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 600,000 | 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
Do I pay income tax on my entire salary in Pakistan?
No, Pakistan has a tax-free threshold. The first PKR 600,000 of your annual income is not taxed at all. Once you exceed PKR 600,000, you start paying tax on the amount above that threshold, with rates increasing progressively up to 35% for income above PKR 4,100,000.
What is the highest income tax rate in Pakistan?
The highest income tax rate is 35%, which applies to salaried individuals earning above PKR 4,100,000 annually. Additionally, if your taxable income exceeds PKR 10,000,000, a 9% surcharge is applied on top of your income tax, increasing your effective tax burden.
How many income tax brackets are there in Pakistan?
Pakistan has six income tax brackets ranging from 0% to 35%. The brackets start at PKR 600,000 (0% tax), then gradually increase through rates of 1%, 11%, 23%, and 30%, before reaching the top rate of 35% for income above PKR 4,100,000.
Do I need to pay social security contributions as an employee in Pakistan?
Yes, employees contribute to the Employees Old Age Benefit (EOBF), which is a mandatory social security scheme. However, this contribution is nominal and typically collected by your employer; the employee contribution rate is minimal and not explicitly modeled in general tax calculations.
Are there any regional differences in income tax rates across Pakistan?
This tax model covers federal income tax, which applies uniformly across Pakistan. However, you should be aware that Pakistan also has provincial and local taxes such as property tax, stamp duty, and registration taxes, which vary by region and are not included in this federal income tax calculator.
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