Income Tax Calculator (FY 2023-24)
Calculate and compare your income tax under the Old and New Tax Regimes to find the best option for you.
Enter Your Financial Details
Deductions (for Old Regime)
Old Tax Regime
New Tax Regime
The Best Instructions on the Pakistani Income Tax Calculator (FY 2025-26)
Tax files are quite important for every adult citizen in Pakistan. As policy tends to change over time, the Old and New Tax Regimes can be frustrating. That is why an income tax calculator is a powerful tool that lets an individual analyse various options and determine tax liability rationally. This guide will analyse the Old and New Tax Regimes, corresponding tax slabs, and help you navigate through our sophisticated tax calculator for the financial year 2025-26 and Assessment Year 2025-26.
How Do You Submit Your Taxes Using an Income Tax Calculator?
This calculator helps users understand the difference and development between the old and more advanced tax policies:
Annual Tax Deductions, Gross Income, and Age Group Divide Any Income over 5 Lakhs
Gross Income Declaration Tax Return less
Expenses deducted from gross income
Put in the entire monetary figure that you expect to cash in within a year; this will be the total income starting from zero.
Pick Age Categories from the Following Options: 30, 40, 50, 60, 7,0, 80, 90
Enter Age,
Choose from the given age brackets as tax slabs are different for older people and those over a certain age in the old region, me aged over 65.
Enter Your Deductions: In this section, enter all the potential tax-saving investments and expenses you may incur. These are only applicable to the Old Tax Regime. Common deductions include:
80C: Investment iPPFPF, EPF, ELSS, life insurance premium, and other (Max. up to PKR 1.5 Lakh)
80D: Payment of medical insurance,
HRA: Claim for Tax Exemption on House Rent Allowance
Other Deductions: E.G. interest savings 80C of the IT, donations to charity 80G, etc.
View Your Results Immediately: The calculator does the math for you and provides your tax on both regimes and a comparison.
Detailed information is available for each regime: Gross Total Income, Deductions, Income Tax, Taxable Income, Surcharge (if applicable,d Cess, and the final Total Tax Payable.
The complete tax recommendation at the top summarises which regime is more beneficial and how much tax you can save.
The Old vs New Tax Regime: In-depth Analysis
The Old Tax Regime and New Tax Regime comparison is centred around the two regimes’ primary difference. The two regimens’ primary difference is the trade-off of lower taxes. The ability to claim deductions. Less claimable deductions in the Old Tax regime compared to the New Tax regime.
Old Tax Regime
Under the old regime, you are able to claim 70 different deductions and exemptions to help lower your taxable income. This works well for people who are making large tax-saving investments. The slabs are:
For Individuals below 60 years: Up to PKR 2.5 Lakh – No tax payment.
For Senior Citizens (60-80 years): Up to PKR 3 Lakh – No tax payment.
For Super Senior Citizens (Above 80 years): Up to PKR 5 Lakh – No tax payment.
New Tax Regime – Default Regime for FY 2025-26
The new regime simplifies and lowers the tax rate, but the most common deductions, such as HRA, 80C, and 80D, cannot be made. Still, the slabs are the same for all individuals regardless of age. Salaried individuals and pensioners are entitled to a Standard Deduction of PKR 50,000. These slabs are:
Up to PKR 3 Lakh: No tax
PKR 3 Lakh to PKR 6 Lakh: 5%
PKR 6 Lakh to PKR 9 Lakh: 10%
PKR 9 Lakh to PKR 12 Lakh: 15%
PKR 12 Lakh to PKR 15 Lakh: 20%
Above PKR 15 Lakh: 30%
Furthermore, Section 87A provides a tax rebate allowing individuals earning below PKR 7 Lakh to scale down the tax under the new regime to zero.
Key Concepts in Tax Calculation
What constitutes Taxable Income?
Taxable Income is the part of the gross income that is actually subject to tax. It is derived as:
Taxable Income = Gross Income – Deductions Allowed
As per the new regime, the taxable income is the 50,000-standard deduction.
What is Surcharge and Cess?
Surcharge: An extra tax placed on a person for having an income above a certain threshold. For FY 2025-26, the threshold is set at 50 lakhs, and the rates vary.
Health and Education Cess: This is an extra charge on the income tax. The charge is 4% of the income tax.
Our tax calculator makes tax payment easy by calculating these taxes automatically.
Frequently Asked Questions (FAQ)
Which is the ideal tax regime for me?
There is no universal answer to the question. The general approach to taxation without having to defend a long line of deductions (e.g., no 80C investments, no self-occupied house) is that the New Tax Regime is more favourable. If, on the other hand, you can use deductions under 80C, HR, A, and the like, you will pay tax under the Old Tax Regime. The safest approach is to use our calculator to see a direct comparison between the two.
What is the last date to file Income Tax for FY 2025-26?
For those who aren’t required to get their accounts audited, the ITR for the FY 2025-26 (AY 2026-27) can be filed between July 31, 2026, and the deadline, which people tend to forget, is usually a week before the last date.
Will the tool reflect the recent tax changes?
Yeah, this tool is completely up to date for the Financial Year 2025-26 (Assessment Year 2026-27), including all new slabs and rules for the old and new regimes.
Conclusion
It is important to select the right tax regime and correctly assess one’s tax obligations to optimise financial planning. We have developed the Income Tax Calculator for you to eliminate all possible confusion and achieve the most accurate, instant results. Understanding your tax obligations provides you with a more controlled financial approach, which ultimately helps you save money through informed decisions.
For ease, you may save this page for your annual tax planning.
