Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
₨ 500
Social Security
- ₨ 125
Total tax
- ₨ 125
Net pay
* ₨ 375
Marginal tax rate
0.0%
Average tax rate
25.0%
75.0%
Net pay
25.0%
Total tax
Total tax
Net pay
The Taxberg
₨ 375
Net pay
₨ 625
Tax the employer pays
₨ 125
Tax you pay
Total tax paid
₨ 750
Did you know your employer also pays tax on your salary? It costs the employer ₨ 625 to pay you ₨ 500. In other words, every time you spend ₨ 10 of your hard-earned money, ₨ 15 goes to the government.
Real tax rate
66.7%
So, with you and the employer both paying tax, what used to be a 25% tax rate now rises to 66.7%, meaning your real tax rate is actually 41.7% higher than what it seemed at first.
Summary
If you make ₨ 12,000 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 ₨ 9,000 per year, or ₨ 750 per month. Your average tax rate is 25.0% 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 9000
25.0%
1
Islamabad Capital Territory
PKR 9000
25.0%
2
Khyber Pakhtunkhwa
PKR 9000
25.0%
3
Sindh
PKR 9000
25.0%
4
North America
Country 
Net pay
Average tax
Rank
Canada
PKR 11810
1.6%
1
USA
PKR 10959
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.