income tax

How to calculate your income tax in Pakistan for 2025 for salaried persons.

Today, I will give you a full step-by-step guide on how you can file your tax return for tax year 2025-2026. So the first thing that we need to understand is the tax slabs for the year 2025-2026. First of all, the starting slab is still the same for 2025, starting from 600000, so it means if your salary is 50000 or below, you don’t have to pay any tax at all. But that didn’t mean you don’t have to submit your tax return, you will still need to submit your tax return on the Iris or FBR new app for tax called Tax Asaan. Of course, your tax will be 0, but it will get you a tax filer and you will be able to enjoy all the perks of being a tax filer. So now we know that your tax will start after 50000 salary mark and the first slab will be 600000, so let’s just have a look at all the new slabs and new tax rates on those slabs.

Tax slabs for FY 2025-2026 with rate and fixed amounts


Annual Taxable incom (PKR)
Fixed Amount (PKR)Marginal rate on Excess or above (%)
Up to 600,000 PKR00%
600,001 – 1,200,00001%
1,200,001 – 2,200,000600011%
2,200,001 – 3,200,000116,00023%
3.200,001 – 4,100,000346,00030%
above 4,100,000616,00035%

How these slabs work to calculate income tax for 2025-2026

So the first slab is up to 600,000 PKR, same as before, people falling under that will not have any tax payable at all. Basically, if your salary is 50000 or below, you have zero tax to pay. Our next slab is 600,001 to 1,200,000 on that slab, you don’t have any fixed amount, but now you will have to pay 1% tax on your income. And that’s good news because previously you would have to pay 2.5% on that slab. FBR recently changed that on 19 June from the previous bill of 2.5% to 1%. So, on our third slab, things got a little more interesting. Now, you will have to pay a fixed amount as well. Let’s first discuss that fixed price element and understand it before moving forward.

What is fixed tax amount in income tax?.

So, the fixed amount on tax is the amount you have to pay at a certain tax slab, no matter what. So if you fall under a tax slab that have fixed tax amount you will like our third slab you will need to first pay the fix amount and than tax on that amount above that slab, For example let’s say you calculated your income tax on your income and that is 10000 but that slab also have fix amount of 6000 now the total tax payable will be 16,000PK tax amount + fixed tax amount. I hope you understand that let’s just continue now.

So now you understand all the basics of tax slab their rates and fixed tax amounts on each tax slab Let’s just break down how much you would likely going to pay tax based on your current salary

Monthly salaey (PKR)Annual SalaryTax payable Annual (PKR)Tax payable Monthly (PKR)
5000060000000
750009000003000250
10000012000006000500
1250001500000390003250
1500001800000720006000
17500021000001050008750
200000240000018200015167
250000300000032000026667
300000360000048000040000
350000420000065850054875
400000480000086900072417
50000060000001299000108250
60000072000001729000144083
80000096000002589000215750
100000012000003449000287417

Conclusion

So above i provided you with a complete list of tax payable based on average Pakistani salaries. if your salary did not fall under and of it you can still calculate that using the slabs provided above. overall FBR have reduced the tax rates for salaried Pakistani’s this year so the tax net can get bigger for FY 2025-2026. if you still fell confuse you can contact us our comment down below.

Usama Butt

Usama Butt is a banking professional from Pakistan with hands-on experience in loans, credit cards, and salary structures. Through his website, he creates simple financial tools and writes practical guides to help people make smarter money decisions. His goal is to make finance easy and accessible for everyone, especially young professionals and salaried individuals.

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