1. Pakistan Income Tax Structure 2023-24

The Pakistan income tax system for FY 2023-24 follows a progressive tax structure with different rates applied to various income brackets. This calculator helps estimate your tax liability based on your annual income.

2. How Tax Calculation Works

The calculator applies progressive tax rates to different portions of your income:

3. Tax Brackets and Rates

Tax Rates for FY 2023-24:

• Up to PKR 600,000: 0%
• PKR 600,001 - 1,200,000: 2.5% of amount exceeding PKR 600,000
• PKR 1,200,001 - 2,400,000: PKR 15,000 + 12.5% of amount exceeding PKR 1,200,000
• PKR 2,400,001 - 3,600,000: PKR 165,000 + 20% of amount exceeding PKR 2,400,000
• PKR 3,600,001 - 6,000,000: PKR 405,000 + 25% of amount exceeding PKR 3,600,000
• PKR 6,000,001 - 12,000,000: PKR 1,005,000 + 32.5% of amount exceeding PKR 6,000,000
• Above PKR 12,000,000: PKR 2,955,000 + 35% of amount exceeding PKR 12,000,000

4. Using the Calculator

Instructions: Enter your annual income in PKR. The calculator will automatically compute your tax liability based on the current tax brackets.

5. Frequently Asked Questions (FAQ)

Q1: Is this calculator official?
A: This is for estimation only. Always consult FBR or a tax professional for official calculations.

Q2: Are there any tax credits or deductions?
A: This calculator doesn't account for deductions or credits that may apply to your situation.

Q3: What about salaried vs. non-salaried individuals?
A: This calculator uses standard rates. Different rates may apply to specific taxpayer categories.

Q4: How often are tax brackets updated?
A: Tax brackets are typically revised in the annual federal budget.

Q5: What if I have income from multiple sources?
A: You should sum all taxable income before using this calculator.