How salary tax works in Pakistan
Income tax on salary is worked out on your yearly taxable salary using slabs: no tax up to Rs 600,000 a year, then a fixed amount plus a percentage of the income above each slab's starting point. Your employer deducts it from your salary each month (withholding tax), so the monthly figure is your yearly tax divided by 12.
Example: a salary of Rs 150,000 a month is Rs 1,800,000 a year. Tax = Rs 6,000 + 11% of (1,800,000 − 1,200,000) = Rs 72,000 a year, or Rs 6,000 a month.
Questions
Which salary should I enter?
Your taxable salary, which for most people is the gross salary before tax. Some payments may be treated differently; your payslip or HR department can confirm the taxable amount.
Do I need to file a tax return if tax is deducted from my salary?
Filing a return keeps you on the Active Taxpayer List (ATL), which lowers taxes on things like bank transactions, vehicles and property. Many salaried people file every year by 30 September.
When do these rates change?
Usually every year in the federal budget in June, effective from 1 July. This calculator shows which tax year it uses at the top.