Calculate your monthly and annual income tax based on FBR's official 2025-26 progressive slabs. Includes medical allowance deductions and filer/non-filer rates.
✓ FBR Official Slabs✓ Monthly Breakdown✓ Filer / Non-Filer✓ Medical Allowance
PKR Salary Tax — FBR 2025-26
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FBR Tax Year 2025-26 (1 July 2025 — 30 June 2026) k mutabiq salaried individuals ke liye progressive tax slabs. Yeh calculator FBR ki official rates use karta hai. Exemption limit: PKR 600,000/year.
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Monthly Tax
PKR 0
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Annual Tax
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FBR Tax Slabs 2025-26 — Salaried Individuals
Annual Income Range
Fixed Tax
Marginal Rate
Up to PKR 600,000
Nil
0%
PKR 600,001 – 1,200,000
Nil
1% on excess over 600,000
PKR 1,200,001 – 2,400,000
PKR 6,000
10% on excess over 1,200,000
PKR 2,400,001 – 3,600,000
PKR 126,000
15% on excess over 2,400,000
PKR 3,600,001 – 6,000,000
PKR 306,000
20% on excess over 3,600,000
PKR 6,000,001 – 12,000,000
PKR 786,000
25% on excess over 6,000,000
Above PKR 12,000,000
PKR 2,286,000
35% on excess over 12,000,000
FBR Salary Tax Pakistan 2025-26 — Complete Guide to Income Tax Slabs & Deductions
The Federal Board of Revenue (FBR) governs income tax in Pakistan under the Income Tax Ordinance 2001. For Tax Year 2025-26 (1 July 2025 – 30 June 2026), the government maintains a seven-slab progressive tax system for salaried individuals. Salaries up to PKR 600,000 annually remain exempt, while the top marginal rate reaches 35% for incomes above PKR 12 million. Key deductions include medical allowances (up to 10% of basic salary, tax-free), Zakat paid (100% deductible), and contributions to approved pension funds. Non-filers face higher withholding tax rates and restrictions on vehicle registration, property purchase, and banking transactions.
⚙️ How FBR Salary Tax is Calculated
1
Determine gross annual income: Multiply monthly salary × 12. Include all components — basic pay, house rent, conveyance, and bonuses.
2
Apply allowable deductions: Subtract tax-exempt medical allowance (10% of gross, max ~PKR 120,000/year) and any Zakat paid during the year.
3
Identify your tax slab: Match your taxable income against the 2025-26 FBR slab table. Pakistan uses a marginal system — only income within each slab range is taxed at that rate.
4
Calculate annual and monthly tax: Add the fixed tax for your slab plus the marginal rate on excess. Divide by 12 for monthly withholding deducted by employer.
5
File via FBR IRIS portal: Submit your annual return at iris.fbr.gov.pk before 30 September. Filer status reduces WHT on banking, property, and vehicles significantly.
What is the tax-free income limit in Pakistan 2025-26?▼
For Tax Year 2025-26, salaried individuals earning up to PKR 600,000 annually (PKR 50,000/month) pay zero income tax. Income between PKR 600,001 and PKR 1,200,000 is taxed at just 1% on the amount exceeding PKR 600,000. This exemption threshold has been raised to provide relief to lower-income salaried workers.
What is the difference between filer and non-filer in Pakistan?▼
A filer appears on FBR's Active Taxpayer List (ATL). Non-filers pay significantly higher withholding tax on bank transactions, property purchases, vehicle registration, and dividends. For example, WHT on property purchase is 1% for filers vs 2% for non-filers. Filing your return is free and takes under an hour via the IRIS portal at iris.fbr.gov.pk.
Is medical allowance fully exempt from tax in Pakistan?▼
Medical allowance up to 10% of basic salary is exempt from income tax in Pakistan, provided it is not a substitute for actual medical reimbursements. Many companies structure 10% of CTC as medical allowance to legally reduce employees' taxable income. Amounts above 10% are treated as taxable salary.
When is the FBR tax return deadline for 2025-26?▼
The annual income tax return for Tax Year 2025-26 (income earned July 2025 to June 2026) must be filed by 30 September 2026. FBR typically grants extensions. Returns are submitted through the IRIS online portal. Late filing attracts a penalty of PKR 1,000 per week up to 25% of tax payable.
How is withholding tax on salary deducted by employer?▼
Pakistani employers are legally required to deduct withholding tax (WHT) from employees' salaries monthly and deposit it with FBR. The employer must calculate your annual taxable income at the start of each year and divide the expected annual tax by 12 for equal monthly deductions. Any changes in salary during the year require recalculation. Employees receive a certificate of tax deducted (Section 149 certificate) for use in annual return filing.