Every salaried employee in Pakistan wants to know one thing: how much tax will be deducted from their paycheck? This guide shows you exactly how to calculate your monthly income tax using FBR’s 2025-26 tax slabs, with clear step-by-step examples.
Step-by-Step Tax Calculation Method
Step 1: Find Your Annual Salary
Multiply your monthly gross salary by 12. Example: If monthly salary is PKR 100,000, annual salary = 100,000 x 12 = PKR 1,200,000.
Step 2: Identify Your Tax Slab
Look at the FBR 2025-26 tax slabs table and find which range your annual salary falls into. PKR 1,200,000 falls at the boundary of second slab (600,001 – 1,200,000).
Step 3: Calculate Annual Tax
Apply the formula for your slab. For PKR 1,200,000: Tax = 5% of (1,200,000 – 600,000) = 5% x 600,000 = PKR 30,000 per year.
Step 4: Divide by 12 for Monthly Tax
Monthly tax = Annual tax / 12 = 30,000 / 12 = PKR 2,500 per month.
Quick Reference: Common Salary Tax Table 2025-26
| Monthly Salary (PKR) | Annual Salary | Annual Tax | Monthly Tax | Take-Home |
| 30,000 | 360,000 | NIL | NIL | 30,000 |
| 50,000 | 600,000 | NIL | NIL | 50,000 |
| 60,000 | 720,000 | 6,000 | 500 | 59,500 |
| 80,000 | 960,000 | 18,000 | 1,500 | 78,500 |
| 100,000 | 1,200,000 | 30,000 | 2,500 | 97,500 |
| 150,000 | 1,800,000 | 120,000 | 10,000 | 140,000 |
| 200,000 | 2,400,000 | 230,000 | 19,167 | 180,833 |
| 300,000 | 3,600,000 | 550,000 | 45,833 | 254,167 |
| 500,000 | 6,000,000 | 1,015,000 | 84,583 | 415,417 |
What Components Are Included in Taxable Salary?
- Basic salary
- House rent allowance (HRA) — fully taxable
- Medical allowance — exempt up to 10% of basic salary
- Conveyance allowance — exempt up to PKR 2,500/month
- Bonuses and performance pay — fully taxable
- Leave encashment — taxable
How to Use PakCalc Salary Tax Calculator
Visit pakcalc.com.pk and scroll to the Salary Tax Calculator section. Enter your monthly gross salary, select your employment type, and click ‘Calculate Tax’. The calculator will instantly show your monthly tax, net take-home salary, and effective tax rate — all based on FBR 2025-26 slabs.
Note: Your employer deducts tax automatically every month. If you have additional income sources, you must declare them in your annual tax return.