This guide covers Pakistan's salary income tax slabs for 2026 — the progressive rate structure, how employers calculate monthly deductions, and deductions that reduce your taxable income.
2026 Salary Income Tax Slabs
| Annual Salary Range | Tax Calculation |
|---|---|
| Up to Rs. 600,000 | 0% — fully exempt from income tax |
| Rs. 600,001 to 1,200,000 | 5% on the amount above Rs. 600,000 |
| Rs. 1,200,001 to 2,400,000 | Rs. 30,000 plus 15% on the amount above Rs. 1,200,000 |
| Rs. 2,400,001 to 3,600,000 | Rs. 210,000 plus 25% on the amount above Rs. 2,400,000 |
| Rs. 3,600,001 to 6,000,000 | Rs. 510,000 plus 30% on the amount above Rs. 3,600,000 |
| Above Rs. 6,000,000 | Rs. 1,230,000 plus 35% on the amount above Rs. 6,000,000 |
Verify current year slabs at fbr.gov.pk — revised annually in the Finance Act effective from July 1.
How Employers Calculate Monthly Deduction
Your employer calculates your projected annual salary tax and divides it by 12 — this monthly amount appears on your payslip as Income Tax. Mid-year salary increases trigger a recalculation for the remaining months. At year end, you file your own return on IRIS to reconcile actual versus deducted tax — if too much was deducted, the return shows a refundable amount; if too little, the shortfall is collected.
Allowable Deductions That Reduce Taxable Salary
Pakistan tax law allows several deductions that reduce your taxable income before applying the slab rates: Zakat paid to government-approved collection points is fully deductible; donations to FBR-approved charitable organisations are deductible up to 30% of taxable income; and employer contributions to approved provident funds are exempt from tax. Senior citizens aged 60 and above receive a 50% rebate on their tax liability. Check fbr.gov.pk for the current complete list.
Calculate Your Own Tax Estimate
To estimate your tax before filing: sum all annual gross salary including bonuses; deduct any exempt allowances listed on fbr.gov.pk; apply the slab rates to the resulting taxable amount; subtract any applicable rebates. Or use our Income Tax Calculator which applies the current year slabs automatically when you enter your monthly salary.
FBR and Filing Problems
File your IRIS return with the correct income and deduction figures. If excess was deducted, the return will show a refundable amount — see our Tax Refund guide for the steps to claim it.
Pakistan's tax is progressive — only the income within each bracket is taxed at that bracket's rate. A bonus increases total annual income and may push some portion into a higher bracket, but only that specific portion is taxed at the higher rate.
Frequently Asked Questions
No — bonuses are included in total annual salary income and taxed under the same progressive slab structure as regular salary. A large bonus in one year can push a portion of total income into a higher bracket for that year.
No — male and female salaried employees are taxed under the same progressive slab structure in Pakistan's Income Tax Ordinance. There's no gender differential in income tax rates.