Pakistan Tax Calculator (2026)
Income tax rates and take-home pay for Pakistan
Pakistan Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| First bracket (up to PKR 600,000) | PKR 0 - PKR 600,000 | 0.0% |
| Second bracket (PKR 600,001 – PKR 1,200,000) | PKR 600,000 - PKR 1,200,000 | 1.0% |
| Third bracket (PKR 1,200,001 – PKR 2,200,000) | PKR 1,200,000 - PKR 2,200,000 | 11.0% |
| Fourth bracket (PKR 2,200,001 – PKR 3,200,000) | PKR 2,200,000 - PKR 3,200,000 | 23.0% |
| Fifth bracket (PKR 3,200,001 – PKR 4,100,000) | PKR 3,200,000 - PKR 4,100,000 | 30.0% |
| Sixth bracket (PKR 4,100,001 and above) | PKR 4,100,000+ | 35.0% |
Employees Old Age Benefit (EOBF)
| Bracket | Income Range | Rate |
|---|---|---|
| Nominal contribution | PKR 0+ | 0.0% |
Surcharge on income tax (salaried individuals)
| Bracket | Income Range | Rate |
|---|---|---|
| 9% surcharge on income tax | PKR 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
What is the income tax rate in Pakistan for salaried employees?
Pakistan uses a progressive tax system with six income tax brackets ranging from 0% to 35%. The first PKR 600,000 of income is tax-free, then rates increase gradually from 1% on income between PKR 600,001 and PKR 1,200,000, up to 35% on income above PKR 4,100,001. This means your effective tax rate depends on your total income level.
Do I have to pay a surcharge on top of income tax in Pakistan?
Yes, if your taxable income exceeds PKR 10,000,000, you will pay an additional 9% surcharge on your income tax bill. This surcharge applies only to high earners and is calculated after your regular income tax is determined.
Is there a personal allowance or tax-free threshold in Pakistan?
Pakistan does not offer a personal allowance or standard deduction for salaried employees. However, the first PKR 600,000 of income falls in the 0% tax bracket, which effectively serves as a tax-free threshold for most workers earning below that amount.
What social security contributions do I need to pay as an employee in Pakistan?
Salaried employees in Pakistan contribute to the Employees Old Age Benefit (EOBF) scheme, though employee contributions are minimal and typically collected by employers. This contribution is not deductible from your taxable income for income tax purposes.
How many income tax brackets does Pakistan have?
Pakistan has six income tax brackets for salaried individuals, with the lowest rate at 0% and the highest at 35%. The brackets are designed to create a progressive tax system where higher earners pay proportionally more tax on their additional income.
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