1. What is Pakistan Income Tax?

The Pakistan Income Tax is a progressive tax system where tax rates increase as taxable income increases. For FY 2025-26, the tax is calculated based on specific income slabs with different rates applied to each portion of income.

2. How Does the Calculator Work?

The calculator uses the Pakistan tax slab rates:

Where:

• First PKR 600,000 — 0%
• Next PKR 600,000 (up to 1,200,000) — 2.5%
• Next PKR 1,200,000 (up to 2,400,000) — 12.5%
• Next PKR 2,400,000 (up to 4,800,000) — 20%
• Above PKR 4,800,000 — 25%

Explanation: The tax is calculated by applying different rates to different portions of your income according to these slabs.

3. Importance of Tax Calculation

Details: Accurate tax calculation helps in financial planning, ensures compliance with tax laws, and helps avoid penalties for underpayment.

4. Using the Calculator

Tips: Enter your annual taxable income in PKR. The calculator will automatically apply the appropriate tax rates based on the current fiscal year's tax slabs.

5. Frequently Asked Questions (FAQ)

Q1: What counts as taxable income?
A: Taxable income includes salary, business profits, capital gains, rental income, and other sources after allowable deductions.

Q2: Are there any tax credits available?
A: Yes, various tax credits may be available depending on your circumstances (e.g., for investments, charitable donations, etc.).

Q3: When is the tax filing deadline?
A: Typically September 30 for individuals, but check with FBR for the exact deadline each year.

Q4: Can I file my taxes online?
A: Yes, through the Federal Board of Revenue's (FBR) Iris system.

Q5: What if I have income from multiple sources?
A: You must combine all taxable income and calculate tax on the total amount.