Salary Tax in Pakistan
Income tax on salary is a crucial aspect of Pakistan’s taxation system, affecting millions of employees across the country in the private or public sector. The tax on salary is charged on a progressive tax system. This means you have to pay more tax on a higher annual income from salary.
In Pakistan, tax on annual salary income is based on slabs, with rates ranging from 0% for lower income brackets to higher percentages for those earning above certain thresholds. The tax year runs from July 1st to June 30th of the following year. Employers are obliged to deduct tax at source through monthly salary deductions.
The income tax slabs for the year 2025-26 are given below. You can find your annual tax liability by using the tax amount mentioned against each slab.
Alternatively, you can use the salary tax calculator, which will calculate your annual tax, monthly tax and the tax percentage on your annual salary income.
Salary Tax Calculator
Tax Slabs 2025-26
| Taxable Annual Income | Tax Rate |
|---|---|
| When Annual Income Does not exceed 600,000 | 0% |
| When Annual Income Exceeds 600,000 but does not exceed 1,200,000 | 1% of the amount exceeding PKR 600,000 |
| When Annual Income Exceeds 1,200,000 but does not exceed 2,200,000 | PKR 6,000 + 11% of the amount exceeding PKR 1,200,000 |
| When Annual Income Exceeds 2,200,000 but does not exceed 3,200,000 | PKR 116,000 + 23% of the amount exceeding PKR 2,200,000 |
| When Annual Income Exceeds 3,200,000 but does not exceed 4,100,000 | PKR 346,000 + 30% of the amount exceeding PKR 3,200,000 |
| When Annual Income Exceeds 4,100,000 | PKR 616,000 + 35% of the amount exceeding PKR 4,100,000 |