Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
₨ 90,000
Income Tax
- ₨ 12,981
Social Security
- ₨ 57.69
Total tax
- ₨ 13,038
Net pay
* ₨ 76,962
Marginal tax rate
25.0%
Average tax rate
14.5%
85.5%
Net pay
14.5%
Total tax
Total tax
Net pay
The Taxberg
₨ 76,962
Net pay
₨ 288
Tax the employer pays
₨ 13,038
Tax you pay
Total tax paid
₨ 13,327
Did you know your employer also pays tax on your salary? It costs the employer ₨ 288 to pay you ₨ 90,000. In other words, every time you spend ₨ 10 of your hard-earned money, ₨ 1.48 goes to the government.
Real tax rate
14.8%
So, with you and the employer both paying tax, what used to be a 14.5% tax rate now rises to 14.8%, meaning your real tax rate is actually 0.3% higher than what it seemed at first.
Summary
If you make ₨ 4,680,000 a year living in the region of Islamabad Capital Territory, Pakistan, you will be taxed ₨ 678,000. That means that your net pay will be ₨ 4,002,000 per year, or ₨ 333,500 per month. Your average tax rate is 14.5% and your marginal tax rate is 25.0%. 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 ₨ 25, hence, your net pay will only increase by ₨ 75.
Bonus Example
A ₨ 1,000 bonus will generate an extra ₨ 750 of net incomes. A ₨ 5,000 bonus will generate an extra ₨ 3,750 of net incomes.
Tax per region
Region
Net pay
Average tax
Rank
Balochistan
PKR 4002000
14.5%
1
Islamabad Capital Territory
PKR 4002000
14.5%
2
Khyber Pakhtunkhwa
PKR 4002000
14.5%
3
Sindh
PKR 4002000
14.5%
4
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.