Income Tax Slab 2024-2025 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 new salary tax slabs for 2024-2025 in Pakistan:
FBR Income Tax Slab 2024-2025 for a Salaried person
Here’s a breakdown of the new tax slab for a salaried person:
| Income Range | Tax Rate | Fixed Tax |
| Up to Rs 600,000 | 0% | Nil |
| Rs 600,000 – Rs 1,200,000 | 5% | Nil |
| Rs 1,200,000 – Rs 2,200,000 | 15% | Rs 30,000 |
| Rs 2,200,000 – Rs 3,200,000 | 25% | Rs 180,000 |
| Rs 3,200,000 – Rs 4,100,000 | 30% | Rs 430,000 |
| Over Rs 4,100,000 | 35% | Rs 700,000 |
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Key Points of Salary Income Tax Slab 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 Rates in Pakistan (2021–25) | A Comparison
Pakistan’s government has changed the salaried person tax slab rates over the years to address economic challenges and increase revenue. Here’s a simple breakdown of how tax rates changed from 2021 to 2025:
Yearly Tax Changes
- 2024-25 vs. 2023-24: The government increased taxes for middle- and high-income earners by 5-10% to collect more revenue and reduce the fiscal deficit.
- 2023-24 vs. 2022-23: Authorities raised taxes on higher-income groups to maintain a fair and progressive tax system.
- 2022-23 vs. 2021-22: Officials adjusted tax rates to manage inflation, economic difficulties, and revenue targets.
The tax slabs from previous years clearly show these changes.
Income Tax Calculator for FY 2024-25
Use this Pakistan tax calculator to calculate tax on your income in 2024-25.
Income Tax Slab 2024-2025: FAQs
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 income tax slab 2024-2025 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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