Income Tax Calculator Pakistan
Calculate income tax for business income, freelance earnings, or AOP income using FBR's latest 2025-26 non-salaried tax slabs.
For business income, freelance, AOP. For salary, use Salary Tax Calculator.
How to use this calculator
- Enter your total annual income from all non-salary sources
- Click "Calculate Tax" to see your tax liability
- View the slab applied, effective rate, and net income
- Use this for tax planning and annual return filing
Real-world examples
Frequently asked questions
Who pays income tax in Pakistan?
All Pakistani residents whose annual income exceeds Rs. 600,000 must pay income tax. This includes salary, business income, rental income, capital gains, and freelance earnings. Non-residents are taxed only on Pakistan-sourced income.
What's the difference between salary tax and income tax?
Salary tax (lower rates) applies to employees with formal employment. Income tax (higher rates) applies to business owners, freelancers, AOPs, and self-employed. Mixed income (salary + business) is calculated separately.
Are freelancers taxed in Pakistan?
Yes, freelancers earning above Rs. 600,000 annually must pay income tax under non-salaried slabs. However, IT exports earned via PSEB-registered companies enjoy 0.25% concessional rate till 2026.
What is the tax-free income limit?
Annual income up to Rs. 600,000 is tax-free for both salaried and non-salaried individuals in FY 2025-26. Above this, tax slabs apply progressively.
What is AOP (Association of Persons)?
AOP is when 2+ people pool resources for business without forming a company. Common examples: family businesses, partnerships. AOP is taxed as a single entity using non-salaried tax slabs.
How can I save income tax legally in Pakistan?
Invest in Voluntary Pension System (VPS) for tax credit, donate to approved charities, claim tax credit on Zakat paid, deduct legitimate business expenses, register as a Filer for benefits, and claim depreciation on business assets.
When is the tax filing deadline in Pakistan?
For individuals and AOPs, the deadline is typically September 30th for the previous fiscal year (July-June). Companies file by December 31st. FBR may extend deadlines, so check IRIS portal for updates.
What happens if I don't file tax return?
You become a Non-Filer. Penalties: higher tax rates on bank transactions (40% on cash withdrawal above Rs. 50,000), higher token tax on vehicles, 50% extra advance tax on property, and you can be audited or fined. Filers get major discounts.