tax.
Q2. Is it necessary to file a return if I earn less than Rs. 600,000?
It’s not mandatory, but highly recommended. It helps you:
- Stay on the Active Taxpayer List (ATL)
- Enjoy lower withholding tax rates
- Build a strong financial profile
Q3. What is the maximum tax rate under the new slabs?
The highest rate remains at 35%, applicable to those earning above Rs. 4.1 million annually.
Q4. Can pensioners be taxed under this system?
Only if their annual pension exceeds Rs. 10 million, and even then, only the excess is taxed at 5%.
Q5. What expenses or contributions can reduce my taxable income?
You can claim:
- Zakat
- Charity donations
- Medical allowance
- Insurance premiums
- Retirement savings
Q6. How can I calculate my salary tax easily?
Use the Free Tax Calculator on Abujan to get a fast and accurate estimate.
Q7. Can I claim a refund if my employer deducted more tax than required?
Yes! Simply file your return online via FBR’s IRIS portal, and the system will process your refund request.
Q8. What are the consequences of not filing a tax return?
You may face:
- Fines and penalties
- Higher tax rates
- Ineligibility for visas, loans, and property purchases
Q9. Where can I get help filing my tax return?
Sidekick offers expert tax filing services to help you:
- Stay compliant
- Maximize deductions
- Avoid legal or financial issues
For those looking to compare historical tax rates or dive deeper into how income tax has evolved over recent years, this external guide on income tax rates in Pakistan offers additional context.
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