Calculate your exact salary income tax for Tax Year 2025-26 — instantly and free.
This calculator automatically applies the medical allowance exemption (10% of basic salary) under Clause 139, Second Schedule, ITO 2001, and uses the latest tax slabs notified by FBR under Finance Act 2025. For salaries above Rs. 10 million annually, the 9% surcharge (Slab VII) is also applied automatically.
Just enter your gross monthly salary — everything else is calculated for you.
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ITO 2001 · Second Schedule · Tax Year 2026
Free Tax Tool · Pakistan
Salary Tax Computation Calculator
Income Tax Ordinance 2001 — Second Schedule (Finance Act 2025) · Tax Year 2026
Verified against FBR Official Slab Rates
Enter Your Gross Monthly Salary
Rs.
✓ Medical Allowance (10% of Basic) automatically exempt — Clause 139, Second Schedule ITO 2001
✓ Basic = Gross ÷ 1.1 | Medical = Gross − Basic | Taxable = Basic × 12
Gross Monthly
—
Basic + Medical
Taxable Monthly
—
Net of Medical (Basic)
Tax Monthly
—
Deducted by employer
Net Take-Home
—
After tax deduction
⚠️
Surcharge — Slab VII: Annual taxable income exceeds Rs. 10,000,000. Additional 9% surcharge on total tax applies. Employer must withhold surcharge as well.
Surcharge Annual: — | Surcharge Monthly: —
Surcharge Annual: — | Surcharge Monthly: —
Detailed Tax Computation
Tax Year 2026
| Particulars | Monthly (Rs.) | Annual (Rs.) | Remarks |
|---|---|---|---|
| A — Salary Breakdown | |||
| Gross Monthly Salary (as entered) | — | — | User Input |
| Less: Medical Allowance (10% of Basic) | — | — | Exempt — Clause 139 |
| Net of Medical Allowance (Basic Salary) | — | — | Gross ÷ 1.1 |
| B — Taxable Income | |||
| Net of Medical (Monthly) | — | — | Basic Salary |
| Taxable Annual Income | — | — | Basic × 12 |
| C — Tax Slab Computation (ITO 2001, Second Schedule) | |||
| Applicable Tax Slab | — | — | |
| Slab Start — Slab End | — | — | Annual range |
| Amount Exceeding Slab Start | — | — | Taxable − Slab Start |
| Exceeding Amount × Slab Rate | — | — | Tax on exceeding portion |
| Fixed Tax (Below The Line — BTL) | — | — | Per slab |
| Total Tax Liability | — | — | (Exceeding × Rate) + Fixed |
| E — Final Tax Liability | |||
| Total Income Tax Payable | — | — | Employer deducts monthly |
| F — Net Salary Computation | |||
| Gross Monthly Salary | — | — | Before tax |
| Less: Monthly Tax Deduction | — | — | WHT by employer |
| Net Take-Home Salary | — | — | After tax |
| G — Effective Rate Summary | |||
| Effective Tax Rate | — | Annual Tax ÷ Annual Taxable | |
| Marginal Slab Rate | — | Rate on last rupee earned | |
Tax Slab Reference — Second Schedule, ITO 2001 (Finance Act 2025)
| Slab | Annual Taxable Income | Fixed Tax (BTL) | Slab Rate (ATL) | Tax Formula | |
|---|---|---|---|---|---|
| I | Up to Rs. 600,000 | Rs. 0 | 0% | Nil | |
| II | Rs. 600,001 – Rs. 1,200,000 | Rs. 0 | 1% | 1% × (Exceeding + 0) | |
| III | Rs. 1,200,001 – Rs. 2,200,000 | Rs. 6,000 | 11% | 11% × (Exceeding + 6,000) | |
| IV | Rs. 2,200,001 – Rs. 3,200,000 | Rs. 116,000 | 23% | 23% × (Exceeding + 116,000) | |
| V | Rs. 3,200,001 – Rs. 4,100,000 | Rs. 346,000 | 30% | 30% × (Exceeding + 346,000) | |
| VI | Above Rs. 4,100,000 | Rs. 616,000 | 35% | 35% × (Exceeding + 616,000) | |
| VII | Above Rs. 10,000,000 | Slab VI + | +9% Surcharge | Slab VI tax + 9% of total tax |
Legal Reference: Income Tax Ordinance 2001, Second Schedule, Part I — Salary Tax Rates, Tax Year 2026 (July 2025 – June 2026), as amended by Finance Act 2025. Medical Allowance exemption: Clause 139, Part I, Second Schedule — exempt up to 10% of Basic Salary. Formula: Gross Salary ÷ 1.1 = Net of Medical (Basic Salary). Taxable Income = Basic Salary × 12. Tax = (Amount Exceeding Slab + Fixed Tax) × Slab Rate. Surcharge (Slab VII): 9% of total salary tax where annual taxable income exceeds Rs. 10,000,000. Tax withheld by: Person responsible for paying salary (employer). Tax type: Adjustable Withholding Tax. This tool is for informational purposes. For official computation and tax filing, consult Trusty Consulting.