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A Complete Guide to Salary Tax Calculation in Pakistan (FY 2024-25)

May 28, 2026 5 min read

The Federal Board of Revenue (FBR) in Pakistan adjusts income tax slabs periodically as part of national finance bills. For salaried employees, understanding how tax cuts are structured is crucial for managing household budgets.

FBR Salaried Slabs Breakdown (FY 2024-25 / Tax Year 2025)

Salaried taxation in Pakistan uses a progressive slab structure. Here are the active brackets for annual taxable income:

  • Up to Rs. 600,000: 0% Tax (Tax-free limit).
  • Rs. 600,000 to Rs. 1,200,000: 5% of amount exceeding Rs. 600,000.
  • Rs. 1,200,000 to Rs. 2,200,000: Rs. 30,000 + 15% of amount exceeding Rs. 1.2M.
  • Rs. 2,200,000 to Rs. 3,200,000: Rs. 180,000 + 25% of amount exceeding Rs. 2.2M.
  • Rs. 3,200,000 to Rs. 4,100,000: Rs. 430,000 + 30% of amount exceeding Rs. 3.2M.
  • Above Rs. 4,100,000: Rs. 700,000 + 35% of amount exceeding Rs. 4.1M.

How to Calculate Your Tax Manually

Let's take a monthly salary of Rs. 150,000. This translates to an annual salary of Rs. 1,800,000. This falls into Slab 3 (between Rs. 1.2M and Rs. 2.2M):

  1. Subtract Rs. 1,200,000 from your annual salary: Rs. 1,800,000 - Rs. 1,200,000 = Rs. 600,000.
  2. Calculate 15% of the excess: 15% of Rs. 600,000 = Rs. 90,000.
  3. Add the fixed tax for Slab 3: Rs. 90,000 + Rs. 30,000 = Rs. 120,000 annual tax.
  4. Monthly tax deduction: Rs. 120,000 / 12 = Rs. 10,000.

Instead of running manual calculations, you can use our Salary Tax Calculator to get detailed monthly and annual breakdowns instantly.