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Formula

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Results

Income Tax Payable
PKR 30,000
per year
Annual Tax PKR 30,000
Net Income (after tax, per year) PKR 1,170,000
Marginal Tax Rate 5%
Effective Tax Rate 2.5%

What is the Pakistan Income Tax Calculator?

This tool applies to Pakistan only and uses the Federal Board of Revenue (FBR) progressive slab rates for Tax Year 2024-25. It estimates the annual income tax payable by resident individuals on taxable income, for both salaried persons (where salary is more than 75% of total income) and non-salaried / business individuals. Figures are estimates for planning only and ignore rebates, surcharges and special credits.

How to use it

Choose your employment type, enter your annual taxable income in PKR, and pick whether you want the tax shown per year or per month. The calculator finds the slab your income falls into and returns the tax, net (after-tax) income, your marginal rate, and your overall effective rate.

The formula explained

Pakistan uses a marginal-slab system. For each slab a fixed amount covers all tax due up to the slab's lower limit, then a marginal rate applies only to the income above that limit:

$$\text{Tax} = F + \left(\text{Income} - L\right) \times r$$

For salaried individuals in 2024-25 the slabs are: up to 600,000 → 0%; 600,001–1,200,000 → 5%; 1,200,001–2,200,000 → 15% (+30,000); 2,200,001–3,200,000 → 25% (+180,000); 3,200,001–4,100,000 → 30% (+430,000); above 4,100,000 → 35% (+700,000).

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Stepped slab structure showing rising tax rates across income brackets
Income tax is calculated slab by slab, with a fixed amount plus a marginal rate on income above each lower limit.

Worked example

A salaried person earns PKR 2,500,000. This falls in the 25% slab with a lower limit of 2,200,000 and fixed amount 180,000. $$\text{Tax} = 180{,}000 + (2{,}500{,}000 - 2{,}200{,}000) \times 0.25 = 180{,}000 + 75{,}000 = \textbf{PKR } 255{,}000$$ The effective rate is \(255{,}000 / 2{,}500{,}000 = 10.2\%\).

Breakdown of gross income into tax and net income
A worked example splits gross annual income into the tax due and the remaining take-home net income.

FAQ

Salaried vs non-salaried — which applies? If salary makes up more than 75% of your total taxable income, use the salaried rates; otherwise use non-salaried/business rates.

Is this exactly what I'll pay? No. It is an estimate of normal income tax under the slab schedule and does not include tax credits, surcharges, withholding adjustments or minimum tax.

Which tax year is used? The slabs reflect FBR Tax Year 2024-25.

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