Wealth Desk · Tax
Salary Tax Calculator (Pakistan)
Salaried? See exactly what FBR takes from your payslip under the tax year 2026-27 slabs. Freelancer? Work out what actually lands in your bank after platform fees and PSEB withholding.
Your tax breakdown
income tax per month
Slab-by-slab
| Annual bracket | Rate | Taxed here | Tax |
|---|
What lands in your account
net PKR received
How to use the salary tax calculator
- Enter your monthly gross salary in PKR — the full amount before any deductions, exactly as it appears at the top of your payslip.
- Hit "Calculate tax". The calculator annualizes your salary (× 12), runs it through the FBR progressive slabs, then divides the annual tax by 12 to show your monthly deduction.
- Read the breakdown. You get monthly tax, annual tax, net monthly and annual take-home, and your effective tax rate — the single number that tells you what share of your pay actually goes to tax.
- Study the slab table. It shows how much of your income falls in each bracket and what each bracket costs — useful when a raise pushes you into a higher slab.
- Switch to Freelance mode if you invoice clients abroad: enter the invoice amount and currency, set your USD→PKR rate, pick your platform and PSEB status, and see your net PKR.
The FBR slabs for tax year 2026-27
Pakistan taxes salary progressively: each rate applies only to the slice of income inside its bracket. The Finance Act 2026 (effective 1 July 2026) restructured the old 6-slab schedule into 8 slabs, cut middle-bracket rates, and abolished the 9% surcharge on salaries above Rs. 10 million a year:
| Annual taxable salary (PKR) | Rate | Tax payable |
|---|---|---|
| Up to 600,000 | 0% | Nil |
| 600,001 – 1,200,000 | 1% | 1% of the amount above 600,000 |
| 1,200,001 – 2,200,000 | 11% | 6,000 + 11% of the amount above 1,200,000 |
| 2,200,001 – 3,200,000 | 20% | 116,000 + 20% of the amount above 2,200,000 |
| 3,200,001 – 4,100,000 | 25% | 316,000 + 25% of the amount above 3,200,000 |
| 4,100,001 – 5,600,000 | 29% | 541,000 + 29% of the amount above 4,100,000 |
| 5,600,001 – 7,000,000 | 32% | 976,000 + 32% of the amount above 5,600,000 |
| Above 7,000,000 | 35% | 1,424,000 + 35% of the amount above 7,000,000 |
That gap between your marginal rate (your top bracket) and your effective rate (total tax ÷ total income) is the whole point of progressive taxation. Two things the estimate leaves out: the 75% rule (these slabs apply where salary is at least 75% of total taxable income) and personal deductions or credits, which vary case by case.
Freelance mode: from invoice to PKR in hand
A $500 Upwork invoice does not become Rs. 141,000 in your account. The money passes through three toll booths first — and the order matters:
| Step | Example: $500 via Upwork, PSEB-registered |
|---|---|
| Invoice | $500 |
| → PKR at 282 | Rs. 141,000 |
| − Upwork 10% | Rs. 141,000 − 14,100 = Rs. 126,900 |
| − PSEB withholding 0.25% | Rs. 126,900 − 317 = Rs. 126,583 net |
GBP invoices are first converted to USD using the day's live GBP→USD cross-rate (the page fetches it automatically), because the USD→PKR rate is the one you can verify against your bank. The USD→PKR field stays editable for exactly that reason — mid-market rates and bank rates differ by a few rupees, and on a large invoice those rupees add up.
Frequently asked questions
Are these the current FBR salary tax slabs?
The calculator uses the salaried-individual slabs from the Finance Act 2026 (tax year 2026-27), effective 1 July 2026, with 8 progressive brackets from 0% up to 35%. Rates change with each budget, so treat the result as an indicative estimate and verify with FBR or a tax professional.
Why is the tax worked out annually and then divided by 12?
FBR taxes salary on the annual figure: your employer annualizes your monthly pay (× 12), applies the progressive slabs to that total, then divides the resulting annual tax by 12 for the monthly deduction on your payslip.
Does the calculator include the 9% surcharge on high salaries?
No surcharge is added, because the Finance Act 2026 abolished the 9% surcharge that previously applied to salaried income above Rs. 10 million a year.
How does the freelance mode estimate PSEB withholding?
Banks withhold a final tax on IT-export remittances: 0.25% for PSEB-registered freelancers and 1% otherwise. The calculator applies that percentage to the amount received after the platform fee, as an indicative estimate.
Is this tax advice?
No. The calculator gives indicative estimates for planning. Deductions, credits, allowances and ATL status can all change your actual liability — verify with FBR or a tax professional before acting on the numbers.