FY 2025–26 · Salaried Updated for FY 2025-26 slabs

How much tax do I pay on a Rs 1.5 lakh monthly salary in Pakistan?

Annual gross
Rs 18,00,000
Annual tax
Rs 72,000
Monthly take-home
Rs 1,44,000
Effective rate
4.00%
Numbers above assume salaried filer status under FY 2025-26 FBR slabs, no deductions. Adjust for your situation below.
Adjust for your situation
Open full calculator →
Monthly salary
PKR
Taxpayer type
Tax year
Take-home 96.0%
Tax 4.00%
Glad this helped
TaxWizard is free to use. If a piece saved you time, you can drop a dollar in the jar.
Support TaxWizard · $1 Secure checkout via Stripe · no account needed

How the calculation works on PKR 1,50,000 / month

At 150,000 a month, tax stops being pocket change. That's 1,800,000 a year, which puts you in the 11% slab. The income between 1,200,000 and 1,800,000 is taxed at 11%, on top of the 6,000 carried over from the band below, so you land at 72,000 for the year, or 6,000 a month. Your effective rate is 4%, but your marginal rate is now 11%, so this is where I notice raises starting to feel the bite a little.

Bracket
Rate
Amount in band
Tax
Up to 600,000
0%
600,000
0
600,001 to 1,200,000
1%
599,999
6,000
1,200,001 to 2,200,000
11%
599,999
66,000
Total annual tax
72,000

That works out to roughly Rs 6,000 a month deducted from your gross, leaving you with Rs 1,44,000 take-home. Your effective tax rate is 4.00%, even though your marginal rate is 11%.

What changes if you're not salaried?

By 1,800,000 a year the gap between salaried and business tax is clearly visible: the non-salaried table charges more on this band, so a freelancer or AOP on the same 150,000 pays noticeably more. The big exception is IT export work. If you're registered with PSEB, that's a flat 0.25% on foreign-currency receipts, which is far lower than either salaried or business rates.

Related · From the Journal
Marginal vs effective rate: the difference your boss won't explain →
Questions about this salary band

On Rs 1.5 lakh a month, here's what people ask.

If the slab says 11%, why is my effective rate only 4%? +

This is my favourite thing to explain, because it puts a lot of people at ease. The 11% only applies to the slice of income above 1,200,000, not your whole salary. Your first 600,000 is tax-free, the next 600,000 is taxed at 1%, and only the top 600,000 hits 11%. Blend all of that across your full pay and it averages out to about 4%.

How much of a raise do I actually keep? +

At this band, every extra rupee up to 2,200,000 a year is taxed at 11%, so you pocket 89 paisa of each one. In real terms, a 10,000 a month raise nets you roughly 8,900 a month. Still very much worth taking.

Do pension contributions help at this level? +

They start to. Approved voluntary pension (VPS) contributions reduce your taxable income, and at an 11% marginal rate every 100 you put in saves you 11 in tax while building your retirement pot. This is about the income where I'd start taking that trade seriously.

Skip to main content