Income Tax Slabs
Salaried Income Tax Slabs
In Pakistan, salaried individuals are taxed based on annual income slabs, with progressive tax rates applied depending on the level of income. These tax slabs are revised every fiscal year to account for inflation and policy changes. Below are the income tax rates for salaried individuals:
Salaried Income Tax Slabs 2024-2025
As per the latest income tax regulations for the year 2024-2025, the following slabs and income tax rates will be applicable for salaried persons:
- Where the taxable salary income does not exceed Rs. 600,000, the rate of income tax is 0%.
- Where the taxable salary income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000, the rate of income tax is 5% of the amount exceeding Rs. 600,000.
- Where the taxable salary income exceeds Rs. 1,200,000 but does not exceed Rs. 2,200,000, the rate of income tax is Rs. 30,000 + 15% of the amount exceeding Rs. 1,200,000.
- Where the taxable salary income exceeds Rs. 2,200,000 but does not exceed Rs. 3,200,000, the rate of income tax is Rs. 180,000 + 25% of the amount exceeding Rs. 2,200,000.
- Where the taxable salary income exceeds Rs. 3,200,000 but does not exceed Rs. 4,100,000, the rate of income tax is Rs. 430,000 + 30% of the amount exceeding Rs. 3,200,000.
- Where the taxable salary income exceeds Rs. 4,100,000, the rate of income tax is Rs. 700,000 + 35% of the amount exceeding Rs. 4,100,000.
Surcharge on Tax Where Taxable Income Exceeds Ten Million Rupees [Section 4AB]
A 10% surcharge has been introduced under section 4AB, applicable to individuals and Associations of Persons (AOPs) whose taxable income exceeds ten million rupees. This surcharge is applied to both salaried and non-salaried individuals and aims to increase contributions from high-income earners. The surcharge is calculated as 10% of the income tax payable for the relevant tax year.
Example:
For an individual with an income of Rs. 13,000,000, the tax liability is calculated as follows:
- Tax on salary income: Rs. 3,815,000
- Surcharge at 10% on the tax payable: Rs. 381,500
The total annual tax liability becomes:
- Total tax = Rs. 3,815,000 + Rs. 381,500 = Rs. 4,196,500
Salaried Income Tax Slabs 2023-2024
As per Federal Budget 2023-2024 presented by Government of Pakistan, following slabs and income tax rates will be applicable for salaried persons for the year 2023-2024:
- Where the taxable salary income does not exceed Rs. 600,000, the rate of income tax is 0%.
- Where the taxable salary income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000, the rate of income tax is 2.5% of the amount exceeding Rs. 600,000.
- Where the taxable salary income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000, the rate of income tax is Rs. 15,000 + 12.5% of the amount exceeding Rs. 1,200,000.
- Where the taxable salary income exceeds Rs. 2,400,000 but does not exceed Rs. 3,600,000, the rate of income tax is Rs. 165,000 + 22.5% of the amount exceeding Rs. 2,400,000.
- Where the taxable salary income exceeds Rs. 3,600,000 but does not exceed Rs. 6,000,000, the rate of income tax is Rs. 435,000 + 27.5% of the amount exceeding Rs. 3,600,000.
- Where the taxable salary income exceeds Rs. 6,000,000, the rate of income tax is Rs. 1,095,000 + 35% of the amount exceeding Rs. 6,000,000.
Salaried Income Tax Slabs 2022-2023
As per Federal Budget 2022-2023 presented by Government of Pakistan, following slabs and income tax rates will be applicable for salaried persons for the year 2022-2023:
- Where the taxable salary income does not exceed Rs. 600,000 the rate of income tax is 0%.
- Where the taxable salary income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 the rate of income tax is 2.5% of the amount exceeding Rs. 600,000
- Where the taxable salary income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000 the rate of income tax is Rs. 15,000+12.5% of the amount exceeding Rs. 1,200,000.
- Where the taxable salary income exceeds Rs. 2,400,000 but does not exceed Rs. 3,600,000 the rate of income tax is Rs. 165,000 + 20% of the amount exceeding Rs. 2,400,000.
- Where the taxable salary income exceeds Rs. 3,600,000 but does not exceed Rs. 6,000,000 the rate of income tax is Rs. 405,000 + 25% of the amount exceeding Rs. 3,600,000.
- Where the taxable salary income exceeds Rs. 6,000,000 but does not exceed Rs. 12,000,000 the rate of income tax is Rs. 1,005,000 + 32.5% of the amount exceeding Rs. 6,000,000.
- Where the taxable salary income exceeds Rs. 12,000,000 the rate of income tax is Rs. 2,955,000 + 35% of the amount exceeding Rs. 12,000,000.
Salaried Income Tax Slabs 2021-2022
As per Federal Budget 2021-2022 presented by the Government of Pakistan, the following slabs and income tax rates will be applicable for salaried persons for the year 2021-2022:
- Where the taxable salary income does not exceed Rs. 600,000, the rate of income tax is 0%.
- Where the taxable salary income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000, the rate of income tax is 5% of the amount exceeding Rs. 600,000.
- Where the taxable salary income exceeds Rs. 1,200,000 but does not exceed Rs. 1,800,000, the rate of income tax is Rs. 30,000 + 10% of the amount exceeding Rs. 1,200,000.
- Where the taxable salary income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000, the rate of income tax is Rs. 90,000 + 15% of the amount exceeding Rs. 1,800,000.
