How to estimate your Pakistan income tax for 2024-2025
Pakistan applies separate progressive income tax slabs for salaried and non-salaried taxpayers under Federal Board of Revenue (FBR) rules. This calculator estimates your annual income tax, monthly tax withholding, net take-home pay, and effective tax rate using the 2024-2025 tax year tables.
Enter your annual gross income and select salaried or non-salaried taxpayer type. For U.S. federal and state tax estimates, see the income tax calculator. To convert monthly salary to annual income, use the monthly income calculator and the salary calculator.
Pakistan income tax slabs for 2024-2025
Salaried individuals benefit from lower rates on middle income compared to non-salaried taxpayers. Both categories share a tax-free threshold on the first PKR 600,000 of annual income:
Salaried taxpayer slabs
- Up to PKR 600,000: 0%
- PKR 600,001 to PKR 1,200,000: 5% on excess over PKR 600,000
- PKR 1,200,001 to PKR 2,200,000: PKR 30,000 plus 15% on excess over PKR 1,200,000
- PKR 2,200,001 to PKR 3,200,000: PKR 180,000 plus 25% on excess over PKR 2,200,000
- PKR 3,200,001 to PKR 4,100,000: PKR 430,000 plus 30% on excess over PKR 3,200,000
- Above PKR 4,100,000: PKR 700,000 plus 35% on excess over PKR 4,100,000
Non-salaried taxpayer slabs
- Up to PKR 600,000: 0%
- PKR 600,001 to PKR 1,200,000: 15% on excess over PKR 600,000
- PKR 1,200,001 to PKR 1,600,000: PKR 90,000 plus 20% on excess over PKR 1,200,000
- PKR 1,600,001 to PKR 3,200,000: PKR 170,000 plus 30% on excess over PKR 1,600,000
- PKR 3,200,001 to PKR 5,600,000: PKR 650,000 plus 40% on excess over PKR 3,200,000
- Above PKR 5,600,000: PKR 1,610,000 plus 45% on excess over PKR 5,600,000
How Pakistan income tax is calculated
Tax is computed progressively within each slab. The formula for any income above a slab threshold is:
Monthly tax and net take-home are derived by dividing annual figures by 12. The effective tax rate equals total income tax divided by gross annual income.
Worked example: PKR 1,800,000 salaried income, 2024-2025
Consider a salaried employee earning PKR 1,800,000 per year during the 2024-2025 tax year:
- First PKR 600,000: 0% tax = PKR 0
- PKR 600,001 to PKR 1,200,000: 5% on PKR 600,000 = PKR 30,000
- PKR 1,200,001 to PKR 1,800,000: 15% on PKR 600,000 = PKR 90,000
- Total annual income tax: PKR 30,000 + PKR 90,000 = PKR 120,000
- Net take-home (annual): PKR 1,800,000 - PKR 120,000 = PKR 1,680,000
- Monthly net take-home: PKR 1,680,000 / 12 = PKR 140,000
- Effective tax rate: PKR 120,000 / PKR 1,800,000 = 6.67%
Salaried vs. non-salaried taxpayers
Pakistan offers preferential slabs for salaried individuals. At PKR 1,800,000, a salaried taxpayer owes PKR 120,000 while a non-salaried taxpayer would owe PKR 230,000 under the 2024-2025 non-salaried slabs. Select the correct taxpayer type to match your FBR filing category.
This calculator also supports the 2023-2024 tax year for comparison. Switch the tax year selector to see how slab changes affect your liability.
Frequently asked questions
What tax year does this calculator use?
What is the tax-free threshold in Pakistan?
What is the difference between salaried and non-salaried slabs?
Does this calculator include provincial taxes?
How is monthly tax calculated?
Are the results stored on a server?
Resources and references
The formulas and methods in this calculator were checked against these independent sources.