1 July 2025 – 30 June 2026. Single-source individual estimate. No filing or payment is made.
What to enter
The exemption and rate depend on the source of pension and the selected year. This calculator covers one ordinary former-employer pension in the confirmed scenario. Multiple pensions, continued work for the employer or associate, voluntary pension schemes, gratuity, commutation, survivor pensions and other income need separate review.
Tax year 2026: applicable rules
Finance Act 2025 reduced salary rates, introduced separate former-employer pension tax, and changed the salary surcharge to 9%. The statutory salary bases at PKR 3.2m and PKR 4.1m are PKR 346,000 and PKR 616,000.
| Annual income band / condition | Calculation |
|---|---|
| Annual pension up to PKR 10,000,000 | 0 |
| Above PKR 10,000,000; age below 70 | 5% of the excess above PKR 10,000,000 |
| Age 70 or over | Exempt in the eligible scenario |
This restricted pension calculation does not add normal-slab surcharge to the separate former-employer pension tax.
A worked example for TY2026
For an eligible 60-year-old with PKR 12,000,000 annual ordinary former-employer pension, the estimated tax is PKR 100,000.
What the estimate excludes
No withholding adjustment, tax credits, minimum tax, final/separate tax regimes, special exemptions, losses or super tax is computed. The tool stops above PKR 150 million. A monthly equivalent is annual estimated tax divided by 12, not a payroll withholding schedule. Results display two decimal places; filing-rounding rules are not applied automatically.
Sources and verification
Income Tax Ordinance, 2001: First Schedule Part I Division I; section 4AB; section 12(2A), Second Schedule Part I and pension proviso. Finance Act 2025 / Ordinance edition 31 July 2025 — official FBR PDF. FBR legislation library.
Source/code checked 21 October 2026. Educational estimate; not represented as an independent professional tax review. Confirm current law and your full facts before filing.
Common questions
Can I use this for a different tax year?
Use the year links above. Each normal tax year has its own period and applicable table.
Is this my final tax bill?
No. The result covers only the stated scenario. Withholding, other income, credits and special rules can change your return.
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