FBR Income Tax Ordinance 2001
Pakistan Income Tax Calculator (Tax Year 2026 & 2027)
Instantly calculate your income tax liability, monthly withholding deductions, and take-home pay according to official Federal Board of Revenue (FBR) tax slabs. Verified for salaried individuals, business owners, AOPs, and companies.
Slabs include statutory standard tax rates under the Finance Act. Actual payable tax may be lowered by eligible tax rebates, donations to approved charities, and full-time teacher allowances.
Calculation Summary
Annual Tax Payable
Rs 39,000
Total statutory tax for full fiscal year
Monthly Withholding
Rs 3,250
Deducted from monthly pay slip
Monthly Take-Home
Rs 146,750
Net disposable monthly earnings
Effective Tax Rate
2.2%
Average percentage paid on gross income
Applied FBR Slab: Rs 6,000 + 11% of the amount exceeding Rs 1,200,000
Statutory Schedule
Official FBR Income Tax Slabs (Tax Year 2026)
Complete schedule of rates as legislated in the Income Tax Ordinance 2001 (First Schedule, Division I).
1. Salaried Individuals Slabs (Where salary exceeds 75% of taxable income)
| Taxable Income Bracket (PKR) | Fixed Base Tax | Tax Rate | Statutory Formula |
|---|---|---|---|
| Up to Rs 600,000 | Rs 0 | 0% | Nil |
| Rs 600,001 to Rs 1,200,000 | Rs 0 | 1% | 1% of the amount exceeding Rs 600,000 |
| Rs 1,200,001 to Rs 2,200,000 | Rs 6,000 | 11% | Rs 6,000 + 11% of the amount exceeding Rs 1,200,000 |
| Rs 2,200,001 to Rs 3,200,000 | Rs 116,000 | 23% | Rs 116,000 + 23% of the amount exceeding Rs 2,200,000 |
| Rs 3,200,001 to Rs 4,100,000 | Rs 346,000 | 30% | Rs 346,000 + 30% of the amount exceeding Rs 3,200,000 |
| Exceeding Rs 4,100,000 | Rs 616,000 | 35% | Rs 616,000 + 35% of the amount exceeding Rs 4,100,000 |
2. Business Individuals & Association of Persons (AOP) Slabs
| Taxable Income Bracket (PKR) | Fixed Base Tax | Tax Rate | Statutory Formula |
|---|---|---|---|
| Up to Rs 600,000 | Rs 0 | 0% | Nil |
| Rs 600,001 to Rs 1,200,000 | Rs 0 | 15% | 15% of the amount exceeding Rs 600,000 |
| Rs 1,200,001 to Rs 1,600,000 | Rs 90,000 | 20% | Rs 90,000 + 20% of the amount exceeding Rs 1,200,000 |
| Rs 1,600,001 to Rs 3,200,000 | Rs 170,000 | 30% | Rs 170,000 + 30% of the amount exceeding Rs 1,600,000 |
| Rs 3,200,001 to Rs 5,600,000 | Rs 650,000 | 40% | Rs 650,000 + 40% of the amount exceeding Rs 3,200,000 |
| Exceeding Rs 5,600,000 | Rs 1,610,000 | 45% | Rs 1,610,000 + 45% of the amount exceeding Rs 5,600,000 |
Statutory Penalty Avoidance
Withholding Tax Comparison: Active Filer vs Non-Filer
Pakistan's tax regime enforces substantial financial penalties against non-filers. Maintaining Active Taxpayer status on the ATL prevents excessive tax deductions.
| Transaction Category | Active Taxpayer (ATL Filer) | Non-Filer Rate | Potential Financial Impact |
|---|---|---|---|
| Vehicle Purchase & Registration | Standard statutory rate | 100% to 200% Surcharge | Non-filers pay hundreds of thousands extra upon vehicle delivery. |
| Purchase of Immovable Property (Sec 236K) | 3% adjustable advance tax | 10.5% (More than triple) | On a 3 Crore property, non-filers lose an extra Rs 2,250,000 in unrecoverable tax. |
| Sale of Immovable Property (Sec 236C) | 3% advance tax | 10.5% | Massive deduction on property transfer registration. |
| Cash Withdrawals from Banks (Sec 231AB) | 0% (Exempt) | 0.6% on sums > Rs 50,000 | Recurring banking penalty levied on all over-the-counter cash withdrawals. |
| Dividend Income From Companies | 15% withholding | 30% (Double deduction) | Halves dividend yield for non-compliant investors. |