Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
₨ 413
Social Security
- ₨ 250
Total tax
- ₨ 250
Net pay
* ₨ 163
Marginal tax rate
0.0%
Average tax rate
60.5%
39.5%
Net pay
60.5%
Total tax
Total tax
Net pay
The Taxberg
₨ 163
Net pay
₨ 1,250
Tax the employer pays
₨ 250
Tax you pay
Total tax paid
₨ 1,500
Did you know your employer also pays tax on your salary? It costs the employer ₨ 1,250 to pay you ₨ 413. In other words, every time you spend ₨ 10 of your hard-earned money, ₨ 36.32 goes to the government.
Real tax rate
90.2%
So, with you and the employer both paying tax, what used to be a 60.5% tax rate now rises to 90.2%, meaning your real tax rate is actually 29.7% higher than what it seemed at first.
Summary
If you make ₨ 4,956 a year living in the region of Islamabad Capital Territory, Pakistan, you will be taxed ₨ 3,000. That means that your net pay will be ₨ 1,956 per year, or ₨ 163 per month. Your average tax rate is 60.5% and your marginal tax rate is 0.0%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of ₨ 100 in your salary will be taxed ₨ 0, hence, your net pay will only increase by ₨ 100.
Bonus Example
A ₨ 1,000 bonus will generate an extra ₨ 1,000 of net incomes. A ₨ 5,000 bonus will generate an extra ₨ 5,000 of net incomes.
Tax per region
Region
Net pay
Average tax
Rank
Balochistan
PKR 1956
60.5%
1
Islamabad Capital Territory
PKR 1956
60.5%
2
Khyber Pakhtunkhwa
PKR 1956
60.5%
3
Sindh
PKR 1956
60.5%
4
North America
Country 
Net pay
Average tax
Rank
Canada
PKR 4877
1.6%
1
USA
PKR 4527
8.7%
2
NOTE* Withholding is calculated based on the Islamabad Capital Territory tables of Pakistan, income tax. For simplification purposes some variables (such as marital status and others) have been assumed. This document does not represent legal authority and shall be used for approximation purposes only.