📌 How Is Salary Tax Calculated?
FBR calculates salary tax by annualizing your monthly income, applying the progressive slab rates to your taxable income, and then dividing the annual tax into monthly deductions. Your employer withholds this amount at source before crediting your salary.
💲 What Changed in 2025–26?
The Finance Act 2025–26 introduced significant relief for salaried individuals. Tax rates for the lower brackets were reduced from 2.5% to just 1%, and middle-income brackets also saw meaningful reductions, saving workers Rs. 2,000 to Rs. 16,888 per month.
✅ Who Should Use This Calculator?
This calculator is designed for salaried individuals in Pakistan. If you receive a fixed monthly salary, this tool will accurately compute your tax liability. For freelancers, business owners, or those with multiple income sources, tax calculation may differ.
📋 What Deductions Can You Claim?
Salaried individuals can claim deductions for Zakat, approved charitable donations, pension fund contributions, and tax credits for education expenses. A 10% medical allowance exemption on basic salary is also available. Consult a tax advisor for personalized guidance.
📈 Filer vs. Non-Filer
Being on the FBR Active Taxpayer List (ATL) as a "filer" gives you significant benefits including lower withholding tax rates on banking transactions, property purchases, and vehicle registration. Non-filers face substantially higher rates across the board.
📅 When Are Tax Returns Due?
For the tax year 2025–26 (July 2025–June 2026), the income tax return filing deadline for salaried individuals is typically September 30, 2026. Filing early helps you stay on the ATL and avoid penalties or surcharges.