Frequently Asked Questions

For FY 2026-27, salaried individuals in Pakistan pay 0% on annual income up to Rs. 600,000. Income from Rs. 600,001 to Rs. 1,200,000 is taxed at 1%. Rs. 1,200,001 to Rs. 2,200,000 is taxed at Rs. 6,000 + 11% of the amount exceeding Rs. 1,200,000. Use the free calculator on the homepage for your exact figure.

Up to Rs. 600,000 — 0%. Rs. 600,001–1,200,000 — 1%. Rs. 1,200,001–2,200,000 — Rs. 6,000 + 11%. Rs. 2,200,001–3,200,000 — Rs. 116,000 + 20%. Rs. 3,200,001–4,100,000 — Rs. 316,000 + 25%. Rs. 4,100,001–5,600,000 — Rs. 541,000 + 29%. Rs. 5,600,001–7,000,000 — Rs. 976,000 + 32%. Above Rs. 7,000,000 — Rs. 1,424,000 + 35%. These rates come from Finance Act 2026. See the full table on the tax slabs page.

Finance Act 2026 restructured the higher brackets: the 2.2M–3.2M rate was cut from 23% to 20%, the 3.2M–4.1M rate was cut from 30% to 25%, and two new intermediate slabs (29% for 4.1M–5.6M and 32% for 5.6M–7M) were introduced. The top 35% rate now only starts above Rs. 7,000,000, up from Rs. 4,100,000. The 9% surcharge on income above Rs. 10,000,000 was also abolished. The 0% and 1% entry bands are unchanged.

Yes. Medical allowance up to 10% of basic salary is exempt from income tax in Pakistan. For example, if your basic salary is Rs. 100,000/month, up to Rs. 10,000 in monthly medical allowance is tax-free. The calculator includes this deduction automatically.

File online through FBR's IRIS portal at iris.fbr.gov.pk. Register with your CNIC, get your annual salary certificate from your employer, and submit before September 30 each year. Filing is free and mandatory for salaried individuals earning above Rs. 600,000/year. See the full filing guide for a step-by-step walkthrough.

The deadline for salaried individuals is September 30 each year. Late filing attracts a penalty of Rs. 1,000 per day, up to a maximum of Rs. 50,000.

A filer has filed their annual return and appears on FBR's Active Taxpayer List (ATL). Filers pay lower withholding tax rates on bank transactions, property purchases, and vehicle registration. Non-filers pay significantly more in many cases. See the filer vs non-filer guide for exact figures.

You are not legally required to file if your taxable income is below the Rs. 600,000 exemption threshold, though filing is still free and puts you on the ATL, which can lower withholding tax on other transactions like banking or property.

No. Your employer withholds and deposits tax on your behalf each month, but that is not the same as filing your annual return. You (or a tax consultant on your behalf) must still submit the return yourself on IRIS by the deadline.

Yes. If your employer withheld more tax than you actually owed for the year — common after bonuses or a mid-year raise — the excess is reconciled when you file your annual return, and you can claim it as a refund from FBR.

No. This calculator and the slabs on this site apply specifically to salaried individuals. Business and freelance income in Pakistan is taxed under separate rules and, in many cases, different slab rates — consult a tax practitioner or FBR for business income tax.