The Income Tax Salary Slabs 2024 25 apply to residents’ worldwide income, while non-residents are taxed only on income sourced within Pakistan. This includes income received or deemed to be received within the country, such as salary.
For non-residents, salary is considered Pakistan-source income as long as it relates to employment exercised within Pakistan, regardless of where the payment is made. The Income Tax Salary Slabs 2024-25 structures continues to apply these principles.
Personal Income Tax Salary Slabs 2024 25
The following tax rates apply where income of the individual from salary exceeds 75% of taxable income:
| Taxable Income (PKR) | Tax on Column 1 (PKR) | Tax on Excess (%) | |
| Over (Column 1) | Not Over | ||
| 0 | 600,000 | 0 | |
| 600,000 | 1,200,000 | 5 | |
| 1,200,000 | 2,200,000 | 30,000 | 15 |
| 2,200,000 | 3,200,000 | 180,000 | 25 |
| 3,200,000 | 4,100,000 | 430,000 | 30 |
| 4,100,000 | 700,000 | 35 | |
AOP Tax Rate Slabs 2024-25
The following tax rates are applicable in other cases (for individuals and associations of persons [AOPs]):
| Taxable income (PKR) | Tax on column 1 (PKR) | Tax on excess (%) | |
| Over (column 1) | Not over | ||
| 0 | 600,000 | 0 | |
| 600,000 | 1,200,000 | 15 | |
| 1,200,000 | 1,600,000 | 90,000 | 20 |
| 1,600,000 | 3,200,000 | 170,000 | 30 |
| 3,200,000 | 5,600,000 | 650,000 | 40 |
| 5,600,000 | 1,610,000 | 45 | |
Salaried individuals and Associations of Persons (AOPs) with taxable income exceeding PKR 10 million in a year are subject to a 10% surcharge on their total income tax liability. For professional firms, especially those that cannot incorporate under the rules of their governing bodies, a maximum tax rate of 40% has been set. This affects many professionals, including lawyers and consultants, who fall under the Income Tax Salary Slabs 2024-25 guidelines.
When it comes to withholding requirements, employers are generally required to deduct income tax directly from salaries at the rates specified in the current Income Tax Salary Slabs 2024-25. These withholding tax (WHT) rates can differ based on whether the individual or vendor is an active taxpayer, and are applied across various goods, services, and contracts executed by individuals or AOPs.
At the local level, federal income tax remains the only significant tax imposed on salaries in Pakistan, making the compliance with the Income Tax Salary Slabs 2024-25 a critical aspect for salaried workers across the nation.
The Government to Eliminate Tax Concessions in Budget 2024-25, aiming to reduce benefits that disproportionately favor high-income earners over the middle-class workforce. The International Monetary Fund (IMF) has recommended taxing salaried employees’ income similarly to non-salaried individuals.
However, the Federal Board of Revenue (FBR) argues that these income types are different, and aligning them could increase the tax burden on the salaried class. The Government to Eliminate Tax Concessions in Budget 2024-25 includes plans to raise Rs500 billion, focus on pension taxes, and remove exemptions. Additionally, withholding taxes will increase, alongside potential taxes on raw material imports.
