What are the income tax slabs in Pakistan for 2025-26?

Slabs are set in the annual Federal Budget and implemented by FBR. This tool uses FY 2025-26 salaried rates, for example 0% up to PKR 600,000, then progressive brackets rising through higher income bands. Rates and thresholds can change with each Finance Act, so always verify the current slab table directly at FBR.gov.pk or with a registered tax practitioner before filing.

EOBI stands for Employees' Old-Age Benefits Institution, a mandatory social security scheme covering many workers in the formal private sector. The employee contribution is a fixed monthly amount rather than a percentage of salary. For most enrolled workers the rate has been PKR 370 per month in recent years, but you should confirm the current figure on EOBI.org.pk as it can be revised by regulation.

Are freelancers taxed differently?

Yes. FBR-registered freelancers earning income through qualifying IT exports may be eligible for a reduced final tax on foreign remittance rather than the standard salaried slabs. The applicable rate and conditions are defined in the current Finance Act and associated FBR circulars. Rules have changed in successive budgets, so check the latest FBR notification or consult a tax advisor for your specific case.

Does provident fund reduce my tax?

Employee contributions to a recognized provident fund are generally deductible from taxable income under Pakistan's tax rules, which can meaningfully reduce the income tax calculated on your gross salary. The exact deductibility rules depend on whether your employer's fund is recognized under the Income Tax Ordinance. Confirm the treatment with your employer's payroll or HR department.

Pakistan Take-Home Pay Calculator (FY 2025-26)

Net salary after Income Tax and EOBI for salaried workers, plus a freelancer mode with FBR-aligned slabs.

How this tool works

The Pakistan take-home pay calculator applies current-year FBR salaried income tax slabs to compute monthly net pay. Tax is calculated on annual gross salary after subtracting any employee provident fund contribution, using a progressive slab structure where only the income within each band is taxed at its marginal rate -- not the full salary at the highest applicable rate. EOBI (Employees' Old-Age Benefits Institution) applies a flat monthly deduction for covered employees. For IT-sector employees declaring qualifying foreign-source income, the tool applies the reduced incentive rate published in the relevant finance act. Annual tax liability is divided by 12 for the monthly deduction. Key assumption: the tool models federal FBR income tax only; provincial income tax is not included and would reduce take-home pay further. Edge case: bonus payments and one-time lump sums in a single month spike the annualized equivalent salary into a higher slab, resulting in elevated income tax for that month only. To estimate the tax on a bonus, enter annual base salary plus the full bonus amount as the annual gross; the difference in annual tax between the base-only calculation and the base-plus-bonus calculation is the incremental tax attributable to the bonus.

Slabs follow the Finance Act 2025 / FBR salary card for FY 2025-26. EOBI employee share is PKR 370/month unless you disable it. Not tax advice, confirm with payroll or a chartered accountant.

Worked example

On PKR 1,800,000 salaried with EOBI enabled and no provident fund, income tax lands near PKR 72,000 for FY 2025-26, plus PKR 4,440 EOBI annually, monthly take-home is roughly PKR 143,600 before other employer deductions.

Frequently asked questions

What are the income tax slabs in Pakistan for 2025-26?
Slabs are set in the annual Federal Budget and implemented by FBR. This tool uses FY 2025-26 salaried rates, for example 0% up to PKR 600,000, then progressive brackets rising through higher income bands. Rates and thresholds can change with each Finance Act, so always verify the current slab table directly at FBR.gov.pk or with a registered tax practitioner before filing.
What is EOBI?
EOBI stands for Employees' Old-Age Benefits Institution, a mandatory social security scheme covering many workers in the formal private sector. The employee contribution is a fixed monthly amount rather than a percentage of salary. For most enrolled workers the rate has been PKR 370 per month in recent years, but you should confirm the current figure on EOBI.org.pk as it can be revised by regulation.
Are freelancers taxed differently?
Yes. FBR-registered freelancers earning income through qualifying IT exports may be eligible for a reduced final tax on foreign remittance rather than the standard salaried slabs. The applicable rate and conditions are defined in the current Finance Act and associated FBR circulars. Rules have changed in successive budgets, so check the latest FBR notification or consult a tax advisor for your specific case.
Does provident fund reduce my tax?
Employee contributions to a recognized provident fund are generally deductible from taxable income under Pakistan's tax rules, which can meaningfully reduce the income tax calculated on your gross salary. The exact deductibility rules depend on whether your employer's fund is recognized under the Income Tax Ordinance. Confirm the treatment with your employer's payroll or HR department.