Business Desk 
Sep 26, 2025
The federal government regularly updates income tax rates to align with fiscal year policies and economic conditions.
As a taxpayer in Pakistan, understanding the taxation of your income is important to ensure compliance with the law and prevent any legal issues. Notably, taxation of salary income differs for resident and non-resident individuals.
What are resident and non-resident individuals?
For resident individuals, any income earned by them, whether through physical or online channels, is taxable in Pakistan. This includes salary income earned from employment under an employment contract.
Meanwhile, for non-resident individuals, only the income earned from a Pakistani source is taxable. This means that if you are a non-resident Pakistani earning salary income from a foreign employer, that income is exempt from tax in Pakistan.
According to the Federal Board of Revenue (FBR), taxpayers can file their income tax return for the fiscal year 2024-25 until September 30.
It is worth noting that after the deadline, filing income tax returns 2025 may result in penalties and other consequences.
Salary tax rates 2024-25 Pakistan
Gadinsider has got you a breakdown of the income tax rates for salaried individuals in Pakistan for 2025-26, effective from July 1, 2025, till June 30, 2026:
| Taxable income | Salary tax rate |
| Income up to Rs600,000 | 0% tax (no deduction) |
| Income Rs600,001 to Rs1,200,000 | 1% on the amount exceeding Rs600,000 |
| Income Rs1,200,001 to Rs2,200,000 | Rs6,000 plus 11% on the amount exceeding Rs1,200,000 |
| Income Rs2,200,001 to Rs3,200,000 | Rs116,000 plus 23% on the amount exceeding Rs2,200,000 |
| Income Rs3,200,001 to Rs4,100,000 | Rs346,000 plus 30% on the amount exceeding Rs3,200,000 |
| Income above Rs4,100,000 | Rs616,000 plus 35% on the amount exceeding Rs4,100,000 |
Notably, filing your income tax returns in Pakistan ensures that the income tax for salaried person is recorded without error by the FBR.
How to calculate tax on salary?
Gadinsider has designed an easy-to-access tax calculator to help you determine your tax. By simply inputting your income, you will know the exact amount of tax to be deducted from your salary.
