Introduction – Salary Tax Slabs 2024-25 Pakistan:
Salaried people should expect some significant upgrades as Pakistan enters a new fiscal year. The government has proposed new salary tax slabs for 2024–2025 under the Finance Bill 2025 effective from July 1, 2025. In order to keep a progressive tax structure these adjustments show a change in tax policy that aims. Meanwhile these adjustments also help middle-class taxpayers.
We dissect the most recent salary tax slabs, contrast them with prior years, and describe how these adjustments will affect your monthly income in this guide.
2024–2025 Salary Tax Slabs (Proposed):
| Annual Salary (PKR) | Tax Rate |
|---|---|
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 2.5% of the amount exceeding 600,000 |
| 1,200,001 – 2,200,000 | PKR 15,000 + 11% of the amount exceeding 1,200,000 |
| 2,200,001 – 3,200,000 | PKR 125,000 + 23% of the amount exceeding 2,200,000 |
| 3,200,001 – 4,100,000 | PKR 355,000 + 30% of the amount exceeding 3,200,000 |
| Above 4,100,000 | PKR 625,000 + 35% of the amount exceeding 4,100,000 |
Key Takeaway: Many middle-class workers will now face less stress from these new rates. As compared to what they did the previous year. That’s why this is a fantastic news for salaried workers!
Previous Year: Salary Tax Slabs 2024–25 (Current):
| Annual Salary (PKR) | Tax Rate |
|---|---|
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 5% of the amount exceeding 600,000 |
| 1,200,001 – 2,200,000 | PKR 30,000 + 15% of the amount exceeding 1,200,000 |
| 2,200,001 – 3,200,000 | PKR 180,000 + 25% of the amount exceeding 2,200,000 |
| 3,200,001 – 4,100,000 | PKR 430,000 + 30% of the amount exceeding 3,200,000 |
| Above 4,100,000 | PKR 700,000 + 35% of the amount exceeding 4,100,000 |
In comparison, FY 2025–26 offers reduced tax percentages. Also there is a fixed deductions across several brackets.
A Brief Overview of the History of Salary Tax Slabs from 2021 to 2024:
FY 2023–2024
- raising taxes on middle-class and upper-class individuals.
- For income over PKR 6 million, the maximum rate is 35%.
FY 2022–2023
- gradual raises to meet income goals and inflationary pressure.
- For income over PKR 12 million, the maximum rate is 35%.
FY 2021–2022
- lower marginal rates but wider brackets.
- For income over PKR 8 million, the maximum rate is 25%.
What’s Changing in 2025–26?
Tax Relief for Middle Class
- Lower fixed amounts and marginal percentages.
- More take-home income for salaried professionals earning between PKR 1.2–3.2 million annually.
Consistent Exemption for Low-Income Brackets
- Those earning up to PKR 600,000 annually continue to enjoy 0% tax—no change here.
Simplicity & Fairness
The slab structure remains progressive, targeting high-income groups while easing the burden on others.
Important Things for Salaried Taxpayers to Know
Plan Ahead: Determine your pay bracket and, if at all possible, modify your pay scale.
Remain Compliant: Use reputable internet portals or tax experts to make sure you file your tax return correctly.
Tax Optimization: Take into account deductions such as Zakat, charitable contributions, and retirement plan investments to reduce your tax obligation.
Final Thoughts:
The government wants to reconcile revenue creation and equity with fiscal changes of 2025-2026. These new salary tax slabs show a deliberate effort to ensure that high-income individuals pay their fair amount. Meanwhile, they these salary tax slabs also help the working class.
You must keep abreast of tax developments to keep yourself ahead of the curve. Regardless of your employment status-salary, freelancer, or business owner. For upcoming updates and comprehensive instructions on Pakistani salary taxes, bookmark this page.
