Revised Income Tax Slabs for Salaried Individuals – FY 2024–2025 (Pakistan)
The Government of Pakistan has officially announced the updated income tax slabs for salaried individuals for the fiscal year 2024–2025. These revisions, enacted through the Finance Act 2024, reflect a tighter grip on salaried taxpayers amid rising inflation and economic challenges.
Key Updates
Increased Tax on Low-Mid Incomes: Salaried individuals earning between Rs. 600,001 and Rs. 1,200,000 annually will now face a 5% tax rate on income exceeding Rs. 600,000—a jump from the previous 2.5%.
Six-Tier Tax Structure Maintained: Despite changes in rates and thresholds, the government has retained the six-slab system.
Higher Tax Burden for Upper-Middle Earners: Taxpayers in higher income brackets—especially those earning Rs. 6 million or more annually—will see notable increases in their tax liabilities.
New Income Tax Slabs (FY 2024–25)
| Annual Income (PKR) | Tax Rate |
|---|---|
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 5% of the amount exceeding Rs. 600,000 |
| 1,200,001 – 2,200,000 | Rs. 30,000 + 15% of the amount exceeding Rs. 1,200,000 |
| 2,200,001 – 3,200,000 | Rs. 180,000 + 25% of the amount exceeding Rs. 2,200,000 |
| 3,200,001 – 4,100,000 | Rs. 430,000 + 30% of the amount exceeding Rs. 3,200,000 |
| 4,100,001 and above | Rs. 700,000 + 35% of the amount exceeding Rs. 4,100,000 |
Comparison with Previous Slabs (FY 2023–24)
| Annual Income (PKR) | Old Tax Rate |
|---|---|
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 2.5% of the amount exceeding Rs. 600,000 |
| 1,200,001 – 2,400,000 | Rs. 15,000 + 12.5% of the amount exceeding Rs. 1,200,000 |
| 2,400,001 – 3,600,000 | Rs. 165,000 + 22.5% of the amount exceeding Rs. 2,400,000 |
| 3,600,001 – 6,000,000 | Rs. 435,000 + 27.5% of the amount exceeding Rs. 3,600,000 |
| 6,000,001 and above | Rs. 1,095,000 + 35% of the amount exceeding Rs. 6,000,000 |
Real-World Impact
Middle-Income Earners Hit Hard: Individuals earning Rs. 6 million annually (Rs. 500,000/month) will pay Rs. 22,500 more in taxes compared to last year.
High-Income Brackets Also Affected: A person earning Rs. 12 million annually (Rs. 1 million/month) will see a tax increase of Rs. 22,000.
Low-Income Individuals Not Spared: A person earning Rs. 100,000/month will now pay Rs. 2,500/month in tax, compared to Rs. 1,250 previously.
While the exemption threshold remains unchanged at Rs. 600,000 annually, the pressure on all other brackets has grown.
Need Help Filing Your Taxes?
Filing taxes can be confusing—but it doesn’t have to be. At Ali Law Associates, our expert tax consultants help you file your returns quickly, accurately, and stress-free.
Whether you’re a salaried individual or a business owner, our team ensures full compliance and maximized benefits.
File your tax return in just minutes—contact Ali Law Associates today and take control of your finances with confidence.