Pakistan Income Tax Calculator

Pakistan Income Tax Slabs

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

Understanding Pakistan Income Tax Calculation

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.

Key Points About Pakistan Income Tax:

  • Tax rates and slabs are different for each tax year
  • The tax calculation includes both a percentage rate and a fixed amount for certain slabs
  • Monthly tax is calculated by dividing the annual tax liability by 12
  • Income up to PKR 600,000 is exempt from tax in both tax years

Recent Changes in Tax Rates:

For the tax year 2025-2026, significant changes have been implemented compared to the previous year:

  • Reduced tax rate from 5% to 1% for income between PKR 600,001 - 1,200,000
  • Decreased tax rate from 15% to 11% for income between PKR 1,200,001 - 2,200,000
  • Lowered fixed tax amounts across most income slabs
  • Maintained tax exemption for income up to PKR 600,000

Three-Year Tax Rate Comparison (2023-2026)

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
Note: The 2025-2026 tax year shows significant reductions in tax rates and fixed amounts, particularly for lower and middle-income brackets, making it more favorable for taxpayers compared to previous years.