1. What is Pakistan Salary Tax?

The Pakistan Salary Tax is a progressive tax system where individuals are taxed based on their annual income. The tax rates increase as income rises through different tax brackets or slabs.

2. How Does the Calculator Work?

The calculator uses the Pakistan 2024-25 tax slabs:

The calculation follows these steps:

1. Determine which tax bracket the income falls into
2. Apply the appropriate tax rate to the portion of income in each bracket
3. Sum the tax amounts from all applicable brackets

3. Pakistan 2024-25 Tax Slabs

Tax Rates for Salaried Individuals:

• Up to PKR 600,000: 0%
• PKR 600,001 - 1,200,000: 2.5% of amount exceeding PKR 600,000
• PKR 1,200,001 - 2,400,000: PKR 15,000 + 12.5% of amount exceeding PKR 1,200,000
• PKR 2,400,001 - 3,600,000: PKR 165,000 + 20% of amount exceeding PKR 2,400,000
• PKR 3,600,001 - 6,000,000: PKR 405,000 + 25% of amount exceeding PKR 3,600,000
• PKR 6,000,001 - 12,000,000: PKR 1,005,000 + 32.5% of amount exceeding PKR 6,000,000
• Above PKR 12,000,000: PKR 2,955,000 + 35% of amount exceeding PKR 12,000,000

4. Using the Calculator

Instructions: Enter your annual taxable income in PKR. The calculator will automatically apply the current tax rates and show your estimated tax liability.

5. Frequently Asked Questions (FAQ)

Q1: What counts as taxable income?
A: Taxable income includes salary, bonuses, allowances, and other employment benefits after allowable deductions.

Q2: Are there any tax credits or deductions?
A: Yes, various tax credits and deductions may apply depending on your situation (e.g., Zakat, charitable donations).

Q3: How often should I file taxes?
A: In Pakistan, salaried individuals typically file annual tax returns.

Q4: What if I have income from multiple sources?
A: All income sources should be combined when calculating your tax liability.

Q5: When are taxes due?
A: The tax year runs from July 1 to June 30, with returns typically due by December 31.