Pakistan Income Tax Calculator 2026-27: Salary & Business Guide
Learn how to calculate Pakistan income tax for 2026-27 using the free FBR-aligned estimator. Covers salaried and business income, tax slabs, effective rates, and take-home income, with step-by-step examples.
Figuring out your Pakistan income tax shouldn't require a spreadsheet or a trip to your accountant. This guide explains how to use the free Pakistan Income Tax Calculator for 2026-27, covers the FBR tax slabs for salaried and business income, and walks through practical examples so you can estimate your liability in minutes.
What Is the Pakistan Income Tax Calculator?
The Pakistan Income Tax Calculator is a free, FBR-aligned tool that estimates your annual and monthly income tax, effective tax rate, and after-tax income based on the income type and amount you enter. It requires no signup, no CNIC, and no account creation — just enter your income and get an instant estimate.
It supports two income categories:
- Salaried income — for employees receiving a regular salary subject to monthly PAYE withholding
- Business income — for self-employed individuals, sole proprietors, and business owners assessed under normal or minimum tax rules
Pakistan Income Tax Slabs 2026-27
Salaried Income Tax Slabs
Pakistan uses a graduated tax slab system for salaried individuals, set by the Federal Board of Revenue (FBR). The slabs start at 0% for annual income up to PKR 600,000 and rise through several brackets at higher income levels.
For a quick estimate at any income level, use the income tax calculator rather than manually working through each slab.
Business Income Tax
Business income is assessed differently from salaried income. Depending on turnover, sector, and applicable exemptions, a business person may be subject to normal income tax, minimum tax, or alternative corporate tax rules. The calculator handles the business income path when you select that option.
How to Use the Pakistan Income Tax Calculator
- Go to the Pakistan Income Tax Calculator
- Select your income type — Salaried or Business
- Enter your annual or monthly income in the field shown
- Click calculate — the tool instantly shows:
- Estimated annual tax
- Estimated monthly tax
- Effective tax rate
- After-tax income
No additional inputs are required for a planning estimate.
Example: Calculating Tax on a PKR 100,000 Monthly Salary
If you earn PKR 100,000 per month, your annual income is PKR 1,200,000.
- Open the income tax calculator
- Select Salaried income
- Enter PKR 1,200,000 as annual income
- Review the output — you will see estimated annual tax, the applicable slab, monthly tax deduction, effective rate, and take-home income
Use the monthly tax figure to understand your monthly take-home and compare it against your current payslip deduction.
What Is a Business Income Tax Calculator for Pakistan?
A business income tax calculator for Pakistan estimates the tax liability for self-employed individuals and business owners under FBR rules. Unlike salaried income (which is withheld monthly by an employer), business income tax is typically self-assessed and filed annually.
The DevTool House income tax calculator handles both salaried and business income. Switch to the Business income option to estimate tax on profits from a sole proprietorship, freelance practice, or other self-employment income.
Salaried vs Business Income: Key Tax Differences
| Factor | Salaried Income | Business Income |
|---|---|---|
| Collection method | Monthly withholding by employer | Self-assessed, filed annually |
| Tax table used | Salaried person slab table | Business income / normal tax rules |
| Minimum tax | Generally not applicable | May apply depending on turnover |
| Record-keeping | Payslips from employer | Invoices, expense records, books |
Effective Tax Rate vs Marginal Tax Rate
Two figures often cause confusion when reading a tax estimate:
- Marginal tax rate — the rate applied to the last (highest) rupee of your income. If you fall into a 20% slab, that rate applies only to the portion of income within that bracket.
- Effective tax rate — your total tax divided by your total income, expressed as a percentage. It is always lower than the marginal rate and reflects your true average tax burden.
The calculator shows both the applicable slab and the effective rate so you can understand the difference for your specific income level.
After-Tax Income Planning
Once you have your estimated tax, you can use it for practical planning:
- Payroll budgeting — if you manage payroll, use the monthly tax estimate to verify PAYE withholding against employee salary ranges
- Project pricing — freelancers and consultants can add their estimated monthly tax burden into their rate calculation using the Freelance Rate Calculator
- Cash flow planning — business owners can set aside estimated monthly tax liability throughout the year to avoid a lump-sum payment at filing time
Frequently Asked Questions
Can I use this as a business income tax calculator for Pakistan?
Yes. Choose the business income option to estimate tax on business or self-employment income. The calculator handles both salaried and business income in a single tool, applying FBR-aligned rates for each income type.
What are the Pakistan income tax slabs for 2026-27?
For salaried individuals, graduated tax slabs set by the FBR apply — starting at 0% for income up to PKR 600,000 per year and rising at higher income levels. Use the calculator for a quick estimate, then verify the exact current-year slabs at fbr.gov.pk before making payroll or filing decisions.
What is the difference between salaried and business income tax in Pakistan?
Salaried income uses the salaried-person tax table with monthly PAYE withholding by the employer. Business income may be assessed under normal tax or minimum tax rules depending on turnover, sector, and applicable exemptions.
How do I calculate tax on a PKR 100,000 monthly salary?
Enter PKR 1,200,000 as your annual income (100,000 × 12), choose salaried income, and run the calculator. The result shows your estimated annual and monthly tax, effective rate, and after-tax monthly take-home.
Does this replace professional tax advice?
No. It is a planning calculator. Use it to understand likely tax impact, then verify important decisions with official FBR rules or a qualified tax professional before filing.
Where can I verify Pakistan income tax rules?
The Federal Board of Revenue publishes current tax slabs, forms, and guidance at fbr.gov.pk. Always confirm the current year's slab before making payroll decisions or filing a return.
Use the Pakistan Income Tax Calculator to get your free estimate now — no signup required.