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Estimate Salary Tax in Pakistan
Live rates · Last updated 26 September 2026 · refreshes each time you open this page
Enter your monthly salary and effective tax rate to see your yearly tax and monthly take-home pay.
This is an estimate based on the rate you enter. Final tax depends on your filer status, credits and deductions.
How income tax is worked out
Income tax is charged on a progressive scale, which means the rate rises in steps as income increases. Because the brackets and rates are revised in almost every annual budget, this calculator asks for your effective tax rate instead of hard-coding a set of brackets that would soon be wrong.
Your effective rate is simply your total annual tax divided by your total annual income, multiplied by 100. You can find it on your payslip, from your employer's payroll team, or from your own tax return.
The result is an estimate of gross pay minus tax. It does not include pension contributions, provident fund, social security or any other deduction, so your actual take-home figure may be slightly different.
How income tax slabs work
Tax in Pakistan is slab based, not flat. The first part of your yearly income is exempt, and then each extra band is taxed at its own rate. That is why a slightly higher salary does not suddenly tax your whole income at a high rate. The tool applies the current year's slabs and shows the break-up band by band.
Filer vs non-filer
A filer is registered on the FBR's active taxpayer list. Non-filers pay higher withholding tax on many transactions, including some bank and property dealings. Getting on the list costs nothing and can save real money — the calculator's tax figure is the same, but your actual deductions are not.
Legal ways to lower your tax
- Use an approved pension or retirement fund where the law allows it for your income type.
- Claim the tax credit for approved investments such as life insurance or mutual funds, within the yearly limits.
- Keep records of donations and expenses you want to claim.
- File your return every year so you stay on the active taxpayer list.
Frequently asked questions
What is an effective tax rate?
It is the share of your total income that goes to tax. If you earn 1,200,000 and pay 60,000, your effective rate is 5%.
Why not include the tax brackets?
Brackets change with each budget, so asking for your current effective rate keeps the calculator accurate over time.
Does filer or non-filer status matter?
In some cases it does, as a higher rate can apply to non-filers. Confirm your rate with a tax professional.
What is not included in the result?
Provident fund, pension and other payroll deductions are not included, so treat the figure as gross pay minus tax.
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How to use the Salary & Tax Calculator
- Type your monthly or yearly salary and select the tax year.
- Add other income and choose salaried or business.
- Press Calculate to see the yearly tax and your monthly take-home.
Example
Rs 150,000 per month (Rs 1.8 million per year) salaried — the tool shows slab-wise tax and net pay.
Frequently asked questions
Who pays income tax in Pakistan?
Salaried and business individuals whose yearly income crosses the exempt limit.
Are the slabs updated every year?
Yes, the finance act changes them, so always use the latest year in the tool.
Is this an official FBR calculation?
It follows the published slabs but is an estimate — verify with FBR or your employer.
Is bonus taxable?
Yes, bonus and most allowances are part of taxable salary.
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