Pakistan uses a progressive slab system for income tax. Your annual income is split into bands, and each band is taxed at its own rate, so earning more never reduces your take-home pay. For salaried individuals in FY 2025-26, the first Rs 6,00,000 a year is completely tax-free. Income above that is taxed in steps: 1%, then 11%, 23%, 30%, and a top rate of 35% on annual income above Rs 41,00,000. A 9% surcharge applies on the computed tax once annual taxable income crosses Rs 1,00,00,000.
This is why your effective tax rate (the share of your whole salary that actually goes to tax) is always lower than your marginal rate (the rate on your next rupee earned). Someone on Rs 2,00,000 a month, for example, has a 23% marginal rate but an effective rate of under 7%, because only the top slice of their income reaches the 23% band.
The calculator above applies the official FBR slabs for salaried, business, IT-export and property income across six tax years (FY 2020-21 to FY 2025-26). To see the full slab tables side by side, visit the tax slabs reference, or look up the tax on any specific monthly salary in the salary tax guide.