Income Tax Calculator for Salaried Individuals 2024-25 in Pakistan

For the past three years, the salary exemption limit has been Rs50,000 per month. Now, the Government of Pakistan has proposed significant changes to the taxes on income above this amount, which will affect salaried individuals.

Income Tax Calculator for Salaried Individuals

Summary of Income Tax rate for the year 2024-25 for salaried persons in Pakistan

According to the Finance Bill 2024:

  1. Salaries between Rs50,000 and Rs100,000 per month: The tax rate will double from 2.5% to 5% on the income above Rs.50,000/-.
  2. Tax calculation formula: no tax
  3. Salaries between Rs100,000 and Rs200,000 per month: The tax rate will increase from 12.2% to 15% on the income above Rs100,000. Additionally, the fixed annual tax will increase from Rs15,000 to Rs30,000.
  4. Tax calculation formula: 5% of the amount exceeding Rs.600,000/-
  5. Salaries between Rs200,000 and Rs366,000 per month: The tax rate will rise from 22.5% to 25%, with the fixed annual tax increasing from Rs.165,000/- to Rs180,000/-.
  6. Tax calculation formula: Rs.30,000 + 15% of the amount exceeding Rs.1,200,000/-
  7. Salaries between Rs266,000 and Rs342,000 per month: The tax rate will increase from 27.5% to 30%, and the fixed annual tax will go up from Rs300,000 to Rs,430,000/-.
  8. Tax calculation formula: Rs180,000 + 25% of the amount exceeding Rs.2,200,000/-.
  9. Salaries above Rs342,000 per month: The upper two tax brackets have been merged, applying a 35% tax rate to these salaries, which previously only applied to salaries over Rs1 million per month. The fixed annual tax amount for this bracket has been reduced by Rs395,000 to balance the tax burden.
  10. Tax calculation formula: Rs430,000 +30% of the
    amount exceeding Rs.3,200,000/-

These changes will directly affect the take-home pay of salaried individuals falling within these income ranges.

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