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FBR SALARY TAX ENGINE · FY 2026-27 & 2026

Pakistan Salary Calculator 2026-27

Accurate net take-home pay calculation based on the official Federal Board of Revenue (FBR) Income Tax Ordinance 2001 & Finance Act provisions.

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FBR Verified Slabs
Rs. 125,000
PKR
Rs. 30,000 (Min)Rs. 500,000Rs. 1,500,000+

Allowances & Other Deductions (Optional)

EOBI Contribution (Employee Share)

Official Statutory Rate: Rs. 370 / Month

Exempt up to 10% of basic under Clause 139
TAKE-HOME CALCULATION

Net Monthly Salary

FY 2026-27
In-Hand Bank Transfer Amount
PKR118,380/ Month

Annual Net: Rs. 1,420,560

Monthly Gross SalaryRs. 125,000
Monthly Income Tax- Rs. 6,250
EOBI Contribution- Rs. 370
Effective Tax Rate5.00%
Total Annual Income TaxRs. 75,000
Automate Company Payroll (ERP Demo)

✓ Verified under Income Tax Ordinance 2001

OFFICIAL FBR SALARIED SLABS

Official Income Tax Slabs for Salaried Individuals (FY 2026–2027)

Division I of Part I of the First Schedule to the Income Tax Ordinance, 2001 (Salaried Class)

SlabTaxable Income Range (Annual)Monthly Salary RangeTax Rate & Formula
#1Rs. 0 — Rs. 600,000Rs. 0 — 50,000/moUp to Rs. 600,000 (Rs. 50,000/mo) — 0% Tax
#2Rs. 600,001 — Rs. 1,200,000Rs. 50,000 — 100,000/moRs. 600,001 to Rs. 1,200,000 — 5% of amount exceeding Rs. 600,000
#3Rs. 1,200,001 — Rs. 2,200,000Rs. 100,000 — 183,333/moRs. 1,200,001 to Rs. 2,200,000 — Rs. 30,000 + 15% of amount exceeding Rs. 1,200,000
#4Rs. 2,200,001 — Rs. 3,200,000Rs. 183,333 — 266,667/moRs. 2,200,001 to Rs. 3,200,000 — Rs. 180,000 + 25% of amount exceeding Rs. 2,200,000
#5Rs. 3,200,001 — Rs. 4,100,000Rs. 266,667 — 341,667/moRs. 3,200,001 to Rs. 4,100,000 — Rs. 430,000 + 30% of amount exceeding Rs. 3,200,000
#6Exceeding Rs. 4,100,001> Rs. 341,667/moExceeding Rs. 4,100,000 — Rs. 700,000 + 35% of amount exceeding Rs. 4,100,000

10% Surcharge for High Earners (Finance Act 2024/2025):

A 10% super-tax surcharge is levied on the computed income tax for individuals whose annual taxable income exceeds Rs. 10,000,000 (10 Million PKR).

Official Guidelines: Salary Taxation in Pakistan (Income Tax Ordinance 2001)

Under Section 12 and Section 149 of the Income Tax Ordinance, 2001, tax on salary income is withheld by employers on a monthly pay-as-you-earn (PAYE) basis. Salaried individuals are classified under the progressive slab system outlined in Division I of Part I of the First Schedule.

Tax-Exempt Allowances & Legal Deductions

1. Medical Allowance Exemption

Under Clause 139 of Part I of the Second Schedule, medical allowance up to 10% of basic salary is fully exempt from income tax.

2. Recognized Provident Fund (RPF)

Contributions by the employee to recognized provident funds and statutory pension schemes qualify for relevant tax credits.

3. EOBI Statutory Contributions

Statutory monthly contribution of 1% of minimum wage (Rs. 370/mo) safeguards retirement pension rights.

4. Voluntary Pension System (VPS)

Individuals can claim direct tax credit on contributions to approved voluntary pension funds under Section 63.

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