The income tax rates for salaried individuals in Pakistan have been changed every year from 2021 to 2025. It show the changes in the fiscal policies of the government for a salary individual. With the Finance Act 2024, which was implemented on July 1, 2024, there were significant changes introduced. The increasing tax burden for several income brackets. This article provides a comparison of the salary tax slabs for the fiscal years 2021–2025. To help taxpayers understand the changes and their potential impact.
Salary Tax Rates 2024-25
Revised Tax Slabs for Tax Year 2024-25
The rates for salary individual effective July 1, 2024, to June 30, 2025, are as follows:
| Annual Salary (PKR) | Tax Rate 2025 |
|---|---|
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 5% of the amount exceeding PKR 600,000 |
| 1,200,001 – 2,200,000 | PKR 30,000 + 15% of the amount exceeding PKR 1,200,000 |
| 2,200,001 – 3,200,000 | PKR 180,000 + 25% of the amount exceeding PKR 2,200,000 |
| 3,200,001 – 4,100,000 | PKR 430,000 + 30% of the amount exceeding PKR 3,200,000 |
| Above 4,100,000 | PKR 700,000 + 35% of the amount exceeding PKR 4,100,000 |
Comparison of Salary Individual Tax Rates (2021–2025)
The income-tax rates of the salaried in Pakistan have recorded notable shifts in the last five fiscal years. They are consistent with a changing fiscal objective. It brought in a considerably elevated tax burden for the first time during 2024–25 over 2023–24, mainly affecting those at middle to high-income levels. Especially because for several slabs, the relevant rates jumped 5–10%.
Contrasting this with the fiscal year 2022–23, there were changes to deal with fiscal deficits. Here, higher income groups had slight rate increases. But the lower-income groups received some relief. This comparison thus reveals how the government is adapting to changing its strategies of revenue generation while keeping socio-economic considerations in mind.
Salary Individual Tax Rates for Tax Year 2023-24
| Annual Salary (PKR) | Tax Rate 2024 |
|---|---|
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 2.5% of the amount exceeding PKR 600,000 |
| 1,200,001 – 2,400,000 | PKR 15,000 + 12.5% of the amount exceeding PKR 1,200,000 |
| 2,400,001 – 3,600,000 | PKR 165,000 + 22.5% of the amount exceeding PKR 2,400,000 |
| 3,600,001 – 6,000,000 | PKR 435,000 + 27.5% of the amount exceeding PKR 3,600,000 |
| Above 6,000,000 | PKR 1,095,000 + 35% of the amount exceeding PKR 6,000,000 |
Salary Individual Tax Rates for Tax Year 2022-23
| Annual Salary (PKR) | Tax Rate 2023 |
|---|---|
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 2.5% of the amount exceeding PKR 600,000 |
| 1,200,001 – 2,400,000 | PKR 15,000 + 12.5% of the amount exceeding PKR 1,200,000 |
| 2,400,001 – 3,600,000 | PKR 165,000 + 20% of the amount exceeding PKR 2,400,000 |
| 3,600,001 – 6,000,000 | PKR 405,000 + 25% of the amount exceeding PKR 3,600,000 |
| 6,000,001 – 12,000,000 | PKR 1,005,000 + 32.5% of the amount exceeding PKR 6,000,000 |
| Above 12,000,000 | PKR 2,955,000 + 35% of the amount exceeding PKR 12,000,000 |
Salary Individual Tax Rates for Tax Year 2021-22
| Annual Salary (PKR) | Tax Rate 2022 |
|---|---|
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 5% of the amount exceeding PKR 600,000 |
| 1,200,001 – 1,800,000 | PKR 30,000 + 10% of the amount exceeding PKR 1,200,000 |
| 1,800,001 – 2,500,000 | PKR 90,000 + 15% of the amount exceeding PKR 1,800,000 |
| 2,500,001 – 3,500,000 | PKR 195,000 + 17.5% of the amount exceeding PKR 2,500,000 |
| 3,500,001 – 5,000,000 | PKR 370,000 + 20% of the amount exceeding PKR 3,500,000 |
| 5,000,001 – 8,000,000 | PKR 670,000 + 22.5% of the amount exceeding PKR 5,000,000 |
| Above 8,000,000 | PKR 1,345,000 + 25% of the amount exceeding PKR 8,000,000 |
Conclusion
Over the years, key trends in Pakistan’s income tax policies have changing. Low-income persons, especially those earning up to PKR 600,000 annually, have always been exempted from paying taxes throughout all fiscal years. Middle and high-income persons, however, have faced increasing tax rates. Especially those earning above PKR 1.2 million annually, as each fiscal revision has resulted in an increase in their tax burden.
Also read:
- Income-Tax-Return-Master-Course-Legalversity
- How to Make NTN Number in Pakistan?
- Income Tax Filing Service in Pakistan
