Income Tax Slab Rates 2025 Pakistan – Complete Guide for Salaried and Non-Salaried Individuals

Understanding the income tax slab rates 2025 Pakistan is crucial for both salaried and non-salaried individuals to plan finances, comply with legal requirements, and avoid penalties. The Federal Board of Revenue (FBR) has announced new tax rates for the fiscal year 2025‑26, which apply differently to salaried employees and other taxpayers. This guide provides a clear overview of the updated income tax slabs and how they affect taxpayers across Pakistan.

Income Tax Slab Rates for Salaried Individuals 2025

For salaried individuals, the income tax system is progressive, meaning higher income is taxed at higher rates. The slabs for the tax year 2025‑26 are as follows:

• 
  

  Up to PKR 600,000: 0% tax

  
  


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  PKR 600,001 to PKR 1,200,000: 1% tax on the amount exceeding PKR 600,000

  
  


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  PKR 1,200,001 to PKR 2,200,000: 11% tax on the amount exceeding PKR 1,200,000

  
  


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  PKR 2,200,001 to PKR 3,200,000: 23% tax on the amount exceeding PKR 2,200,000

  
  


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  PKR 3,200,001 to PKR 4,100,000: 30% tax on the amount exceeding PKR 3,200,000

  
  


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  Above PKR 4,100,000: 35% tax on the amount exceeding PKR 4,100,000

  
  

These rates ensure that individuals with lower income are taxed minimally, while higher earners contribute proportionally more to government revenue.

Income Tax Slab Rates for Non-Salaried Individuals and AOPs

Non-salaried individuals, including business owners, professionals, and associations of persons (AOPs), have slightly different slabs:

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  Up to PKR 600,000: 0% tax

  
  


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  PKR 600,001 to PKR 1,200,000: 15% tax on the amount exceeding PKR 600,000

  
  


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  PKR 1,200,001 to PKR 1,600,000: 20% tax on the amount exceeding PKR 1,200,000

  
  


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  PKR 1,600,001 to PKR 2,400,000: 25% tax on the amount exceeding PKR 1,600,000

  
  


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  Above PKR 2,400,000: 30% tax on the amount exceeding PKR 2,400,000

  
  

Additionally, very high-income individuals and entities may face a surcharge, ensuring equitable contribution from the top income brackets.

Key Highlights of Income Tax Slab Rates 2025

1. 
   

   Progressive Tax System: Higher income is taxed at higher rates, protecting low-income earners.

   
   


2. 
   

   Filer Benefits: Filing your tax return under these slabs allows you to maintain filer status, which offers advantages in banking, government tenders, and reduced withholding taxes.

   
   


3. 
   

   Surcharge on High Incomes: Additional surcharges apply to individuals and companies with taxable income above PKR 10 million, ensuring fairness in the system.

   
   


4. 
   

   Legal Compliance: Adhering to these slabs ensures timely filing and avoidance of fines or penalties from the FBR.

   
   

How to Use the Income Tax Slab Rates

To calculate your income tax:

1. 
   

   Determine your total taxable income for the fiscal year.

   
   


2. 
   

   Apply the relevant slab rate for each portion of your income.

   
   


3. 
   

   Deduct tax credits or withholding taxes if applicable.

   
   


4. 
   

   Pay the calculated tax or claim a refund if excess tax has already been deducted.

   
   

For salaried employees, tax is often deducted at source by the employer, while non-salaried individuals must calculate and pay their tax directly.

Conclusion

Knowing the income tax slab rates 2025 Pakistan is essential for effective tax planning and compliance. These updated slabs provide clarity for both salaried and non-salaried taxpayers, ensuring fairness and transparency in the taxation system. By understanding these rates, individuals and businesses can accurately calculate tax liability, maintain filer status, and avoid legal complications.