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Salaried employees · FY 2025-26 · Pakistan tax guide

Your employer deducts tax.
You still need to file a return.

Over 10 million salaried employees in Pakistan don't file annual tax returns — assuming their employer has handled everything. They haven't. Filing is mandatory, refunds are common, and ATL status saves thousands on every property and banking transaction.

WHT refund claims Most salaried employees overpay WHT — the only way to get money back is to file
ATL saves 2× surcharge Filing eliminates the non-filer doubling of withholding tax on banking, property, and vehicles
Visa applications UK, US, Canada, UAE visas increasingly require 3 years of filed returns
Bank loans & credit Home loans and car financing require tax return as proof of income
Property purchases Non-filer surcharge on property: up to PKR 200,000+ extra on a PKR 1 crore purchase
FY 2025-26 income tax slabs

How much tax do you actually owe?

Pakistan salaried income tax for FY 2025-26 (July 2025 – June 2026). These are the rates your employer should be using for monthly WHT deductions.

Annual Salary (PKR) Marginal Rate Tax Calculation Who this affects
Up to PKR 600,000 0% Nil No tax — fully exempt
PKR 600,001 – 1,200,000 5% On excess First taxable slab — most entry-level
PKR 1,200,001 – 2,400,000 15% PKR 30,000 + 15% on excess over 1.2M Mid-range salaried
PKR 2,400,001 – 3,600,000 25% PKR 210,000 + 25% on excess over 2.4M Senior professionals
PKR 3,600,001 – 6,000,000 30% PKR 510,000 + 30% on excess over 3.6M Management level
PKR 6,000,001 and above 35% PKR 1,230,000 + 35% on excess over 6M C-suite / high earners
Calculate my exact tax
How to file your salary return

Four steps from zero to filed.

1

Get your NTN

National Tax Number registration on FBR IRIS. Required if you don't already have one. We register it using your CNIC — takes 3–5 working days.

2

Gather documents

Salary certificate or 12 payslips, bank statements (all accounts), employer WHT certificate, CNIC. We send you a complete checklist.

3

We prepare your return

We calculate your exact tax liability, identify any refund, and prepare the income tax return and wealth statement for your review.

4

Filed on FBR IRIS

Return submitted on FBR IRIS. You receive the filed return and acknowledgement. ATL status updated within 3–7 days. Refund tracked and followed up.

WhatsApp your salary certificate to get started →
Common misconceptions

What HR told you vs. what FBR says.

✗ Myth

"My company deducts tax — I don't need to file."

Wrong. Employer WHT deduction does not substitute for personal filing. You must file your own return on FBR IRIS every year. Filing is how you claim back any excess WHT and how you prove your income for loans, visas, and property.

✓ Fact

Filing saves you real money on every bank transaction.

ATL filers pay half the withholding tax rate on bank transactions, property, and vehicles. On a PKR 50 lakh transaction, the difference between filer and non-filer rates is PKR 100,000+. Filing the return typically costs PKR 3,000–10,000. The maths is obvious.

✗ Myth

"I'll file next year when I earn more."

This delays ATL registration every year you wait. Non-filer surcharges accumulate on every transaction in the meantime. Late filing also attracts FBR penalties. Starting early means starting to save early.

✓ Fact

Missed years can be filed retroactively (up to 5 years).

If you haven't filed for 2–5 years, you can still file late returns. Penalties exist but are manageable. Getting into good standing proactively is far cheaper than waiting for FBR to send a notice with its own interest and penalties attached.

✗ Myth

"FBR won't notice if I don't file."

FBR has direct access to NADRA data, bank transaction reports, property registration data, and vehicle registration records. From 2024, their automated risk profiling flags non-filers with significant banking activity or property transactions.

✓ Fact

Filing gives you legal protection against FBR notices.

A filed return creates a legal record of your income declaration. If FBR later questions a transaction, a filed return explaining the income source is your first line of defence. Non-filers have no such protection — every unexplained transaction is a potential Section 111 notice.

Salaried employee tax questions

Your questions answered directly.

My employer deducts tax from my salary — do I still need to file?
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Yes. Even if your employer deducts withholding tax (WHT) from your salary each month, you are still required to file an annual income tax return on FBR IRIS. Filing is mandatory under the Income Tax Ordinance 2001. Additionally, filing is the only way to claim a refund if too much WHT was deducted — which is very common, especially in the second half of the tax year.
What is the benefit of being an Active Taxpayer (ATL)?
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Active Taxpayer List (ATL) status significantly reduces withholding tax rates. Non-filers pay 2× the WHT rate on banking transactions, property purchases, vehicle registration, and dividends. Filing your return and maintaining ATL status typically saves 1–3% on every major transaction. On a PKR 1 crore property purchase, that saving alone is PKR 200,000+.
I only have salary income — what documents do I need to file?
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You need: your CNIC number, salary certificate or payslips from your employer, bank statements showing salary credits and any other income, and any withholding tax certificates (Form 16 equivalent) your employer provides. If you received bonus payments or arrears, those are also included. We take care of the FBR IRIS submission once you provide these.
Can I get a refund on excess WHT my employer deducted?
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Yes. If your employer used a different tax rate than the annual slab table indicates — or if you changed jobs and your new employer recalculated independently — you may have overpaid. You must file a return to claim the refund. FBR processes refunds within 60–90 days of filing. We identify refund entitlements as part of every return we file.
I want to buy property or a car — how does my tax status affect this?
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Property purchases and vehicle registration trigger withholding tax for non-filers at 2× the standard rate. On a PKR 80 lakh car, the non-filer surcharge can be PKR 100,000+ extra. On property, it applies to both the buyer (advance tax) and the seller. Being an ATL filer eliminates these surcharges entirely.
My company's HR says I don't need to file — is that correct?
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No. This is one of the most common misconceptions in Pakistani corporate life. Employer withholding does not substitute for personal filing. FBR requires all persons with income above the taxable threshold to file. Filing also protects you from notices, enables refunds, and is increasingly required for visas, bank accounts, and tenders.
What if I have rental income or a side business alongside salary?
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All income must be declared together in one return. Rental income and business income are taxed differently from salary income. The combination may put you in a higher slab or trigger different withholding rates. We combine all income sources correctly and ensure you pay the minimum legally required tax with proper deductions applied.
I missed filing for 2–3 years — what should I do?
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You can file past years' returns (up to 5 years back in most cases). Late filing penalties apply but are manageable compared to the risk of FBR issuing a notice with penalties and interest. We prepare and file all outstanding years together, clear the backlog, and get you into good standing before FBR contacts you first.
10M+ salaried employees — most don't file

File your return in 48 hours.
Claim what your employer over-deducted.

Send us your salary certificate and CNIC. We prepare and file your return on FBR IRIS — you get ATL status, the protection of being on record, and any refund you're owed.

PKR 3,000–6,000 flat fee · 48-hr turnaround · ATL status in 7 days
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