Tax Calculator Pakistan 2024-25
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| Detailed chart of Pakistan's income tax slabs for 2024-25, including calculator for accurate tax calculations. |
Big news from the Federal Budget on June 12, 2024! Pakistan’s income tax system is getting a makeover for the fiscal year 2024-25. If you’re wondering how these changes might impact you, here’s a simple breakdown.
Income Tax Slabs for 2024-25
For the fiscal year 2024-25, the income tax slabs for salaried individuals have been adjusted. Here’s a breakdown of the new tax rates:
Up to PKR 600,000 – No tax is levied.
From PKR 600,000 to PKR 1,200,000 – 5% tax on the amount exceeding PKR 600,000.
From PKR 1,200,000 to PKR 2,200,000 – A base tax of PKR 30,000 plus 15% on the amount exceeding PKR 800,000.
From PKR 2,200,000 to PKR 3,200,000 – A base tax of PKR 180,000 plus 25% on the amount exceeding PKR 1,200,000.
From PKR 3,200,000 to PKR 4,100,000 – A base tax of PKR 430,000 plus 30% on the amount exceeding PKR 2,400,000.
Above PKR 4,100,000 – A base tax of PKR 700,000 plus 35% on the amount exceeding PKR 4,100,000.
Comparing with 2023-24 SlabsFor the fiscal year 2023-24, the tax slabs were as follows:
Up to PKR 600,000 – Tax free.
From PKR 600,001 to PKR 1,200,000 – 2.5% on the amount exceeding PKR 600,000.
From PKR 1,200,001 to PKR 2,400,000 – PKR 15,000 plus 12.5% on the amount exceeding PKR 1,200,000.
From PKR 2,400,001 to PKR 3,600,000 – PKR 165,000 plus 22.5% on the amount exceeding PKR 2,400,000.
From PKR 3,600,001 to PKR 6,000,000 – PKR 435,000 plus 27.5% on the amount exceeding PKR 3,600,000.
Above PKR 6,000,000 – PKR 1,095,000 plus 35% on the amount exceeding PKR 6,000,000.
Key Changes and Implications
Up to PKR 600,000 – No tax here. You’re in the clear.
From PKR 600,000 to PKR 1,200,000 – You’ll pay 5% on anything over PKR 600,000.
Compared to last year, where the rate was 2.5% for this range, you’ll see a bump to 5% this year. It’s a move towards a system where higher incomes are taxed more, which aims to be fairer overall.
From PKR 600,000 to PKR 1,200,000 – You’ll pay 5% on anything over PKR 600,000.
Compared to last year, where the rate was 2.5% for this range, you’ll see a bump to 5% this year. It’s a move towards a system where higher incomes are taxed more, which aims to be fairer overall.
How Does This Affect You?
Middle-income earners are seeing bigger changes. The new rates are designed so that people earning more contribute a bit more to the tax pool. This fits with the global trend of making taxes more progressive, so those who earn more pay a higher percentage.
Heads Up for High Earners
If you’re earning more than PKR 4,100,000, be prepared for a higher tax hit. Last year’s 35% tax rate on this income bracket is now paired with an additional PKR 700,000 base tax. The goal is to ensure that those with higher incomes contribute more, helping to balance out income disparities.
What’s Next for You?
These new tax changes could affect how you handle your finances. If you’re earning a high income, you might want to review your budget and financial plans because you’ll be paying more tax. On the other hand, if your income is on the lower side, you might not notice much change, or you could end up with a bit of relief. It’s a good idea to check out the new tax brackets and tweak your plans to stay ahead.