Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
₨ 71,500
Income Tax
- ₨ 538
Social Security
- ₨ 250
Total tax
- ₨ 788
Net pay
* ₨ 70,713
Marginal tax rate
2.5%
Average tax rate
1.1%
98.9%
Net pay
1.1%
Total tax
Total tax
Net pay
The Taxberg
₨ 70,713
Net pay
₨ 1,250
Tax the employer pays
₨ 788
Tax you pay
Total tax paid
₨ 2,038
Did you know your employer also pays tax on your salary? It costs the employer ₨ 1,250 to pay you ₨ 71,500. In other words, every time you spend ₨ 10 of your hard-earned money, ₨ 0.28 goes to the government.
Real tax rate
2.8%
So, with you and the employer both paying tax, what used to be a 1.1% tax rate now rises to 2.8%, meaning your real tax rate is actually 1.7% higher than what it seemed at first.
Summary
If you make ₨ 858,000 a year living in the region of Khyber Pakhtunkhwa, Pakistan, you will be taxed ₨ 9,450. That means that your net pay will be ₨ 848,550 per year, or ₨ 70,713 per month. Your average tax rate is 1.1% and your marginal tax rate is 2.5%. 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 ₨ 2.50, hence, your net pay will only increase by ₨ 97.50.
Bonus Example
A ₨ 1,000 bonus will generate an extra ₨ 975 of net incomes. A ₨ 5,000 bonus will generate an extra ₨ 4,875 of net incomes.
Tax per region
Region
Net pay
Average tax
Rank
Balochistan
PKR 848550
1.1%
1
Islamabad Capital Territory
PKR 848550
1.1%
2
Khyber Pakhtunkhwa
PKR 848550
1.1%
3
Sindh
PKR 848550
1.1%
4
NOTE* Withholding is calculated based on the Khyber Pakhtunkhwa 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.