Omni Calculator logo
Last updated:

Income Tax Calculator Pakistan

New

Table of contents

What is income tax?Using the income tax calculator for PakistanIncome tax chart and slabsHow to calculate income tax on your salaryDifference between income tax and income tax returnFAQs

The income tax calculator for Pakistan is specially designed for the taxable income earned in Pakistan for the 2025 tax year. But that doesn't mean people living outside can't use it. It estimates taxes, so mathematics is involved. And learning new mathematical formulas is always good, that is, if you are a math geek. Or love to learn about finance from around the globe.

Here, we will discuss the formula to calculate tax on a salary, various income tax slabs, how to convert your monthly income tax to yearly or vice versa, and much more.

There is a lot to look forward to for everyone.

What is income tax?

The name is self-explanatory, don't you think? In financial terms, It is the tax you pay to your government on your salary, which is taxable income. It is determined by a regulatory body, in this case, the FBR — Federal Board of Revenue.

You are obliged to pay your income tax on either a monthly or a quarterly basis. A tax year in Pakistan comprises 12 months, starting from July 1st of a year and ending on June 30th of the next. We denote it by the later year. For instance, the tax year 2022 is from July 1st, 2021, to June 30th, 2022. It means that our income tax for Pakistan calculator's tax year 2025 is from July 1st, 2024, to June 30th, 2025.

Some companies/employers deduct this tax from the salary every month and bare the responsibility of paying it on your behalf. This method of paying the tax is known as "withholding tax". This payment, like any other tax, is paid to the government and is based on the rules and regulations set by them.

If your employer is not registered with the FBR, you must pay the tax yourself by registering yourself with the FBR. They issue you an NTN (National Tax Number) number which is like an identification number for taxpayers.

Might we suggest trying our net income calculator. It is a powerful tool that can help determine if a company/start-up is profitable.

🙋 Did you know the invention, so to speak, of income tax can be attributed to the Egyptians? The United Kingdom introduced it in 1799, while the United States followed in 1861.

Using the income tax calculator for Pakistan

Our income tax for Pakistan calculator is a straightforward tool, which you may also refer to as a salary income tax calculator. As complicated as taxation and finance sound, we have managed to keep the tool simple and easy to use.

So, to determine the tax on your income, all you have to do is:

  1. Input your monthly salary into the tool; and
  2. That's it; you have the results.

The tool will do it all for you, and the result includes:

  1. Monthly tax;
  2. Monthly income after tax;
  3. Yearly income;
  4. Yearly tax; and
  5. Yearly income after tax.

For instance, if you enter Rs. 70,000 as your monthly salary. The tool will tell you that you must pay Rs. 500 as your monthly tax, and your yearly salary is Rs. 840,000. And that means the yearly tax becomes Rs. 6000.

You might enjoy trying our Australia income tax cuts calculator. This calculator helps estimate the income taxes according to the Personal Income Tax Plan — a three-phase plan of tax cuts implemented in Australia.

Income tax chart and slabs

The income tax we pay has categories known as "Income tax slabs". The FBR is responsible for defining these slabs, either yearly or with the passing of each finance bill.

For the current tax year 2025, income tax in Pakistan has the following six slabs:

Yearly income

Yearly tax

Fixed amount

+

Percentage

< Rs. 600,000

0%

> Rs. 600,000 & <= Rs. 1,200,000

5% of the amount exceeding Rs. 600,000

> Rs. 1,200,000 & <= Rs. 2,200,000

Rs. 30,000

15% of the amount exceeding Rs. 1,200,000

> Rs. 2,200,000 & <= Rs. 3,200,000

Rs. 180,000

25% of the amount exceeding Rs. 2,200,000

> Rs. 3,200,000 & <= 4,100,000

Rs. 430,000

30% of the amount exceeding Rs. 3,200,000

> Rs. 4,100,000

Rs. 700,000

35% of the amount exceeding Rs. 4,100,000

On a side note, we have a tax bracket calculator, and with it, you can easily check which tax bracket you are in and find the federal income tax on your income.

How to calculate income tax on your salary

To calculate the tax on your monthly salary, you need two things:

  • Your taxable income (monthly salary); and
  • An income tax chart.

You can calculate your monthly or yearly income tax by following a few simple steps.

  1. Note down your monthly income.

  2. Multiply it by 12 for the number of months in a year, and you have your yearly salary.

  3. Once you calculate your yearly salary, tally the amount with the slabs on an income tax chart for the desired year.

  4. If you match with slabs from 3 to 7, you will have 2 different tax amounts. One is fixed, and the other is a percentage.

  5. Carefully determine the percentage and add it to the fixed tax value.

  6. The result is your yearly income tax.

  7. You may divide the yearly income tax by 12 to get the monthly income tax.

And if all these steps sound like head-scratchers, then just use "the income tax calculator for Pakistan" and let us take care of the rest.

Difference between income tax and income tax return

An income tax return is the record of the tax you pay on your income.

An individual is responsible for filing his tax returns with the FBR (Federal Board of Revenue) via a form, also known as FBR income tax return, now available on government portals online. This form contains information regarding the following:

  • Your income sources;
  • Income tax;
  • Gain or loss on your assets;
  • Tax chargeable payments, like GST (Goods and Services Tax);
  • The withholding tax and refunds; and
  • Foreign income (if any).

The focus of the income tax calculator for Pakistan is to determine the income tax payable on your salary. To file your tax, refer to the FBR official website.

FAQs

How much tax should I pay on my Rs. 250,000 salary?

If this is your monthly salary, it makes your yearly salary Rs. 3,000,000, then you have to pay a yearly tax of Rs. 285,000.

But if this is your yearly salary, then you do not have to pay any tax on it as the minimum taxable income is Rs. 600,000.

How can I calculate tax on my yearly income?

To calculate your yearly tax, follow the steps:

  1. Multiply your monthly salary by 12.
  2. Compare the amount in the table to determine which slab your salary falls in.

Yearly income

Yearly tax

< Rs. 600,000

0%

> Rs. 600,000 & <= Rs. 1,200,000

5% of the amount exceeding Rs. 600,000

> Rs. 1,200,000 & <= Rs. 2,200,000

Rs. 30,000+15% of the amount exceeding Rs. 1,200,000

> Rs. 2,200,000 & <= Rs. 3,200,000

Rs. 180,000 + 25% of the amount exceeding Rs. 2,200,000

> Rs. 3,200,000 & <= 4,100,000

Rs. 430,000 + 30% of the amount exceeding Rs. 3,200,000

> Rs. 4,100,000

Rs. 700,000 + 35% of the amount exceeding Rs. 4,100,000

  1. Determine the percentage based on the slab.
  2. Add the result to the fixed tax of your slab.
  3. The result is the yearly tax on your income.

Do I have to pay income tax monthly or yearly?

According to Pakistan's rules and laws, you must pay your income tax monthly or quarterly. But not yearly. Because after a year, the government can fine you for not paying your tax on time.

Is paying income tax important?

Yes, paying your income tax is as important as paying any other tax.

It is a significant source of finance for the government as they use it for many public services like funding government obligations and public services, providing goods and daily life services for the citizens of the country or their particular jurisdiction.

Monthly tax

Rs. 0

Monthly income after tax

Rs. 0

Yearly income

Rs. 0

Yearly tax

Rs. 0

Check out 46 similar personal finance calculators 💰
403b50/30/20 rule529...43 more