Pakistan Income Tax Guide — FBR Slabs & Take-Home Pay

Pakistan's income tax for salaried individuals is governed by the Income Tax Ordinance 2001, administered by the Federal Board of Revenue (FBR). Each year's Finance Act sets the slab structure effective from 1 July.

Estimate only — not tax advice. Verify current slabs at fbr.gov.pk and consult a chartered accountant for your actual liability.

The tax year

Pakistan's tax year runs 1 July – 30 June. FY 2025–26 means income earned between 1 July 2025 and 30 June 2026. When the National Assembly passes the Finance Act (usually June), new slab rates take effect from 1 July — the highest-search period for "Pakistan income tax" is June–August.

FY 2025–26 salaried slabs (Finance Act 2025)

The Finance Act 2025 brought significant tax relief by cutting rates in the lower and middle brackets:

Annual Gross	Tax on the band
Up to Rs. 600,000	0%
Rs. 600,001 – 1,200,000	1% on excess over 600,000
Rs. 1,200,001 – 2,200,000	Rs. 6,000 + 11% on excess over 1,200,000
Rs. 2,200,001 – 3,200,000	Rs. 116,000 + 23% on excess over 2,200,000
Rs. 3,200,001 – 4,100,000	Rs. 346,000 + 30% on excess over 3,200,000
Above Rs. 4,100,000	Rs. 616,000 + 35% on excess over 4,100,000

Quick example — Rs. 150,000/month (Rs. 1.8M annual):

• 0 – 600k at 0% = ₨ 0
• 600k – 1.2M at 1% = ₨ 6,000
• 1.2M – 1.8M at 11% = ₨ 66,000
• Total = ₨ 72,000 | Effective rate = 4.0%

FY 2024–25 salaried slabs (Finance Act 2024)

Annual Gross	Tax on the band
Up to Rs. 600,000	0%
Rs. 600,001 – 1,200,000	5% on excess over 600,000
Rs. 1,200,001 – 2,200,000	Rs. 30,000 + 15% on excess over 1,200,000
Rs. 2,200,001 – 3,200,000	Rs. 180,000 + 25% on excess over 2,200,000
Rs. 3,200,001 – 4,100,000	Rs. 430,000 + 30% on excess over 3,200,000
Above Rs. 4,100,000	Rs. 700,000 + 35% on excess over 4,100,000

How marginal slab taxation works

FBR uses a progressive (marginal) system. Each band of income is taxed at its own rate — you only pay the higher rate on the portion above each threshold, not your entire income.

The "base amount" (e.g. Rs. 6,000 in the 3rd slab for FY 2025–26) is simply the accumulated tax from all lower slabs. The math is identical to applying each marginal rate band by band.

Annual Tax = sum of (income in each band × band rate)
Monthly Tax = Annual Tax ÷ 12
Take-Home (annual) = Annual Gross − Annual Tax
Take-Home (monthly) = Take-Home (annual) ÷ 12

Use the Pakistan Income Tax Calculator to compute any salary instantly, compare tax years, or run two salary scenarios side by side.

FY 2025-26 vs FY 2024-25 — what changed

Band	FY 2024-25	FY 2025-26	Saving at band ceiling
600k – 1.2M	5%	1%	Rs. 24,000
1.2M – 2.2M	15%	11%	Rs. 40,000
2.2M – 3.2M	25%	23%	Rs. 20,000
3.2M – 4.1M	30%	30%	—
Above 4.1M	35%	35%	—

The three lower bands saw cuts; the two upper bands were unchanged. A salaried employee earning Rs. 3.6M annually saves approximately Rs. 84,000 under FY 2025–26 compared to FY 2024–25.

What is not included

• Super Tax — levied on high-income earners and corporates above certain thresholds.
• Income surcharge — a 9% surcharge on income tax applies when salary income exceeds Rs. 10 million.
• Non-salaried slabs — self-employed, business, or freelance income follows different rates.
• Presumptive tax — exports and certain contract payments are taxed under the Final Tax Regime (FTR) at source.
• Provincial taxes — the Sindh Revenue Board and Punjab Revenue Authority levy separate professional taxes on salaried individuals.

Freelancers and PSEB

Freelancers registered with the Pakistan Software Export Board (PSEB) may qualify for a reduced or concessional withholding rate on foreign-sourced income. Verify current conditions with PSEB and your tax consultant.

When slabs change

FBR slabs change with each Finance Act, typically enacted in June. Always verify the current year's rates at fbr.gov.pk before computing your actual liability.