Income Tax Calculator Pakistan
Calculate your income tax liability in Pakistan for the tax year 2024-25. This calculator follows the Federal Board of Revenue (FBR) tax slabs and includes deductions for salaried individuals.
Tax Summary
Tax Breakdown
2024/25 Tax Slabs
Understanding Pakistan Income Tax
Pakistan's income tax system is administered by the Federal Board of Revenue (FBR). The tax year runs from 1st July to 30th June, and tax is calculated on the basis of progressive tax slabs. Different rates apply to individuals, associations of persons, and companies.
Income Tax Slabs for Individuals 2024/25
Tax Rates for Salaried Individuals
| Income Range (PKR) | Tax Rate | Tax Amount |
|---|---|---|
| 0 - 600,000 | 0% | Nil |
| 600,001 - 1,200,000 | 5% | 5% of (income - 600,000) |
| 1,200,001 - 2,400,000 | 12.5% | 12.5% of (income - 1,200,000) + 30,000 |
| 2,400,001 - 3,600,000 | 20% | 20% of (income - 2,400,000) + 180,000 |
| 3,600,001 - 6,000,000 | 27.5% | 27.5% of (income - 3,600,000) + 480,000 |
| 6,000,001+ | 35% | 35% of (income - 6,000,000) + 1,290,000 |
Tax Calculation Method
How Pakistan Income Tax is Calculated
Step 1: Calculate Gross Total Income
Sum of salary, business income, property income, capital gains, and other sources
Step 2: Apply Deductions
Subtract allowable deductions (medical expenses, donations, provident fund, etc.)
Step 3: Calculate Taxable Income
Gross income minus deductions gives taxable income
Step 4: Apply Tax Slabs
Tax each portion of income at the applicable slab rate
Step 5: Add Surcharge (if applicable)
Additional tax for high-income earners (currently suspended)
Allowable Deductions
Medical Expenses
- Up to PKR 150,000 for self and dependents
- Medical insurance premiums
- Hospitalization expenses
- Medical treatment abroad
Other Deductions
- Zakat and donations (up to 20% of income)
- Provident fund contributions
- Life insurance premiums
- Education expenses for children
- Loan interest payments
Tax Filing and Payment
Income tax returns must be filed by 31st December for the previous tax year. Tax is paid through the withholding tax system (salary deductions) or through advance tax payments. Self-employed individuals may need to pay advance tax quarterly.
Withholding Tax on Salary
Employers deduct income tax from salaries based on the employee's tax liability. The withholding tax is calculated monthly and adjusted annually when filing the tax return. Over-withheld tax is refunded, while under-withheld tax must be paid.
Minimum Tax Regime
Certain taxpayers are subject to minimum tax, which ensures a minimum tax payment regardless of actual taxable income. This applies to individuals with turnover exceeding certain thresholds.
Tax Credits and Reliefs
| Tax Credit/Relief | Description | Maximum Amount |
|---|---|---|
| Investment in Shares | Investment in listed company shares | Up to PKR 150,000 |
| Pension Fund Contributions | Voluntary pension fund contributions | 20% of taxable income |
| Donations | Donations to approved organizations | Up to 30% of taxable income |
Key Takeaways for Pakistan Income Tax
- Tax year runs from 1st July to 30th June
- Progressive tax slabs from 0% to 35%
- First PKR 600,000 is tax-free
- Medical expenses up to PKR 150,000 deductible
- Zakat and donations deductible up to 20% of income
- Tax returns due by 31st December
- Withholding tax deducted from salaries
- Advance tax for self-employed individuals
- Minimum tax applies to certain taxpayers
- Various tax credits available for investments