Salary Tax Slabs 2024-25 Pakistan

Salary Tax Slabs 2024-25 Pakistan

The government cut the number of income tax brackets from seven to six. This change made taxes higher for those making Rs500,000 or more each month. 

The new tax rates started on July 1, and the extra taxes were first taken from employee salaries in August. 

You can check the income tax calculator to find out how the new tax rates have influenced your earnings after tax and what your yearly tax payment will be.The table below lists the new salary tax slabs for 2024-25 Pakistan:

Updated Salary Tax Slabs 2024-2025

Here’s a breakdown of the new tax slabs:

Income RangeTax RateFixed Tax
Up to Rs 600,0000%Nil
Rs 600,000 – Rs 1,200,0005%Nil
Rs 1,200,000 – Rs 2,200,00015%Rs 30,000
Rs 2,200,000 – Rs 3,200,00025%Rs 180,000
Rs 3,200,000 – Rs 4,100,00030%Rs 430,000
Over Rs 4,100,00035%Rs 700,000
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Key Points of Salary Tax Slabs 2024-2025

  • The Federal Board of Revenue (FBR) has shown a new tax card for the fiscal year 2024-25, giving tax relief for people with jobs, mainly low-income ones.
  • In the new tax rules, a yearly income of Rs 600,000 will not have tax. For earnings over this limit, the tax rates change like this:
  • Income from Rs 600,000 to Rs 1.2 million: 5% tax
  • Income from Rs 1.2 million to Rs 2.2 million: Rs 30,000 fixed tax plus 15% on any amount over Rs 1.2 million
  • Income from Rs 2.2 million to Rs 3.2 million: Rs 180,000 fixed tax plus 25% on any amount over Rs 2.2 million
  • Income from Rs 3.2 million to Rs 4.1 million: Rs 430,000 fixed tax plus 30% on any amount over Rs 3.2 million
  • Any income above Rs 4.1 million: Rs 700,000 fixed tax plus 35% on money over Rs 4.1 million

You should consult with a tax professional for specific advice on your income tax situation.

Income Tax Calculator for FY 2023-24

You can calculate your income tax With AAj News

Frequently Asked Questions

The basic salary in Pakistan is the minimum wage and the total pay for federal government civil workers and defense-paid civilians. This was raised from Rs32,000 to Rs37,000 monthly, starting on July 1, 2024.

The Pakistan government has different tax-saving options like National Savings Schemes (NSS), Mutual Funds, and Pension Funds that offer tax advantages. Putting money into these options can lower your taxable income, which means you pay less tax.

To figure out the basic salary from the Gross salary, you need to subtract all allowances, benefits, bonuses, and so on. The formula for this calculation is Basic Salary = Gross Salary – (Total allowances + benefits + bonuses, etc.).

Medical allowance is usually taxable in Pakistan. However, tax laws permit a 10% exemption on your basic salary for medical costs. This lets you lower your taxable income by that amount.

Wrapping Up

To sum up, lowering income tax brackets from seven to six in Pakistan affects the tax burden for people earning Rs 500,000 monthly or more.
New salary tax slabs 2024-25 Pakistan started July 1, 2023, leading to increased tax deductions from salaries.
Some individuals might see benefits from the lower fixed income tax, but it is important to use the income tax calculator to figure out your post-tax earnings.
This helps clarify how these changes affect your finances. We suggest you consult with WaysTax and get expert advice on tax planning and optimization.

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