Pakistan Income Tax Calculator 2026 & 2027

Calculate your estimated income tax for Tax Year 2026 or 2027 — for salaried individuals and business individuals/AOPs in Pakistan, based on official FBR tax slabs.

How Income Tax is Calculated in Pakistan

Pakistan's income tax system uses progressive slab rates — the more you earn, the higher percentage you pay on income above each threshold. FBR applies separate slab structures for salaried individuals and business individuals/AOPs, since salaried income is taxed at generally lower rates to account for the absence of business deductions.

Tax Year 2026 (July 2025–June 2026) follows the slabs notified under the Finance Act 2025. Tax Year 2027 reflects the Finance Bill's proposed changes — salaried rates are reduced across most brackets, while business/AOP rates remain unchanged. Salaried individuals earning above Rs. 10 million also faced a 9% surcharge in TY2026, which has been proposed for removal in TY2027; business individuals and AOPs continue to face a 10% surcharge above the same threshold in both years.

This calculator gives an estimate only — your actual liability may differ based on tax credits, exemptions (such as for freelancers/IT exporters under SRO 586), and specific deductions. Contact Irshad & Co. for a precise assessment of your situation.

Frequently Asked Questions

Is this calculator accurate for Tax Year 2027?

Tax Year 2027 rates reflect the Finance Bill's proposed slabs. These may be subject to final parliamentary approval before the tax year begins. We recommend confirming with Irshad & Co. closer to the filing period for final figures.

What's the difference between salaried and business individual tax rates?

Salaried individuals are taxed at lower rates because their income tax is deducted at source with limited scope for expense deductions. Business individuals and AOPs face higher rates but can claim business expenses against their income before tax is calculated.

Does this calculator include withholding tax already deducted?

No. This calculator estimates your total annual tax liability. Any withholding tax already deducted during the year (on salary, contracts, or bank profit) is adjusted against this figure when you file your return — it doesn't change the total liability itself.

What if my income changes during the year?

This calculator assumes a fixed annual income. If your income varies significantly, use advance tax provisions under Section 147, and consult Irshad & Co. for accurate quarterly estimates.

Can freelancers and IT exporters use this calculator?

Freelancers and IT exporters may qualify for income tax exemption on export income under SRO 586, which this general calculator does not account for. Contact us for a tailored assessment.

Need Help With Your Actual Tax Filing?

This calculator gives you an estimate — Irshad & Co. handles your complete income tax return filing, accurately and on time.

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