Pakistan Payroll Tax Calculator – Online Payroll Tax Calculator

This is the latest tax calculator according to the 2021-2022 budget presented by the PTI government.

Income tax plates

In accordance with the Federal Budget 2020-2021 presented by the Government of Pakistan, the following income tax slabs and rates will be applicable to salaried persons for the year 2021-2022:

  1. When the taxable salary income does not exceed Rs. 600,000, the income tax rate is 0.

  2. When the taxable salary income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 the income tax rate is 5% of the amount exceeding Rs. 600,000.

  3. When the taxable wage income exceeds Rs. 1,200,000 but does not exceed Rs. 1,800,000 the income tax rate is Rs. 30,000 + 10% of the amount exceeding Rs. 1,200,000.

  4. When the taxable salary income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000 the income tax rate is Rs. 90,000 + 15% of the amount exceeding Rs. 1,800,000.

  5. When the taxable salary income exceeds Rs. 2,500,000 but does not exceed Rs. 3,500,000 the income tax rate is Rs. 195,000 + 18% of the amount exceeding Rs. 2,500,000.

  6. When the taxable salary income exceeds Rs. 3,500,000 but does not exceed Rs. 5,000,000 the income tax rate is Rs. 370,000 + 20% of the amount exceeding Rs. 3,500,000.

  7. When the taxable salary income exceeds Rs. 5,000,000 but does not exceed Rs. 8,000,000 the income tax rate is Rs. 670,000 + 23% of the amount exceeding Rs. 5,000,000.

  8. When the taxable salary income exceeds Rs. 8,000,000 but does not exceed Rs. 12,000,000 the income tax rate is Rs. 1,345,000 + 25% of the amount exceeding Rs. 8,000,000.

  9. When the taxable salary income exceeds Rs. 12,000,000 but does not exceed Rs. 30,000,000 the income tax rate is Rs. 2,345,000 + 28% of the amount exceeding Rs. 12,000,000.

  10. When the taxable salary income exceeds Rs. 30,000,000 but does not exceed Rs. 50,000,000 the income tax rate is Rs. 7,295,000 + 30% of the amount exceeding Rs. 30,000,000.

  11. When the taxable salary income exceeds Rs. 50,000,000 but does not exceed Rs. 75,000,000 the income tax rate is Rs. 13,295,000 + 33% of the amount exceeding Rs. 50,000,000.

  12. When the taxable wage income exceeds Rs. 75,000,000 the income tax rate is Rs. 21,420,000 + 35% of the amount exceeding Rs. 75,000,000.

What is the Income Tax Calculator?

The Income Tax Calculator is an easy-to-use online tool that helps you estimate your taxes based on your income after the federal budget is presented. We’ve updated our tool in line with income tax changes proposed in the 2021-2022 federal budget. (Read highlights here)

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