Question 1

What are the FBR tax slabs for 2026?

Accepted Answer

For Tax Year 2026-27 (FY27), FBR applies 8 progressive salaried slabs: (1) Up to PKR 600,000: 0% · (2) PKR 600,001–1,200,000: 1% · (3) PKR 1,200,001–2,200,000: PKR 6,000 + 11% · (4) PKR 2,200,001–3,200,000: PKR 116,000 + 20% · (5) PKR 3,200,001–4,100,000: PKR 316,000 + 25% · (6) PKR 4,100,001–5,600,000: PKR 541,000 + 29% · (7) PKR 5,600,001–7,000,000: PKR 976,000 + 32% · (8) Above PKR 7,000,000: PKR 1,424,000 + 35%. A 10% surcharge applies under Section 4AB if annual taxable income exceeds PKR 10 Million.

Question 2

What is the current salary tax rate in Pakistan?

Accepted Answer

The statutory marginal salary tax rates in Pakistan range from 0% (up to PKR 50,000/month) up to 35% (above PKR 7 Million/year). Effective tax rates for common monthly salaries are: PKR 100,000/mo = 0.50% (PKR 500/mo tax) · PKR 150,000/mo = 4.00% (PKR 6,000/mo tax) · PKR 300,000/mo = 11.56% (PKR 34,667/mo tax) · PKR 500,000/mo = 18.40% (PKR 92,000/mo tax).

Question 3

How to calculate FBR tax?

Accepted Answer

To calculate FBR salary tax: (1) Annualize your salary by multiplying monthly gross pay by 12. (2) Identify your applicable slab from the 8 statutory brackets. (3) Compute tax using the formula: Base Fixed Tax + [Marginal Rate × (Annual Gross − Slab Lower Threshold)]. (4) Divide the resulting annual tax liability by 12 to determine your monthly Section 149 payroll withholding tax deduction.

Question 4

What is the income tax slab for FY 2026-27?

Accepted Answer

Under the Finance Act 2026 for FY 2026-27, the initial taxable slab between PKR 600,001 and PKR 1,200,000 was reduced from 5% to 1%, saving middle-income earners up to PKR 24,000 per year. Slabs above PKR 1.2M were expanded into 8 graduated tiers (11%, 20%, 25%, 29%, 32%, 35%) replacing the older 6-bracket structure.

Question 5

What is the difference between salaried and non-salaried tax rates in Pakistan?

Accepted Answer

Individuals whose salary constitutes more than 75% of their total taxable income qualify for salaried tax slabs, which carry lower initial tax rates than business/non-salaried individuals.

Question 6

What is the tax rate on rental income in Pakistan?

Accepted Answer

Rental income from property is taxed under Section 15 of the Income Tax Ordinance according to separate progressive slab rates for property income.

Question 7

Who is required to file an annual income tax return in Pakistan?

Accepted Answer

Every individual whose taxable income exceeds PKR 600,000, property owners of 500 sq yards or more, motor vehicle owners above 1000cc, and registered commercial NTN holders must file.

Question 8

What is the Active Taxpayer List (ATL) benefit?

Accepted Answer

Being on the Active Taxpayer List (filer status) halves withholding tax rates on banking transactions, vehicle registrations, and property purchases compared to non-filers.

Bracket	Taxable	Rate	Tax
Up to PKR 600,000 (0%)	₨150,000.00	0%	₨0.00
PKR 600,001 - 1,200,000 (1%)	₨0.00	1%	₨0.00
PKR 1,200,001 - 2,200,000 (11%)	₨0.00	11%	₨0.00
PKR 2,200,001 - 3,200,000 (20%)	₨0.00	20%	₨0.00
PKR 3,200,001 - 4,100,000 (25%)	₨0.00	25%	₨0.00
PKR 4,100,001 - 5,600,000 (29%)	₨0.00	29%	₨0.00
PKR 5,600,001 - 7,000,000 (32%)	₨0.00	32%	₨0.00
Above PKR 7,000,000 (35%)	₨0.00	35%	₨0.00

Slab	Annual Taxable Income	Monthly Salary Band	Tax Rate	Base Fixed Tax	FBR Statutory Calculation Formula
Slab 1	Up to PKR 600,000	Up to PKR 50,000	0%	PKR 0	Nil (100% Tax-Free Exemption)
Slab 2	PKR 600,001 – 1,200,000	PKR 50,001 – 100,000	1%	PKR 0	1% of amount exceeding PKR 600,000
Slab 3	PKR 1,200,001 – 2,200,000	PKR 100,001 – 183,333	11%	PKR 6,000	PKR 6,000 + 11% of excess over PKR 1.2M
Slab 4	PKR 2,200,001 – 3,200,000	PKR 183,334 – 266,667	20%	PKR 116,000	PKR 116,000 + 20% of excess over PKR 2.2M
Slab 5	PKR 3,200,001 – 4,100,000	PKR 266,668 – 341,667	25%	PKR 316,000	PKR 316,000 + 25% of excess over PKR 3.2M
Slab 6	PKR 4,100,001 – 5,600,000	PKR 341,668 – 466,667	29%	PKR 541,000	PKR 541,000 + 29% of excess over PKR 4.1M
Slab 7	PKR 5,600,001 – 7,000,000	PKR 466,668 – 583,333	32%	PKR 976,000	PKR 976,000 + 32% of excess over PKR 5.6M
Slab 8	Above PKR 7,000,000	Above PKR 583,333	35%	PKR 1,424,000	PKR 1,424,000 + 35% of excess over PKR 7.0M

Pakistan Income Tax Calculator

Worked Calculation Examples (Pakistan)

Salaried Individual — PKR 100,000 / month (PKR 1.2M Annual)

Salaried Individual — PKR 150,000 / month (PKR 1.8M Annual)

Salaried Individual — PKR 300,000 / month (PKR 3.6M Annual)

Non-Salaried Business Individual (PKR 3,000,000 Annual Profit)

How Your Calculation Works (Pakistan • 2026-27)

Official Pakistan Income Tax Slabs Schedule

Statutory Allowances & Deductions

Frequently Asked Questions (Pakistan)

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