How to use Pakistan Income Tax Calculator
This Pakistan income tax calculator estimates your federal income tax for salaried individuals based on your annual salary and the tax year you select. Choose between tax years 2023, 2024, 2025 and 2026 — the slabs set by the Federal Board of Revenue (FBR) changed in each annual budget, and the Finance Act 2025 (TY2026) cut the lower-band rates to 1%, 11% and 23%, so the tax on the same income differs by year. The calculator applies the salaried-individual slabs (used where salary is more than 75% of taxable income), keeps the PKR 600,000 exempt band tax-free, and shows your effective rate, marginal rate, a full slab-by-slab breakdown and your estimated take-home pay.
- Select your tax year (2023, 2024, 2025, or 2026) from the dropdown.
- Enter your annual gross salary in Pakistani rupees (PKR).
- Keep the filing status as Salaried Individual — Pakistan taxes individuals.
- Click Calculate to see your income tax, effective rate and marginal rate.
- Review the slab-by-slab breakdown and your estimated take-home pay.
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How Pakistan salary tax slabs work
Pakistan uses progressive annual slabs: only the salary within each slab is taxed at that slab’s rate, not your whole income. The first PKR 600,000 is exempt. For tax year 2025, a salary of PKR 2,000,000 pays nothing on the first PKR 600,000, 5% on the next PKR 600,000 (PKR 30,000), and 15% on the remaining PKR 800,000 (PKR 120,000) — a total of PKR 150,000, an effective rate of just 7.5% despite a 15% marginal rate.
| Annual Taxable Income (PKR) | Tax Rate | Tax on this slab |
|---|---|---|
| 0 – 600,000 | 0% | Nil (exempt band) |
| 600,001 – 1,200,000 | 5% | 5% of amount over 600,000 |
| 1,200,001 – 2,200,000 | 15% | 30,000 + 15% over 1,200,000 |
| 2,200,001 – 3,200,000 | 25% | 180,000 + 25% over 2,200,000 |
| 3,200,001 – 4,100,000 | 30% | 430,000 + 30% over 3,200,000 |
| 4,100,001+ | 35% | 700,000 + 35% over 4,100,000 |
How the slabs changed across tax years
The slabs are reset by each year’s Finance Act, so the same salary can be taxed very differently. TY2023 (Finance Act 2022) used rates of 2.5%, 12.5%, 20%, 25% and 35%. TY2024 (Finance Act 2023) kept 2.5% and 12.5% at the bottom but raised the upper bands to 22.5% and 27.5%. TY2025 (Finance Act 2024) compressed the slabs and doubled the entry rate to 5%, with 15%, 25%, 30% and 35% above. As a result, PKR 5,000,000 is taxed PKR 755,000 in TY2023, PKR 820,000 in TY2024 and PKR 1,015,000 in TY2025 — use the year selector to compare.
Effective versus marginal tax rate
Your effective tax rate is your total tax divided by your salary — your true average. Your marginal tax rate is the rate on your next rupee, set by the highest slab you reach. Because the first PKR 600,000 is exempt and lower slabs use lower rates, your effective rate is usually far below your marginal rate. On PKR 2,000,000 in TY2025 the marginal rate is 15% but the effective rate is only about 7.5%. Understanding the difference helps with decisions about bonuses, overtime and job offers.
What this calculator does not include
This estimator models only the FBR salaried-individual slabs. It does not include the 9% high-income surcharge on taxable income above PKR 10 million, the separate slabs for non-salaried individuals and associations of persons (AOPs), EOBI contributions, zakat, or any tax credits and allowances. Income tax on salaries in Pakistan is federal only — there is no provincial income tax to add. For complex situations, consult the FBR or a tax adviser.
Worked examples
Salaried, PKR 1,000,000, TY2025
Inputs: PKR 1,000,000 salary
Result: ~PKR 20,000 tax · 2% effective · 5% marginal
Salaried, PKR 2,000,000, TY2025
Inputs: PKR 2,000,000 salary
Result: ~PKR 150,000 tax · 7.5% effective · 15% marginal
Salaried, PKR 5,000,000, TY2025
Inputs: PKR 5,000,000 salary
Result: ~PKR 1,015,000 tax · 20.3% effective · 35% marginal
Glossary
- Exempt band
- The first PKR 600,000 of annual income, which is not taxed.
- Salaried individual
- A taxpayer whose salary is more than 75% of taxable income, taxed on the salaried slabs.
- Effective tax rate
- Total tax owed divided by total salary — your true average tax rate.
- Marginal tax rate
- The tax rate applied to your next rupee of income, set by the highest slab you reach.
- Tax slab
- A range of income taxed at a specific rate in Pakistan’s progressive system.
- Tax year
- Pakistan’s fiscal year, running 1 July to 30 June (TY2025 = 1 Jul 2024 to 30 Jun 2025).
- FBR
- The Federal Board of Revenue — the federal authority that sets and collects income tax.
- Finance Act
- The annual law that sets each tax year’s slabs and rates from 1 July.
Related reading
Frequently Asked Questions
Why use Pakistan Income Tax Calculator?
- Uses the correct FBR salaried slabs for each tax year (Finance Act 2022, 2023 and 2024)
- Keeps the first PKR 600,000 tax-free, matching Pakistan’s exempt band
- Compare tax years 2023, 2024 and 2025 to see how budget changes affected your tax
- See your effective rate (actual tax ÷ salary) and marginal rate (rate on your next rupee)
- Full slab-by-slab breakdown shows exactly how each PKR band of your salary is taxed
Common use cases
- Estimate your FBR salary tax before your employer deducts it at source
- See how the Finance Act 2024 slabs raised your tax versus the previous year
- Work out your monthly take-home from an annual CTC or gross salary offer
- Compare your marginal slab rate with your effective (average) rate
- Check historical salary tax for a prior tax year when reviewing payslips
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