Income Tax on Salary in Pakistan (FY2025–26): Slabs, Examples & How to Calculate
Salaried tax in Pakistan is charged in progressive slabs set by the Finance Act 2025. This guide gives the FY2025–26 rates and worked examples for common monthly salaries.
For FY2025–26 salaried individuals in Pakistan pay 0% up to Rs. 600,000/year, 5% on 600,001–1,200,000, 15% on 1,200,001–2,200,000, 25% on 2,200,001–3,200,000, 30% on 3,200,001–4,100,000, and 35% above 4,100,000. Tax applies only to the income within each slab, not your whole salary.
FY2025–26 salaried tax slabs
| Annual taxable income (PKR) | Tax on this slab |
|---|---|
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 5% of the amount above 600,000 |
| 1,200,001 – 2,200,000 | Rs. 30,000 + 15% above 1,200,000 |
| 2,200,001 – 3,200,000 | Rs. 180,000 + 25% above 2,200,000 |
| 3,200,001 – 4,100,000 | Rs. 430,000 + 30% above 3,200,000 |
| Above 4,100,000 | Rs. 700,000 + 35% above 4,100,000 |
How the calculation works
Pakistan uses progressive slabs. Each slab taxes only the income that falls inside it. So being 'in the 25% slab' does not mean 25% of your salary — it means 25% applies only to the part above Rs. 2,200,000. Your effective rate (total tax ÷ total income) is always lower than the slab (marginal) rate.
Annual tax = fixed amount for your slab + slab rate × (income − slab floor)
- fixed amount
- — The cumulative tax on all lower slabs (see the table)
- slab rate
- — The marginal rate for your slab (5–35%)
- slab floor
- — The lower boundary of your slab
Worked examples
Salary of Rs. 100,000 per month
Gross annual income Rs. 1,200,000 — right at the top of the 5% slab.
- Annual income
- Rs. 1,200,000
- 5% on Rs. 600,000 (600k–1.2M)
- Rs. 30,000
- Annual tax
- Rs. 30,000
- Monthly deduction
- Rs. 2,500
Annual tax Rs. 30,000 — an effective rate of just 2.5%.
Salary of Rs. 200,000 per month
Gross annual income Rs. 2,400,000 — into the 25% slab.
- Annual income
- Rs. 2,400,000
- Fixed tax on first Rs. 2,200,000
- Rs. 180,000
- 25% on the remaining Rs. 200,000
- Rs. 50,000
- Annual tax
- Rs. 230,000
- Monthly deduction
- Rs. 19,167
Annual tax Rs. 230,000 — an effective rate of 9.6%, well below the 25% slab rate.
Salary of Rs. 500,000 per month
Gross annual income Rs. 6,000,000 — into the top 35% slab, below the Super Tax threshold.
- Annual income
- Rs. 6,000,000
- Fixed tax on first Rs. 4,100,000
- Rs. 700,000
- 35% on the remaining Rs. 1,900,000
- Rs. 665,000
- Annual tax
- Rs. 1,365,000
- Monthly deduction
- Rs. 113,750
Annual tax Rs. 1,365,000 — an effective rate of 22.75%.
Even at the top slab the effective rate is under 23%, because the first Rs. 4.1M is taxed at lower rates.
Salaried vs. non-salaried
Business and self-employed individuals use a separate, steeper slab table (up to 45%). IT and IT-enabled services exporters who receive payment in foreign currency through banking channels pay a 0.25% final tax on those remittances instead of the normal slabs.
Common mistakes
- Confusing the marginal rate with the effective rate — you don't pay your slab rate on your whole salary.
- Forgetting that statutory Zakat deducted from savings accounts is deductible from taxable income.
- Assuming allowances are tax-free — most cash allowances are part of taxable salary.
- Not filing because income is below Rs. 600,000 — filing still keeps you on the Active Taxpayer List and off higher non-filer withholding rates.
Calculate your exact tax
Enter your annual income and taxpayer type to get annual tax, monthly deduction, effective rate and net income for FY2025–26.
Open the PK Income Tax calculatorFrequently asked questions
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