FBR Pakistan Income Tax Calculator
Calculate your salary & business income tax liabilities for Tax Year 2024-2025 / 2025-2026 based on official FBR Slabs.
Income Details
TY 2024-2025
Tax Calculation Summary
Monthly Taxable Income
PKR 0
Yearly Taxable Income
PKR 0
Monthly Tax Deduction
PKR 0
Yearly Tax Deduction
PKR 0
Monthly Net Take-Home
PKR 0
Yearly Net Take-Home
PKR 0
Effective Tax Rate
0.00%
Applicable Slab: Tier 1
0% Tax on annual income up to PKR 600,000.
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Understanding Federal Board of Revenue (FBR) Income Tax Slabs
Income tax in Pakistan is governed by the Federal Board of Revenue (FBR) under the Income Tax Ordinance, 2001. The tax rates are periodically updated in the annual Finance Act passed by the Parliament of Pakistan. For the Tax Year 2024-2025 (extending into 2025-2026), FBR revised tax brackets and rates for both salaried employees and business individuals.
Salaried vs. Non-Salaried Classification Rules
FBR classifies taxpayers into two primary individual categories:
- Salaried Individuals: An individual whose taxable income from salary exceeds 75% of their total taxable income for the tax year.
- Non-Salaried / Business Individuals: Individuals, sole proprietors, or partnerships (AOPs) whose salary component is less than 75% of their total taxable income.
FBR Income Tax Slab Rates for Tax Year 2024-2025 / 2025-2026
Below is the detailed comparative overview of the active FBR tax slabs applied to annual taxable income in Pakistan:
| Category | Annual Income Bracket (PKR) | FBR Tax Rate Formula |
|---|---|---|
| Salaried | 0 to 600,000 | 0% Tax |
| Salaried | 600,001 to 1,200,000 | 5% of amount exceeding PKR 600,000 |
| Salaried | 1,200,001 to 2,200,000 | PKR 30,000 + 15% exceeding PKR 1,200,000 |
| Salaried | 2,200,001 to 3,200,000 | PKR 180,000 + 25% exceeding PKR 2,200,000 |
| Salaried | 3,200,001 to 4,100,000 | PKR 430,000 + 30% exceeding PKR 3,200,000 |
| Salaried | Above 4,100,000 | PKR 700,000 + 35% exceeding PKR 4,100,000 |
| Non-Salaried | 0 to 600,000 | 0% Tax |
| Non-Salaried | 600,001 to 1,200,000 | 15% of amount exceeding PKR 600,000 |
| Non-Salaried | 1,200,001 to 1,600,000 | PKR 90,000 + 20% exceeding PKR 1,200,000 |
| Non-Salaried | 1,600,001 to 3,200,000 | PKR 170,000 + 30% exceeding PKR 1,600,000 |
| Non-Salaried | 3,200,001 to 5,600,000 | PKR 650,000 + 40% exceeding PKR 3,200,000 |
| Non-Salaried | Above 5,600,000 | PKR 1,610,000 + 45% exceeding PKR 5,600,000 |
Frequently Asked Questions (FAQs)
What is the minimum taxable income in Pakistan for Tax Year 2024-2025?
The basic tax exemption limit is set at PKR 600,000 per year (which translates to PKR 50,000 monthly). Anyone earning equal to or below this amount is legally exempt from paying income tax.
How is income tax calculated on salary in Pakistan by FBR?
Employers estimate your annual gross taxable salary (excluding tax-exempt allowances like medical up to 10%), apply the corresponding slab base tax and percentage rate for the excess amount, and divide the total annual tax by 12 to deduct equal monthly taxes via PAYE (Pay As You Earn).
What is the difference between Salaried and Non-Salaried business tax slabs?
If 75% or more of your taxable income comes from employment salary, you qualify for Salaried Slabs (maxing at 35%). If you are a business owner or sole proprietor where salary is under 75%, Non-Salaried Slabs apply with steeper rates (maxing at 45%).
Is medical allowance tax-exempt under FBR rules?
Yes. Medical allowance up to 10% of the basic salary is tax-free under FBR regulations, provided it is itemized separately in your salary slip and not claimed against actual medical expense reimbursements.