🧾 Salary Income Tax Calculator

Estimate the monthly and yearly income tax on your salary under the latest FBR slabs.

🛠️ Free tool by the NayaPakistan team · Updated September 2026

Pakistan taxes salaried income on a progressive slab system: each rate applies only to the rupees that fall inside its slab, not to your whole salary. That is why crossing into a higher bracket never lowers your take-home pay — only the extra income is taxed at the higher rate. This calculator splits your annual salary across the slabs and shows the monthly deduction your employer withholds.

The first Rs. 600,000 per year (Rs. 50,000 a month) is tax-free for salaried persons. Rates above that step up through several bands. Filing an annual return can also recover tax withheld elsewhere — on bank profit, vehicle token, mobile recharge and property — so being a filer usually pays for itself.

Frequently asked questions

How is income tax calculated on salary in Pakistan?

Your annual salary is divided across tax slabs, and each slab rate applies only to the income inside it. The totals are added and divided by 12 to give the monthly deduction. This calculator shows the full slab-by-slab working.

What salary is tax-free in Pakistan?

For salaried individuals, annual income up to Rs. 600,000 — about Rs. 50,000 per month — is tax-free. Tax applies only to income above that amount.

Does a higher tax slab reduce my take-home pay?

No. Because only the income inside each slab is taxed at that slab's rate, moving into a higher bracket only taxes the extra rupees at the higher rate — your net pay always rises.

Are the tax slabs updated every year?

Yes. The slabs and rates are set annually in the Finance Act (budget), so treat this as an estimate and confirm the current-year rates with the FBR.

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