Last Updated on: 5th October 2024, 11:28 pm
The FBR has revised the salary tax slabs for the financial year 2024-25, affecting the income tax rates for this year. If you’re unsure how to calculate your income tax with these changes, this article offers helpful information and tips.
Understanding the new tax rates will help you plan your finances better and ensure accurate tax payments.
New FBR income tax slabs 2024-25 Pakistan
The government of Pakistan has proposed a new income tax structure, affecting taxpayers’ liabilities. The updated rates are:
- 5% for income between Rs50,001 and Rs100,000
- 15% for income between Rs100,001 and Rs183,344
- 25% for income between Rs183,345 and Rs267,667
- 30% for income between Rs267,668 and Rs341,667
For those earning Rs150,000 monthly, the income tax now falls under the 30% slab. Their annual income, ranging between Rs1,800,000 and Rs3,600,000, is taxed at 30% for the amount exceeding Rs1,600,000. This means individuals with this salary will see higher deductions from their paychecks starting August 2024.
Here’s how to get your NTN number for taxable income.
Example for Income Tax Calculation
For a monthly salary of Rs150,000:
- Total annual income: Rs1,800,000
- Taxable amount exceeding Rs1,600,000: Rs200,000
- Tax on this amount at 30%: Rs60,000 annually, which is Rs5,000 per month
The introduction of these new tax slabs indicates the federal government’s aim to restructure the tax system to increase revenue while adapting to economic conditions. Understanding these changes is crucial for financial planning and budgeting as employees await their August salaries.
Salary Tax Calculator 2024 Pakistan ✅
The Pakistan government has released the income tax slab rates for the fiscal year 2024-25, effective from 1st July 2024. Here’s a breakdown of the new rates:
- PKR 50,000 Salary: Zero tax monthly
- PKR 100,000 Salary: Rs 2,500 tax monthly
- PKR 200,000 Salary: Rs 19,167 tax monthly
- PKR 300,000 Salary: Rs 45,833 tax monthly
- PKR 400,000 Salary: Rs 78,750 tax monthly
- PKR 500,000 Salary: Rs 113,750 tax monthly
- PKR 600,000 Salary: Rs 148,750 tax monthly
- PKR 700,000 Salary: Rs 183,750 tax monthly
- PKR 800,000 Salary: Rs 218,750 tax monthly
- PKR 900,000 Salary: Rs 253,750 tax monthly
- PKR 1,000,000 Salary: Rs 288,750 tax monthly
To calculate your income tax, determine your tax bracket using the salary income tax calculator provided by the FBR. Multiply your taxable income by the relevant tax rate, then subtract any applicable tax rebates or deductions to find your final income tax liability.
For previous FY 2023-24 income tax, read this article.
Applicability
The new income tax slab rates apply to all Pakistani residents, including salaried individuals, businessmen, and professionals. Non-residents are also subject to income tax on their Pakistani-source income. Agricultural income remains exempt from tax.
