Understanding Pakistan’s New Income Tax Slabs for 2024–2025
Through the Finance Act 2024, the Pakistani government has updated the income tax slabs for salaried individuals for the fiscal year 2024–2025. Millions of taxpayers, particularly those in the middle class, are anticipated to be impacted by these changes in an environment where inflation continues to put pressure on household budgets.
To assist you in comprehending how your salary will be taxed this year, let’s simplify it.
Revised Individual Income Tax Slabs for Salaried Employees (FY 2024–25)
| Annual Taxable Income | Tax Rate |
| Up to Rs. 600,000 | 0% |
| Rs. 600,001 – Rs. 1,200,000 | 5% of the amount exceeding Rs. 600,000 |
| Rs. 1,200,001 – Rs. 2,200,000 | Rs. 30,000 + 15% of the amount exceeding Rs. 1,200,000 |
| Rs. 2,200,001 – Rs. 3,200,000 | Rs. 180,000 + 25% of the amount exceeding Rs. 2,200,000 |
| Rs. 3,200,001 – Rs. 4,100,000 | Rs. 430,000 + 30% of the amount exceeding Rs. 3,200,000 |
| Above Rs. 4,100,001 | Rs. 700,000 + 35% of the amount exceeding Rs. 4,100,000 |
Comparing this year to last (FY 2023–24)
In the past, lower income brackets had a somewhat lighter tax burden.
For example:
| Annual Taxable Income | 2023–24 Tax Rate |
| Rs. 600,001 – Rs. 1,200,000 | 2.5% of the amount exceeding Rs. 600,000 |
| Rs. 1,200,001 – Rs. 2,400,000 | Rs. 15,000 + 12.5% of the amount exceeding Rs. 1,200,000 |
| Rs. 2,400,001 – Rs. 3,600,000 | Rs. 165,000 + 22.5% of the amount exceeding Rs. 2,400,000 |
| Rs. 3,600,001 – Rs. 6,000,000 | Rs. 435,000 + 27.5% of the amount exceeding Rs. 3,600,000 |
| Above Rs. 6,000,001 | Rs. 1,095,000 + 35% of the amount exceeding Rs. 6,000,000 |
What Does This Mean for You?
The following are the effects of the updated slabs on different income levels:
- Rs. 1.2 million a year, or Rs. 100,000 a month
Rs. 1,250 was the previous tax.
For entry-level taxpayers, the new tax is Rs. 2,500 - Rs. 6 million annually
The previous tax was around Rs. 1,095,000.
The new tax is approximately Rs. 1,117,500.
An annual increase of Rs. 22,500. - One million rupees per month, or twelve million rupees annually
The previous tax was about Rs. 2,595,000.
The fresh tax will come to approximately Rs. 2,617,000.
A reasonable increase of Rs. 22,000 annually.
Despite the tax-free Rs. 600,000 threshold, rates on every other slab have been increased, indicating a higher burden on salaried individuals who already have to deal with high cost of living.
Why It’s More Important Than Ever to Become a Filer
As tax rates rise, filing is more about saving money and maintaining security than it is about simply complying with the law. This is the reason:
- Reduced banking, auto, and real estate withholding taxes
- Eligibility for refunds and tax credits
- Protection from penalties
- Better financial credibility
If you’re not a filer yet, now’s the time to take action!
Need Help with Filing?
Tax filing doesn’t have to be painful or take a lot of time. With sites like Corptax Solutions, you can prepare your return in less than 6 minutes — with the guidance of qualified tax professionals who know the new rules.
Final Thoughts
The tax slab revisions for FY 2024–25 are the government’s effort to broaden the tax base and raise revenue — but at the expense of middle- and high-income salaried taxpayers.
Pre-planning, estimating your dues, and submitting your return within time can keep you in front of the queue.