ByThe Pakistani government has consistently revised income tax rates for salaried individuals over the years, reflecting its evolving fiscal strategies. The Finance Act 2024, effective from July 1, 2024, introduced higher tax burdens for many income brackets, marking a significant shift in taxation policies compared to prior years. This article provides a detailed breakdown of salary tax slabs for the fiscal years 2021–2025, enabling taxpayers to understand trends and their implications.
Tax Year 2024-25: Revised Tax Slabs
Effective July 1, 2024, to June 30, 2025, the tax rates for salaried individuals 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 Tax Rates (2021–2025)
To understand the evolving tax burden, here’s a comparative analysis of the past five fiscal years.
Key Highlights:
- 2024-25 vs. 2023-24: The tax burden increased significantly for middle and high-income brackets, with rates for certain slabs rising by up to 5–10%.
- 2022-23 vs. 2021-22: Rates for higher income brackets were adjusted to address fiscal deficits, reducing the burden slightly on lower income earners.
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 |
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 |
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: Key Trends
- Tax Relief for Low-Income Earners: Salaried individuals earning up to PKR 600,000 remain exempt from taxes across all years.
- Higher Taxation for Middle and High-Income Brackets: Each fiscal revision has seen increased rates for those earning above PKR 1.2 million annually.
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is there any difference on tax payable of a salaried persons filer and non filer??
Nope