How income tax on salary works in Pakistan
Pakistan taxes salaried individuals on their annual gross salary under the Income Tax Ordinance 2001. Your employer deducts roughly one-twelfth of the annual tax from each month's pay. The Finance Act 2026 lowered the salaried slabs and abolished the extra surcharge for salaried individuals.
| Annual income (PKR) | Tax |
|---|---|
| 0 – 600,000 | 0% |
| 600,001 – 1,200,000 | 1% of excess over 600,000 |
| 1,200,001 – 2,200,000 | Rs 6,000 + 11% of excess over 1,200,000 |
| 2,200,001 – 3,200,000 | Rs 116,000 + 20% of excess over 2,200,000 |
| 3,200,001 – 4,100,000 | Rs 316,000 + 25% of excess over 3,200,000 |
| 4,100,001 – 5,600,000 | Rs 541,000 + 29% of excess over 4,100,000 |
| 5,600,001 – 7,000,000 | Rs 976,000 + 32% of excess over 5,600,000 |
| Above 7,000,000 | Rs 1,424,000 + 35% of excess over 7,000,000 |
On top of income tax, employees may pay EOBI (pension) — 1% of the provincial minimum wage, e.g. Rs 400/month in Punjab and Rs 430/month in Sindh. It mainly applies to lower-salaried staff in establishments with 5+ workers, so the calculator keeps it optional.
Read our full guide: How income tax works in Pakistan.