Pakistan Tax Calculator (2026)
Income tax rates and take-home pay for Pakistan
Sponsored
Getting paid in a foreign currency?
Get paid in 22 currencies at the real exchange rate, with no hidden fees or mark-ups, so the take-home above isn't quietly shaved by FX fees.
Get a Wise accountWe may earn a commission if you sign up through this link.
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?
Pakistan uses a progressive tax system with six income tax brackets ranging from 0% to 35%. Income up to PKR 600,000 is tax-free, while income between PKR 600,001 and PKR 1,200,000 is taxed at just 1%. The rate increases gradually for higher earners, reaching 35% on income above PKR 4,100,001. This progressive structure means you only pay the higher rates on the portion of income that falls into each bracket.
Do I pay tax on my entire salary in Pakistan?
Yes, Pakistan's tax system applies to your full taxable salary with no personal allowance or standard deduction. However, the first PKR 600,000 of income is completely tax-free, which provides some relief for lower earners. After that threshold, tax is calculated progressively on each additional rupee earned.
Is there a surcharge on high incomes in Pakistan?
Yes, if your taxable income exceeds PKR 10,000,000, a 9% surcharge is applied on top of your income tax. This surcharge only applies to the portion of income above the PKR 10 million threshold, so it affects high earners and those with significant income from multiple sources.
What is the Employees Old Age Benefit and do I have to pay it?
The Employees Old Age Benefit (EOBF) is a social security contribution in Pakistan, though employee contributions are nominal and not explicitly modeled in most tax calculations. Your employer typically handles any required contributions, so you won't see a significant deduction on your payslip for this.
How much tax will I pay as an expat or remote worker in Pakistan?
As a salaried employee in Pakistan, you'll be subject to the same progressive income tax brackets as residents, with tax-free income up to PKR 600,000 and rates ranging from 0% to 35% depending on your total income. If you earn above PKR 10 million, an additional 9% surcharge applies to your income tax. Use our calculator above to see your exact take-home pay based on your expected salary.
Compare Pakistan with other countries
Other tax calculators
Compare Pakistan with another country
See side-by-side tax breakdowns for any two countries