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The 75% salary testTax years 2024-25 to 2026-27

Mixed Income Tax Calculator Pakistan

With a salary and a business, rent or freelance income, your income is not taxed piece by piece. It is added into one taxable income, and one rate schedule applies to all of it: the salaried rates only if salary is more than 75% of that total, the steeper non-salaried rates otherwise.

Tax year

All amounts are for the whole tax year.

Gross, before tax, from all employers. Shorthand works: 30 lakh, 3m.

Business or professional income in Pakistan

Sales, fees or commission from clients in Pakistan.

Costs of earning that income (section 20).

Rental incomeRent from a house, flat, shop or plot

Section 15A(1)(c).

Section 15A(1)(b).

Section 15A(1)(d).

Section 15A(1)(e).

Income from foreign clientsExported services, paid into Pakistan

In rupees, as converted by your bank in Pakistan.

What you export
Exemptions and deductionsMedical allowance, Zakat, pension

Lowers taxable income (section 60) - and so can change the 75% test.

Gives a tax credit (section 63).

Tax already paidDeducted by employers, tenants, banks

Section 149, from your salary certificate.

Section 155. Adjustable against your tax for the year.

Section 231AB. Adjustable.

Section 236K. Adjustable.

Tax your bank deducted from export proceeds is worked out for you.

Your result will appear here

Enter your salary and any business, rental or export income for the year to see which rate schedule applies and the tax on all of it. Nothing you type leaves this page.

About this calculator

Who it is for
People with a salary plus business, rent or foreign freelance income.
What you need
Each kind of income for the year, your deductible amounts, and the tax already deducted.
What it works out
Which rate schedule applies under the 75% salary test, and the tax on all your income together.
Tax years
Tax years 2024-25 to 2026-27
Not covered
Capital gains and income from other sources.
After your result

How much tax on a PKR 3,000,000 salary plus PKR 1,000,000 of business profit in 2025-26?

PKR 970,000. Taxable income is PKR 4,000,000, and salary is exactly 75% of it — not more than 75% — so the non-salaried rates apply to the whole PKR 4,000,000.

Taxing the two separately would give PKR 360,000, which is not how the law works. And with one rupee more of salary and one less of profit, salary would be more than 75%: the salaried rates would then apply to everything, and the tax would be PKR 586,000.

What counts towards the 75% test

  • Salary, less exempt allowances such as the medical allowance.
  • Business or professional income — receipts less deductible expenses. A business loss cannot reduce salary or rental income (section 56(1)).
  • Rent, less the section 15A deductions such as the one-fifth repairs allowance. The rental income calculator shows the withholding on rent as well.
  • Export proceeds only under the normal regime. Where the bank’s section 154A deduction is your final tax, the proceeds stay outside taxable income. See the freelancer tax calculator.
  • Zakat lowers taxable income (section 60), which raises salary’s share of it.

Both full slab tables are compared side by side in salaried vs non-salaried tax rates.

The surcharge above PKR 10 million

Section 4AB adds a 10% surcharge to the tax where taxable income is more than PKR 10 million, with a lower rate for an individual deriving salary income (9% in 2025-26, none from 2026-27). The Ordinance does not say how that applies when salary is a minority of income. This calculator gives the salaried treatment only where the salaried rates apply, and shows the figure on the other reading whenever it would differ.

Mixed income FAQs

No. Salary, business profit and net rent are added into one taxable income, and one rate schedule is applied to all of it. Which schedule depends on the 75% test: the salaried rates only where salary is more than 75% of taxable income, otherwise the non-salaried rates on the whole amount - salary included.

That is why a side income can cost more than the tax on the side income alone: crossing the line moves your salary onto the steeper schedule too.

Then the non-salaried rates apply. The First Schedule uses the salaried table only where salary "exceeds" 75% of taxable income, so exactly 75% does not qualify.

Yes. Since the Finance Act 2021, rent received by an individual is taxed as income from property at the normal rates, so the net figure after the section 15A deductions - such as the one-fifth repairs allowance - is part of taxable income.

Only if it is taxed under the normal regime. Where the section 154A(2) conditions are met, the 0.25% or 1% your bank deducts is a final tax, and income subject to final tax is left out of taxable income (section 4(5)) - so it does not affect the 75% test. If you do not meet the conditions, or opt out, the proceeds are business income and do count.

No. Section 56(1) does not allow a loss to be set off against salary income, and a business loss cannot be set off against income from property either. It can reduce other business income in the same year, and may be carried forward under section 57.

Sources and updates

Income Tax Ordinance 2001, amended up to 30 June 2026: First Schedule, Part I, Division I, paragraphs (1) and (2); taxable income and heads of income under sections 9 to 11; income from property under sections 15 and 15A; set-off of losses under section 56; surcharge under section 4AB; export of services under section 154A; credits under sections 63 and 168.

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Tax Pakistan is an independent site, not part of FBR or any government body. Where a figure matters — a return, a refund claim, a dispute — confirm it against the official source or with a tax adviser.