Pakistan Tax Calculator (2026)

Income tax rates and take-home pay for Pakistan

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Pakistan Income Tax Brackets (2025)

Bracket Income Range Rate
First bracket (up to PKR 600,000)PKR 0 - PKR 600,0000.0%
Second bracket (PKR 600,001 – PKR 1,200,000)PKR 600,000 - PKR 1,200,0001.0%
Third bracket (PKR 1,200,001 – PKR 2,200,000)PKR 1,200,000 - PKR 2,200,00011.0%
Fourth bracket (PKR 2,200,001 – PKR 3,200,000)PKR 2,200,000 - PKR 3,200,00023.0%
Fifth bracket (PKR 3,200,001 – PKR 4,100,000)PKR 3,200,000 - PKR 4,100,00030.0%
Sixth bracket (PKR 4,100,001 and above)PKR 4,100,000+35.0%

Employees Old Age Benefit (EOBF)

Bracket Income Range Rate
Nominal contributionPKR 0+0.0%

Surcharge on income tax (salaried individuals)

Bracket Income Range Rate
9% surcharge on income taxPKR 0+9.0%

Applies when income exceeds PKR 10,000,000

Key Facts

Tax Year

2025

Currency

PKR

Top Rate

35.0%

Brackets

6 brackets

Tax-Free Threshold

PKR 600,000

Social Contributions

1 item

Assumptions

  • · Model assumes salaried individual with salary exceeding 75% of taxable income, the primary case for most employees.
  • · No personal allowance or standard deduction is applied; taxable income equals gross salary.
  • · Social security contributions (Employees Old Age Benefit) are nominal and employer-collected; employee contribution is minimal and not explicitly modeled due to lack of published rates.
  • · Surcharge of 9% on income tax applies when taxable income exceeds PKR 10,000,000.
  • · Various deductions (medical allowance, donations, teacher rebate) are omitted as they are conditional, time-limited, or apply to specific employee categories and cannot be represented in a general representative model.
  • · Property tax, stamp duty, and registration taxes are provincial/local levies excluded from this federal income tax model.
  • · Withholding at source is assumed to follow the same brackets; final tax is calculated on full taxable income.

Frequently asked questions

Do I pay income tax on my salary in Pakistan?

Yes, but only if your salary exceeds PKR 600,000 per year. The first PKR 600,000 is tax-free, and then you pay progressive rates starting at 1% on income between PKR 600,001 and PKR 1,200,000. Pakistan uses a 6-bracket progressive tax system with rates climbing to 35% on income above PKR 4,100,000.

What happens if I earn over PKR 10 million in Pakistan?

If your taxable income exceeds PKR 10,000,000, you'll pay an additional 9% surcharge on top of your regular income tax. This surcharge is calculated on the income tax itself, not your gross income, so it effectively increases your overall tax burden for high earners.

How much do I contribute to social security as an employee in Pakistan?

Employees pay into the Employees Old Age Benefit (EOBF) scheme, though the employee contribution is nominal and not explicitly modeled in most tax calculations. The scheme is primarily employer-funded, so your take-home pay is not significantly reduced by this contribution.

Is there a personal allowance or standard deduction in Pakistan?

No, Pakistan does not offer a personal allowance or standard deduction. Your taxable income is calculated as your gross salary with no initial exemption, though the first PKR 600,000 bracket has a 0% tax rate, which effectively provides a tax-free threshold.

Do tax rates vary by region in Pakistan?

This model covers federal income tax, which applies nationwide. However, Pakistan also has provincial and local taxes such as property tax, stamp duty, and registration taxes that vary by region and are not included in the federal income tax calculation shown here.

Can I claim deductions for medical expenses or donations?

While Pakistan's tax code does allow certain deductions such as medical allowances, donations, and teacher rebates, these are conditional, time-limited, or apply only to specific employee categories. This calculator uses a standard model for salaried employees and does not include these conditional deductions, so you may be able to reduce your tax further if you qualify for any of these reliefs.

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