How the calculation works on PKR 1,00,000 / month
Your annual gross of Rs 12,00,000 reaches the FY 2025-26 salaried slab 2. The marginal rate that applies to your next rupee earned is 1%, while your effective rate works out to 0.50%.
Bracket
Rate
Amount in band
Tax
Up to 600,000
0%
600,000
0
600,001 — 1,200,000
1%
599,999
6,000
Total annual tax
6,000
That works out to roughly Rs 500 a month deducted from your gross — leaving you with Rs 99,500 take-home. Your effective tax rate is 0.50%, even though your marginal rate is 1%.
What changes if you're not salaried?
Earning the same PKR 1,00,000 a month as a business owner or self-employed professional puts you under the non-salaried slab table — bracket rates rise meaningfully. IT exporters under the export-services regime go the other way: a flat 0.25% (PSEB-registered) or 1% (unregistered) on foreign-currency receipts.
Related · From the Journal
Marginal vs effective rate: the difference your boss won't explain →