How to use this calculator
Step 1 — Enter your annual gross salary. Add up your basic salary plus all regular allowances and expected bonuses for the full tax year (1 July 2026 – 30 June 2027), in PKR.
Step 2 — Choose whether to deduct EOBI. EOBI pension (≈Rs 400/month) mainly applies to lower-salaried staff in establishments with 5+ workers — leave it off if it doesn't apply to you.
Step 3 — Hit "Calculate Net Pay". The calculator applies the Finance Act 2026 slabs to your annual income, then divides by 12 — that's roughly what your employer withholds each month. Remember the 10% surcharge on salaried income was abolished from 2026-27, so older calculators will show higher tax than this one.
How income tax on salary works in Pakistan
Pakistan taxes salaried individuals on their annual gross salary under the Income Tax Ordinance 2001. Your employer deducts roughly one-twelfth of the annual tax from each month's pay. The Finance Act 2026 lowered the salaried slabs and abolished the extra surcharge for salaried individuals.
| Annual income (PKR) | Tax |
|---|
| 0 – 600,000 | 0% |
| 600,001 – 1,200,000 | 1% of excess over 600,000 |
| 1,200,001 – 2,200,000 | Rs 6,000 + 11% of excess over 1,200,000 |
| 2,200,001 – 3,200,000 | Rs 116,000 + 20% of excess over 2,200,000 |
| 3,200,001 – 4,100,000 | Rs 316,000 + 25% of excess over 3,200,000 |
| 4,100,001 – 5,600,000 | Rs 541,000 + 29% of excess over 4,100,000 |
| 5,600,001 – 7,000,000 | Rs 976,000 + 32% of excess over 5,600,000 |
| Above 7,000,000 | Rs 1,424,000 + 35% of excess over 7,000,000 |
On top of income tax, employees may pay EOBI (pension) — 1% of the provincial minimum wage, e.g. Rs 400/month in Punjab and Rs 430/month in Sindh. It mainly applies to lower-salaried staff in establishments with 5+ workers, so the calculator keeps it optional.
Read our full guide: How income tax works in Pakistan.
Worked examples
Example 1 — Rs 150,000/month (Rs 1,800,000/year): falls in the 1.2M–2.2M band: Tax = 6,000 + 11% × 600,000 = Rs 72,000/year (Rs 6,000/mo). EOBI ≈ Rs 400/mo (Punjab). Take-home = 150,000 − 6,000 − 400 = Rs 143,600/month.
Example 2 — Rs 500,000/month (Rs 6,000,000/year): falls in the 5.6M–7M band: Tax = 976,000 + 32% × 400,000 = Rs 1,104,000/year (Rs 92,000/mo). EOBI ≈ Rs 400/mo. Take-home = 500,000 − 92,000 − 400 = Rs 407,600/month.
Common mistakes
1. The old surcharge. Finance Act 2026 abolished the 10% surcharge for salaried individuals — old calculators still add it.
2. Old slab edges. The 2026 slabs reshuffled several bands; using 2024-25 tables misplaces income by a full bracket.
3. EOBI on the full salary. EOBI is 1% of the provincial minimum wage (≈Rs 400/month), not 1% of your salary — a small line, but a common error.
Sources & verification
Figures compiled from: Federal Board of Revenue (FBR) — Finance Act 2026.
Last verified: 23 October 2026.
Pakistan salary FAQs
How is salary tax calculated in Pakistan in 2026?
Under the Finance Act 2026 (Tax Year 2027), the first Rs 600,000 of annual salary is tax-free. Above that, progressive slabs apply from 1% up to 35% on income above Rs 7,000,000.
What is the take-home pay on a Rs 2,400,000 salary?
Income tax = Rs 116,000 + 20% of (2,400,000 − 2,200,000) = Rs 156,000/year ≈ Rs 13,000/month, before EOBI. Monthly take-home ≈ Rs 187,000.
What is EOBI deduction?
EOBI is 1% of the provincial minimum wage — Rs 400/month in Punjab, Rs 430/month in Sindh, Rs 407/month in Islamabad. It mainly applies to lower-salaried staff.
Is overtime taxed in Pakistan?
Yes — overtime, bonuses and allowances are part of taxable salary income, taxed at your slab rate.