Understanding the tax brackets and rates for salaried individuals
Income Range | Tax Rate | Additional Fixed Amount |
---|---|---|
Up to PKR 600,000 | 0% | 0 |
PKR 600,001 - 1,200,000 | 1% of amount exceeding 600,000 | 0 |
PKR 1,200,001 - 2,200,000 | 11% of amount exceeding 1,200,000 | PKR 6,000 |
PKR 2,200,001 - 3,200,000 | 23% of amount exceeding 2,200,000 | PKR 116,000 |
PKR 3,200,001 - 4,100,000 | 30% of amount exceeding 3,200,000 | PKR 346,000 |
Above PKR 4,100,000 | 35% of amount exceeding 4,100,000 | PKR 616,000 |
Income Range | Tax Rate | Additional Fixed Amount |
---|---|---|
Up to PKR 600,000 | 0% | 0 |
PKR 600,001 - 1,200,000 | 5% of amount exceeding 600,000 | 0 |
PKR 1,200,001 - 2,200,000 | 15% of amount exceeding 1,200,000 | PKR 30,000 |
PKR 2,200,001 - 3,200,000 | 25% of amount exceeding 2,200,000 | PKR 180,000 |
PKR 3,200,001 - 4,100,000 | 30% of amount exceeding 3,200,000 | PKR 430,000 |
Above PKR 4,100,000 | 35% of amount exceeding 4,100,000 | PKR 700,000 |
Income Range | Tax Rate | Additional Fixed Amount |
---|---|---|
Up to PKR 600,000 | 0% | 0 |
PKR 600,001 - 1,200,000 | 2.5% of amount exceeding 600,000 | 0 |
PKR 1,200,001 - 2,400,000 | 12.5% of amount exceeding 1,200,000 | PKR 15,000 |
PKR 2,400,001 - 3,600,000 | 22.5% of amount exceeding 2,400,000 | PKR 165,000 |
PKR 3,600,001 - 6,000,000 | 27.5% of amount exceeding 3,600,000 | PKR 435,000 |
Above PKR 6,000,000 | 35% of amount exceeding 6,000,000 | PKR 1,095,000 |
The Pakistan income tax system operates on a progressive tax rate structure, meaning the tax rate increases as your income increases. The tax year in Pakistan runs from July 1st to June 30th of the following year.
For the tax year 2025-2026, significant changes have been implemented compared to the previous year:
Income Range | 2025-2026 Rate | 2024-2025 Rate | 2023-2024 Rate |
---|---|---|---|
Up to PKR 600,000 | 0% | 0% | 0% |
PKR 600,001 - 1,200,000 | 1% | 5% | 2.5% |
PKR 1,200,001 - 2,200,000 | 11% + PKR 6,000 | 15% + PKR 30,000 | 12.5% + PKR 15,000 |
PKR 2,200,001 - 3,200,000 | 23% + PKR 116,000 | 25% + PKR 180,000 | 22.5% + PKR 165,000 |
PKR 3,200,001 - 4,100,000 | 30% + PKR 346,000 | 30% + PKR 430,000 | 27.5% + PKR 435,000 |
Above PKR 4,100,000 | 35% + PKR 616,000 | 35% + PKR 700,000 | 35% + PKR 1,095,000 |