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Pakistan salary calculator 2026

Free Pakistan salary calculator (tax year 2026, FY 2025-26): net take-home pay for salaried individuals. Six-band salaried income tax to 35%, 9% surcharge above PKR 10,000,000, optional EOBI. No mandatory payroll social security on salary. Educational, not tax advice.

Simon Bodych

by Simon Bodych

Methodology & sources

Methodology - Pakistan (2026)

Educational annual model for tax year 2026 (FY 2025-26, the tax year that runs 1 July 2025 to 30 June 2026), currency PKR (monthly = annual / 12) - not a payroll system, not a tax return, not tax advice. The salaried and non-salaried slab tables and the section 4AB surcharge are the Income Tax Ordinance 2001 rates as amended by the Finance Act 2025 (assented 29 June 2025, effective 1 July 2025). The key Pakistan nuance: salaried and non-salaried individuals use DIFFERENT schedules. The PKR 37,000 minimum-wage base for EOBI and the surcharge rates are flagged provisional. Out of scope: tax credits (sections 61/63), the lapsed teacher / researcher rebate, WWF / WPPF, minimum tax on turnover and the separate taxation of bonuses / arrears.

Employment (salaried)

  • Salaried individuals use the 6-band salaried schedule (First Schedule, Part I, Division I, ITO 2001): first PKR 600,000 at 0%, then 1% (to 1.2m), 11% (to 2.2m), 23% (to 3.2m), 30% (to 4.1m) and 35% above. By proviso to Division I, the salaried rates apply where salary income is 75% or more of taxable income.
  • Taxable salary is taken as the full gross input; allowances, exempt perquisites and tax credits are out of scope.
  • High-income surcharge (ITO section 4AB): 9% of the income tax for salaried individuals whose annual taxable income exceeds PKR 10,000,000 (the Finance Act 2025 reduced it from 10% for salaried only; non-salaried individuals and AOPs remain at 10%).
  • Pakistan has no mandatory federal payroll social-security deduction that reduces salary take-home. The EOBI old-age contribution (1% employee / 5% employer of the PKR 37,000 statutory minimum wage, EOBI Act 1976) is modelled optionally and OFF by default. Provincial social security (PESSI / SESSI) is out of scope.

Sources: Federal Board of Revenue (FBR) - Income Tax Ordinance 2001, First Schedule Part I Division I (salaried individual rates), as amended by the Finance Act 2025, FBR - Income Tax Ordinance 2001 section 4AB (high-income surcharge, 9% for salaried for TY2026); Finance Act 2025 (effective 1 July 2025).

Self-employed (non-salaried / business / AOP)

  • A self-employed individual (sole proprietor, professional, freelancer) and an Association of Persons (AOP) are taxed on net business income (revenue minus deductible expenses) under the NON-SALARIED schedule, which is steeper than the salaried one.
  • Non-salaried 6-band schedule (First Schedule, Part I, Division I, ITO 2001): first PKR 600,000 at 0%, then 15% (to 1.2m), 20% (to 1.6m), 30% (to 3.2m), 40% (to 5.6m) and 45% above. This schedule applies because salary income is below 75% of taxable income.
  • High-income surcharge (ITO section 4AB): 10% of the income tax for non-salaried individuals / AOPs whose annual taxable income exceeds PKR 10,000,000 (the Finance Act 2025 cut it to 9% for salaried only; non-salaried remain at 10%).
  • Out of scope: minimum tax on turnover (section 113), super tax (section 4C, a separate high-income levy on businesses above PKR 150m), sales tax / VAT, tax credits, WWF / WPPF and advance / withholding tax. Income tax is settled via the annual return.

Sources: Federal Board of Revenue (FBR) - Income Tax Ordinance 2001, First Schedule Part I Division I (non-salaried individual / AOP rates), as amended by the Finance Act 2025, FBR - Income Tax Ordinance 2001 section 4AB (high-income surcharge, 10% for non-salaried for TY2026); Finance Act 2025 (effective 1 July 2025).