What is the difference between salaried and business tax rates in Pakistan?
Salaried tax rates apply if your salary income constitutes more than 75% of your total taxable income. Business/non-salaried tax rates apply if your salary is 75% or less of your total income. Business tax rates have higher progressive tax rates compared to salaried ones.
What is the tax year 2025-26 in Pakistan?
The tax year 2025-26 runs from July 1, 2025, to June 30, 2026. The tax calculations on this website use the official FBR slabs passed in the Finance Act for this specific period.
Can I calculate tax for both salaried and non-salaried income?
Yes! Our calculator provides a simple toggle between "Salaried" and "Business" (non-salaried) categories, allowing you to instantly compare the different tax brackets.
What is income tax?
Income tax is a direct tax levied by the Federal Board of Revenue (FBR) on the taxable income of individuals and businesses in Pakistan under the Income Tax Ordinance 2001. The tax amount depends on your total annual income and the applicable tax slab.
How is income tax calculated?
Income tax is calculated by determining your annual taxable income and applying the FBR progressive slab rates for 2025-26. A fixed amount is added to a percentage of the income that exceeds the lower slab threshold. For example, a salaried individual earning Rs. 1,200,000 per year pays Rs. 30,000 in tax.
Who should pay income tax in Pakistan?
Every resident individual whose annual taxable income exceeds Rs. 600,000 is required to pay income tax. This includes salaried employees, business owners, freelancers, consultants, and other earners with taxable income above the threshold.
Can freelancers use this calculator?
Yes. Freelancers can select the "Business" (non-salaried) option in the calculator to estimate their income tax liability based on FBR's non-salaried tax slabs for 2025-26.
Can salaried employees use this calculator?
Absolutely. Salaried employees can select the "Salaried" option and enter their monthly or annual salary to instantly calculate their income tax, monthly deduction, and take-home pay.
Does this calculator follow FBR tax slabs?
Yes. This income tax calculator is built on the official FBR tax slabs for the tax year 2025-26 as notified in the Finance Act. Both salaried and non-salaried slab tables are included.
Is this calculator free?
Yes, this income tax calculator is completely free. There is no sign-up, registration, or payment required to use it.
How accurate are the results?
The results are highly accurate for standard income scenarios as the calculator uses the official FBR tax slabs. Individual tax liability may vary based on exemptions, deductions, and allowances. For a personalised assessment, consult a registered tax consultant.