Pakistan income tax calculator — FY 2025-26
This calculator applies the salaried income tax slabs announced in Pakistan's Federal Budget for FY 2025-26. Enter your annual taxable income to see the exact tax amount, effective tax rate, and monthly deduction. Pakistan uses a progressive tax system where higher income is taxed at higher rates, applied only to the income within each bracket.
Pakistan salaried income tax slabs FY 2025-26
The current slabs for salaried individuals are: up to Rs 600,000 is tax-free. Rs 600,001 to Rs 1,200,000 is taxed at 5 percent of the amount above Rs 600,000. Rs 1,200,001 to Rs 2,400,000 is Rs 30,000 plus 15 percent of the amount above Rs 1,200,000. Rs 2,400,001 to Rs 3,600,000 is Rs 210,000 plus 25 percent of the excess. Rs 3,600,001 to Rs 6,000,000 is Rs 510,000 plus 30 percent of the excess. Above Rs 6,000,000 is Rs 1,230,000 plus 35 percent of the excess.
India income tax — new regime FY 2025-26
India's new tax regime for FY 2025-26 offers lower slab rates without most exemptions. Income up to Rs 7 lakh is effectively tax-free (due to Section 87A rebate). Above Rs 7 lakh, rates range from 5 percent to 30 percent. The standard deduction of Rs 75,000 is available under the new regime. Most salaried employees benefit from the new regime unless they have substantial HRA, 80C investments, and home loan interest deductions.
Withholding tax vs self-assessment
In Pakistan, employers are required to deduct income tax at source from salary (withholding tax). At year end, if the total tax withheld exceeds your actual liability (due to deductions like zakat, charitable donations, or investment in government securities), you can file a return and claim a refund. If you are a filer, you benefit from lower withholding rates on bank transactions, vehicle purchases, and property transactions.
Frequently Asked Questions
Are allowances taxable in Pakistan? Most allowances (house rent, medical, conveyance) received from the government are included in taxable income. Some exemptions apply up to specific limits — verify with FBR guidelines for the current year.
What is the difference between the effective and marginal tax rate? The marginal rate is the rate applied to your highest bracket of income. The effective rate is your total tax divided by your total income — it is always lower than the marginal rate in a progressive system.
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