Salary Tax Slabs For Tax Year 2025-26 (Direct Tax)
Salary is income under 600,000
If the annual salary income does not exceed PKR. 600,000 then the rate of the income tax is 0%
Salary income exceeds 600,000 but is under 1.2 Million
If the annual salary income exceeds PKR. 600,000 but does not exceed PKR. 1.2 million then the rate of income tax is 1% of the amount exceeding PKR. 600,000.
Salary income exceeds 1.2 Million but is under 2.2 Million
If the taxable annual income exceeds PKR. 1.2 million but does not exceed PKR. 2.2 million then the rate of income tax is PKR. 6,000 + 11% of the amount exceeding PKR. 1.2 million.
Salary income exceeds 2.2 Million but is under 3.2 Million
If the annual salary income exceeds PKR. 2.2 million but does not exceed PKR. 3.2 million then the rate of income tax is PKR 116,000 + 23% of the amount exceeding PKR. 2.2 million
Salary income exceeds 3.2 Million but is under 4.1 Million
If the annual salary income exceeds PKR. 3.2 million but does not exceed PKR. 4.1 million then the rate of income tax is PKR. 346,000 + 30% of the amount exceeding PKR. 3.2 million
Salary income exceeds 4.1 Million but is under 10 Million
If the annual salary income exceeds PKR. 4.1 million but does not exceed PKR. 10 million then the rate of income tax is PKR. 616,000 + 35% of the amount exceeding PKR. 4.1 million
Salary income exceeds 10 Million
If the annual salary income exceeds PKR. 10 million then the rate of income tax is PKR 616,000 + 35% of the amount exceeding PKR. 10 million + 9% surcharge on the tax payable amount
Salary Tax Slabs For Tax Year 2024-25 (Direct Tax)
Salary is income under 600,000
If the annual salary income does not exceed PKR. 600,000 then the rate of the income tax is 0%
Salary income exceeds 600,000 but is under 1.2 Million
If the annual salary income exceeds PKR. 600,000 but does not exceed PKR. 1.2 million then the rate of income tax is 5% of the amount exceeding PKR. 600,000.
Salary income exceeds 1.2 Million but is under 2.2 Million
If the taxable annual income exceeds PKR. 1.2 million but does not exceed PKR. 2.2 million then the rate of income tax is PKR. 30,000 + 15% of the amount exceeding PKR. 1.2 million.
Salary income exceeds 2.2 Million but is under 3.2 Million
If the annual salary income exceeds PKR. 2.2 million but does not exceed PKR. 3.2 million then the rate of income tax is PKR 180,000 + 25% of the amount exceeding PKR. 2.2 million
Salary income exceeds 3.2 Million but is under 4.1 Million
If the annual salary income exceeds PKR. 3.2 million but does not exceed PKR. 4.1 million then the rate of income tax is PKR. 430,000 + 30% of the amount exceeding PKR. 3.2 million
Salary income exceeds 4.1 Million but is under or equal to 10 Million
If the annual salary income exceeds PKR. 4.1 million but is less then or equal to 10 million then the rate of income tax is PKR 700,000 + 35% of the amount exceeding PKR. 4.1 million
Salary income exceeds 10 Million
If the annual salary income exceeds PKR. 10 million then the rate of income tax is PKR 700,000 + 35% of the amount exceeding PKR. 4.1 million + 10% surcharge on the tax payable amount
Indirect Taxes Paid By Salaried Class
Grocery
We pay 18% GST on almost all grocery items There are also a number of imported items in our monthly grocery list on which customs duties & sales tax are also paid at the import stage, which cannot be accurately calculated.
Fuel / Maintenance
We pay around Rs.80 per litre for petrol (inclusive of Petroleum Development Levy at Rs.60 per litre and Rs.20 per litre at the import stage).
Electricity
We pay around 33% in indirect taxes on electricity bills such as FC surcharge, GST, electricity duty, PTV fees, and line losses etc.
Gas
We pay 18% GST on Gas bills.
Road Tax
This includes annual motor vehicle taxes and road/toll taxes such as motor fees, etc.
Mobile / PTCL
Services tax @19.5% is charged on PTCL connection/DSL/Cell phones bills.
Dineout
We pay around 16% service tax on dine-outs.
Garments
We pay around 18% GST on garments.
Stationery
10% GST has been assumed after imposition of sales tax by Govt from 1st July 2024 on stationery items.
Milk
RS 75/liter GST has been assumed after imposition of sales tax by Govt from 1st July 2024 on packaged milk.
Important Note
Some people may object that the expenses mentioned above are on the higher side. However, to keep things simple, we would like to clarify that we have not considered or included additional costs such as functions, gatherings, insurance, car maintenance, festivals, family events, medical emergencies, qurbani, kids' educational transportation, and tuition fees. If we were to factor in all these expenses, a person would hardly be left with anything substantial for spending on daily necessities like fruits, vegetables, meat, kids' pocket money, and other essentials!