Income Tax Slabs FY 2025-2026

In Pakistan, income tax is levied on individuals and businesses based on their taxable income. Taxable income is the total income earned during a tax year, minus any deductions and exemptions that are allowed under the tax laws. Income tax rates in Pakistan are progressive, meaning that higher income levels are taxed at higher rates.

The recent modifications to income tax brackets for employed individuals, as outlined in the federal budget for the fiscal year 2025-26, proposed some changes in tax slabs. Effective July 1, 2025, individuals with annual taxable incomes exceeding Rs. 600,000 will be subject to a higher income tax rate.

  1. Where the taxable salary income does not exceed Rs. 600,000, the rate of income tax is 0%.
  2. Where the taxable salary income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000, the rate of income tax is 2.5% of the amount exceeding Rs. 600,000.
  3. Where the taxable salary income exceeds Rs. 1,200,000 but does not exceed Rs. 2,200,000, the rate of income tax is Rs. 6,000 + 11% of the amount exceeding Rs. 1,200,000.
  4. Where the taxable salary income exceeds Rs. 2,200,000 but does not exceed Rs. 3,200,000, the rate of income tax is Rs. 116,000 + 23% of the amount exceeding Rs. 2,200,000.
  5. Where the taxable salary income exceeds Rs. 3,200,000 but does not exceed Rs. 4,100,000, the rate of income tax is Rs. 346,000 + 30% of the amount exceeding Rs. 3,200,000.
  6. Where the taxable salary income exceeds Rs. 4,100,000, the rate of income tax is Rs. 616,000 + 35% of the amount exceeding Rs. 4,100,000.

Sales Tax Calculator Pakistan

A sales tax calculator is a tool used to calculate the sales tax on a purchase in Pakistan. Sales tax is a tax levied on the sale of goods and services, typically added to the price of the goods or services being purchased.

In Pakistan, sales tax is levied at the federal and provincial levels. The federal government levies a general sales tax (GST) at a rate of 18% on most goods and services, while the provincial governments impose their own sales taxes at varying rates.

To use a sales tax calculator in Pakistan, you will need to know the following information:

  1. The total price of the goods or services being purchased.
  2. The applicable sales tax rate. This can be found by adding the federal GST rate of 18% and the applicable provincial sales tax rate.

To calculate the sales tax on a purchase in Pakistan, you can use the following formula:

Total sales tax = Total price x (Sales tax rate / 100)

For example, if you are purchasing goods for PKR 100,000 and the applicable sales tax rate is 18%, the total sales tax would be calculated as follows:

Total sales tax = 100,000 x (18 / 100) = PKR 17,000

It is essential to note that sales tax rates and regulations can change periodically, so it is always advisable to consult with a tax professional or refer to the relevant government agency for the most up-to-date information.

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