Understanding your salary tax in Pakistan helps you stay financially prepared. Each year, the government updates income tax slabs (income ranges taxed at different rates), withholding rules (how tax is deducted from salaries), and Section 149 provisions (special regulations for salaried individuals). These changes directly affect your take-home pay.
Whether you are an employee, teacher, banker, accountant, or working in the corporate sector, knowing your exact tax deduction is essential for accurate budgeting and financial planning.
CalculateMyTax.pk provides an updated salary tax calculator Pakistan, designed to follow the latest Federal Board of Revenue (FBR) rules. You can calculate your monthly tax, annual tax, and net salary instantly using the current tax structure.
This guide explains how salary tax is calculated, outlines Section 149 tax slabs for FY 2025–26, and clarifies the removal of the 25% teacher and researcher tax rebate effective from 1 July 2025.
What Is a Salary Tax Calculator Pakistan?
A salary tax calculator is an online tool that automatically:
- Calculates your annual taxable income
- Applies the correct FBR salary tax slab
- Computes your total annual income tax
- Converts annual tax into a monthly deduction
- Shows your net salary after tax
Our Pakistan salary tax calculator uses official FBR slab formulas to ensure compliance with current tax laws and withholding requirements under Section 149.
How Salary Tax Is Calculated in Pakistan
Step 1: Determine Your Annual Taxable Income
Your taxable income generally includes:
- Basic salary
- House rent allowance
- Conveyance allowance
- Any other taxable allowances
If you enter a monthly salary, the calculator multiplies it by 12 to determine your annual taxable income.
Step 2: Apply the FBR Tax Slabs Under Section 149
Pakistan follows a progressive income tax system. As income increases, the applicable tax rate also rises.
For FY 2025–26, the Inland Revenue Department issued updated salary tax rates under Section 149 of the Income Tax Ordinance, applicable from 1 July 2025 to 30 June 2026.
Official Salary Tax Slabs for FY 2025–26
(Section 149 – Salary)
According to the official government notification, the salary tax slabs for the 2025–26 tax year are:
| Annual Taxable Income (Rs.) | Tax Rate / Tax Payable |
|---|---|
| Up to Rs. 600,000 | 0% (No tax) |
| Rs. 600,001 – 1,200,000 | 1% of the amount exceeding Rs. 600,000 |
| Rs. 1,200,001 – 2,200,000 | Rs. 6,000 + 11% of the amount exceeding Rs. 1,200,000 |
| Rs. 2,200,001 – 3,200,000 | Rs. 116,000 + 23% of the amount exceeding Rs. 2,200,000 |
| Rs. 3,200,001 – 4,100,000 | Rs. 346,000 + 30% of the amount exceeding Rs. 3,200,000 |
| Above Rs. 4,100,000 | Rs. 616,000 + 35% of the amount exceeding Rs. 4,100,000 |
These slabs match the official Section 149 salary tax rates for FY 2025–26. Our salary tax calculator applies these slabs exactly as issued by FBR.
Important Update: Teacher & Researcher Tax Rebate Removed
A major policy change has been implemented from 1 July 2025.
- The 25% income tax rebate previously available to full-time teachers and researchers has been discontinued.
- Tax Rebate @ 25% is not allowed to a full-time teacher or researcher with effect from 01-07-2025.
Up to FY 2024–25, eligible teachers and researchers received a 25% tax reduction. From FY 2025–26 onward, salary tax for teachers and researchers is calculated in the same way as for other salaried individuals.
Our calculator already reflects this change.
Why Use CalculateMyTax.pk Salary Tax Calculator?
Many salary tax calculators provide only basic estimates. CalculateMyTax.pk is designed to offer a clearer, more transparent, and user-friendly experience.
1. Interactive Tax Breakdown Graph
The calculator generates a visual breakdown showing:
- Taxable income
- Annual tax
- Monthly tax
- Net monthly salary
- Effective tax rate
This helps users understand how each tax slab affects their salary.
2. Downloadable Salary Tax Report (PDF)
After the calculation, users can download a complete salary tax report, which is useful for:
- Job interviews
- Visa applications
- Bank loans and financing
- HR and payroll verification
- Personal record keeping
This feature is not commonly available on basic Income tax calculators in Pakistan.
For long-term financial planning after retirement, you can also estimate benefits using our Pakistan Pension Calculator, which applies official government pension rules.
3. Monthly or Annual Salary Input
You can enter either:
- Monthly salary, or
- Annual salary
The calculator automatically converts values, making it convenient for both employees and HR professionals.
4. Example of Salary Tax Calculation (FY 2025–26)
Example: Monthly Salary = Rs. 80,000
- Annual Income: Rs. 960,000
- Annual Tax: Rs. 3,600
- Monthly Tax: Rs. 300
- Net Monthly Salary: Rs. 79,700
- Net Annual Salary: Rs. 956,400
- Effective Tax Rate: 0.38%
This example helps verify whether the correct tax is being deducted.
5. Tax Certificate Guide (Important for Employees)
Every salaried individual in Pakistan is entitled to receive an annual tax certificate, including:
- Salary Certificate
- Income Tax Certificate
- Annual Tax Deduction Summary
These documents are issued by employers, government departments, universities, or corporate HR/payroll offices.
They should be requested after 30 June, at the end of each financial year, and are required for tax returns, loans, visa applications, and income verification.
Calculate Your Salary Tax Now
The FY 2025–26 tax year includes two major updates:
- Revised Section 149 salary tax slabs
- Removal of the 25% teacher and researcher rebate
Manual calculations can easily result in errors. The CalculateMyTax.pk salary tax calculator provides accurate estimates using official FBR rules, correct monthly deductions, and a clear breakdown of results.
This calculator provides estimates based on publicly available FBR rules. Final tax liability may vary depending on individual circumstances.
Simply enter your salary and let the calculator handle the calculation — quickly, accurately, and free.
If you also purchase or register mobile devices, you may need to calculate additional duties using our PTA Tax Ccalculator, which applies the latest PTA and FBR-approved rates.