ACCURATE TAX ENGINE
Income Tax Calculator
Updated for Tax Year 2025 - 2026 as per the latest Finance Act. Calculate your exact tax deduction for Salaried Individuals and Business / Non-salaried Entities (Sole proprietors, Business individuals, AOP).
Tax Calculation Inputs
Gross Monthly Income:
Rs. 250,000
Gross Annual Income:
Rs. 3,000,000
Monthly Income Tax:
Rs. 25,000
Annual Income Tax Liability:
Rs. 300,000
Net Monthly Take-Home:
Rs. 225,000
Effective Tax Rate: 10.0%
First Schedule – Part I: Salaried Individuals
Applies where salary income constitutes more than 75% of total taxable income.
| S# | Taxable Income Range (PKR) | Rate of Tax |
|---|---|---|
| 1. | Where taxable income does not exceed Rs. 600,000/- | 0% |
| 2. | Where taxable income exceeds Rs. 600,000/- but does not exceed Rs. 1,200,000/- | 1% of the amount exceeding Rs. 600,000/- |
| 3. | Where taxable income exceeds Rs. 1,200,000/- but does not exceed Rs. 2,200,000/- | Rs. 6,000 + 11% of the amount exceeding Rs. 1,200,000/- |
| 4. | Where taxable income exceeds Rs. 2,200,000/- but does not exceed Rs. 3,200,000/- | Rs. 116,000 + 23% of the amount exceeding Rs. 2,200,000/- |
| 5. | Where taxable income exceeds Rs. 3,200,000/- but does not exceed Rs. 4,100,000/- | Rs. 346,000 + 30% of the amount exceeding Rs. 3,200,000/- |
| 6. | Where taxable income exceeds Rs. 4,100,000/- | Rs. 616,000/- + 35% of the amount exceeding Rs. 4,100,000/- |
First Schedule – Part I: Business / Non-Salaried (Sole proprietors, Business individual, AOP)
Official Tax Rates for Sole Proprietors, Business Individuals, and Association of Persons (AOP).
| S# | Taxable Income Range (PKR) | Rate of Tax |
|---|---|---|
| 1. | Where taxable income does not exceed Rs. 600,000/- | 0% |
| 2. | Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 | 15% of the amount exceeding Rs. 600,000 |
| 3. | Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 1,600,000 | Rs. 90,000 + 20% of the amount exceeding Rs. 1,200,000 |
| 4. | Where taxable income exceeds Rs. 1,600,000 but does not exceed Rs. 3,200,000 | Rs. 170,000 + 30% of the amount exceeding Rs. 1,600,000 |
| 5. | Where taxable income exceeds Rs. 3,200,000 but does not exceed Rs. 5,600,000 | Rs. 650,000 + 40% of the amount exceeding Rs. 3,200,000 |
| 6. | Where taxable income exceeds Rs. 5,600,000 | Rs. 1,610,000 + 45% of the amount exceeding Rs. 5,600,000 |