* Last updated: 01 July 2024.
Introduction
Understanding the latest income tax rates is crucial for salaried individuals in Pakistan. The tax landscape evolves each year, and the Federal Government has released updated tax slabs for the tax year 2025, applicable under the Income Tax Ordinance, 2001, amended up to June 30, 2024. In this guide, we’ll explain the new tax slabs and provide a user-friendly tax calculator to help you quickly determine your tax liability.
Revised Tax Slabs for Salaried Individuals
Here are the tax slabs for salaried individuals for the tax year 2025:
| Taxable Income (Rs.) | Tax Rate |
|---|---|
| Up to Rs. 600,000 | 0% |
| Rs. 600,001 to Rs. 1,200,000 | 5% on the amount exceeding Rs. 600,000 |
| Rs. 1,200,001 to Rs. 2,200,000 | Rs. 30,000 + 15% on the amount exceeding Rs. 1,200,000 |
| Rs. 2,200,001 to Rs. 3,200,000 | Rs. 180,000 + 25% on the amount exceeding Rs. 2,200,000 |
| Rs. 3,200,001 to Rs. 4,100,000 | Rs. 430,000 + 30% on the amount exceeding Rs. 3,200,000 |
| Over Rs. 4,100,000 | Rs. 700,000 + 35% on the amount exceeding Rs. 4,100,000 |
How to Use the Tax Calculator
We have created an automated tax calculator to make it easier for salaried individuals to calculate their annual tax liability. Simply enter your monthly salary into the calculator, and it will:
- Compute your annual income.
- Determine your monthly and yearly tax liability based on the new slabs.
This tool helps you save time and avoid errors in manual calculations.
Why Knowing Your Tax Rates Matters
Being aware of the updated tax rates allows you to:
- Plan Finances: Knowing your expected tax liability helps you budget better and allocate funds for savings.
- Ensure Compliance: Pay the correct amount of tax to avoid penalties and late fees.
- Optimize Tax Savings: Plan deductions and allowances to reduce your taxable income.