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Pakistan Income Tax Rates 2024-2025

Current Income Tax Slabs in Pakistan
Annual Income (PKR)Tax RateTax Amount
Up to 600,0000%No tax
600,001 to 1,200,0005% of amount exceeding 600,000Up to 30,000
1,200,001 to 2,200,00030,000 + 15% of amount exceeding 1,200,00030,000 to 180,000
2,200,001 to 3,200,000180,000 + 25% of amount exceeding 2,200,000180,000 to 430,000
3,200,001 to 4,100,000430,000 + 30% of amount exceeding 3,200,000430,000 to 700,000
Above 4,100,000700,000 + 35% of amount exceeding 4,100,000Over 700,000

Understanding Pakistan Income Tax Rates

Pakistan follows a progressive tax system, which means that as your income increases, the percentage of tax you pay also increases. The tax rates shown above are for the fiscal year 2024-2025 as per the latest regulations from the Federal Board of Revenue (FBR).

For salaried individuals, income tax is typically deducted at source by employers through a system known as "withholding tax." Freelancers and business owners need to calculate and pay their taxes based on their annual income.

How to Calculate Your Income Tax

To calculate your income tax liability in Pakistan, you need to:

  1. Determine your total annual income
  2. Identify which tax slab your income falls into
  3. Apply the corresponding tax calculation formula
  4. Subtract any applicable tax credits or exemptions

For example, if your annual income is PKR 1,500,000:

  • You fall into the third tax slab (1,200,001 to 2,200,000)
  • Your tax would be: 30,000 + 15% of (1,500,000 - 1,200,000)
  • 30,000 + 15% of 300,000 = 30,000 + 45,000 = 75,000 PKR

Use our PayWise calculator to automatically calculate your income tax based on your monthly or hourly income.

Tax Deductions and Exemptions

The Pakistan tax code provides several deductions and exemptions that can reduce your taxable income, including:

  • Zakat payments
  • Charitable donations to approved institutions
  • Medical expenses (under certain conditions)
  • Education expenses
  • Investment in approved pension schemes
  • Contributions to approved provident funds

Calculate Your Exact Tax Liability

Use our free PayWise calculator to quickly determine your exact tax liability based on the latest tax regulations.

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