- Where the taxable salary income exceeds Rs. 2,500,000 but does not exceed Rs. 3,500,000, the rate of income tax is Rs. 195,000 + 17.5% of the amount exceeding Rs. 2,500,000.
- Where the taxable salary income exceeds Rs. 3,500,000 but does not exceed Rs. 5,000,000, the rate of income tax is Rs. 370,000 + 20% of the amount exceeding Rs. 3,500,000.
- Where the taxable salary income exceeds Rs. 5,000,000 but does not exceed Rs. 8,000,000, the rate of income tax is Rs. 670,000 + 22.5% of the amount exceeding Rs. 5,000,000.
- Where the taxable salary income exceeds Rs. 8,000,000 but does not exceed Rs. 12,000,000, the rate of income tax is Rs. 1,345,000 + 25% of the amount exceeding Rs. 8,000,000.
- Where the taxable salary income exceeds Rs. 12,000,000 but does not exceed Rs. 30,000,000, the rate of income tax is Rs. 2,345,000 + 27.5% of the amount exceeding Rs. 12,000,000.
- Where the taxable salary income exceeds Rs. 30,000,000 but does not exceed Rs. 50,000,000, the rate of income tax is Rs. 7,295,000 + 30% of the amount exceeding Rs. 30,000,000.
- Where the taxable salary income exceeds Rs. 50,000,000 but does not exceed Rs. 75,000,000, the rate of income tax is Rs. 13,295,000 + 32.5% of the amount exceeding Rs. 50,000,000.
- Where the taxable salary income exceeds Rs. 75,000,000, the rate of income tax is Rs. 21,420,000 + 35% of the amount exceeding Rs. 75,000,000.
Salaried Income Tax Slabs 2020-2021
As per Federal Budget 2020-2021 presented by the Government of Pakistan, the following slabs and income tax rates will be applicable for salaried persons for the year 2020-2021:
- Where the taxable salary income does not exceed Rs. 600,000, the rate of income tax is 0%.
- Where the taxable salary income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000, the rate of income tax is 5% of the amount exceeding Rs. 600,000.
- Where the taxable salary income exceeds Rs. 1,200,000 but does not exceed Rs. 1,800,000, the rate of income tax is Rs. 30,000 + 10% of the amount exceeding Rs. 1,200,000.
- Where the taxable salary income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000, the rate of income tax is Rs. 90,000 + 15% of the amount exceeding Rs. 1,800,000.
- Where the taxable salary income exceeds Rs. 2,500,000 but does not exceed Rs. 3,500,000, the rate of income tax is Rs. 195,000 + 17.5% of the amount exceeding Rs. 2,500,000.
- Where the taxable salary income exceeds Rs. 3,500,000 but does not exceed Rs. 5,000,000, the rate of income tax is Rs. 370,000 + 20% of the amount exceeding Rs. 3,500,000.
- Where the taxable salary income exceeds Rs. 5,000,000 but does not exceed Rs. 8,000,000, the rate of income tax is Rs. 670,000 + 22.5% of the amount exceeding Rs. 5,000,000.
- Where the taxable salary income exceeds Rs. 8,000,000 but does not exceed Rs. 12,000,000, the rate of income tax is Rs. 1,345,000 + 25% of the amount exceeding Rs. 8,000,000.
- Where the taxable salary income exceeds Rs. 12,000,000 but does not exceed Rs. 30,000,000, the rate of income tax is Rs. 2,345,000 + 27.5% of the amount exceeding Rs. 12,000,000.
- Where the taxable salary income exceeds Rs. 30,000,000 but does not exceed Rs. 50,000,000, the rate of income tax is Rs. 7,295,000 + 30% of the amount exceeding Rs. 30,000,000.
- Where the taxable salary income exceeds Rs. 50,000,000 but does not exceed Rs. 75,000,000, the rate of income tax is Rs. 13,295,000 + 32.5% of the amount exceeding Rs. 50,000,000.
- Where the taxable salary income exceeds Rs. 75,000,000, the rate of income tax is Rs. 21,420,000 + 35% of the amount exceeding Rs. 75,000,000.
Salaried Income Tax Slabs 2019-2020
As per Federal Budget 2019-2020 presented by the Government of Pakistan, the following slabs and income tax rates will be applicable for salaried persons for the year 2019-2020:
- Where the taxable salary income does not exceed Rs. 600,000, the rate of income tax is 0%.
- Where the taxable salary income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000, the rate of income tax is 5% of the amount exceeding Rs. 600,000.
- Where the taxable salary income exceeds Rs. 1,200,000 but does not exceed Rs. 1,800,000, the rate of income tax is Rs. 30,000 + 10% of the amount exceeding Rs. 1,200,000.
- Where the taxable salary income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000, the rate of income tax is Rs. 90,000 + 15% of the amount exceeding Rs. 1,800,000.
- Where the taxable salary income exceeds Rs. 2,500,000 but does not exceed Rs. 3,500,000, the rate of income tax is Rs. 195,000 + 17.5% of the amount exceeding Rs. 2,500,000.
- Where the taxable salary income exceeds Rs. 3,500,000 but does not exceed Rs. 5,000,000, the rate of income tax is Rs. 370,000 + 20% of the amount exceeding Rs. 3,500,000.
- Where the taxable salary income exceeds Rs. 5,000,000 but does not exceed Rs. 8,000,000, the rate of income tax is Rs. 670,000 + 22.5% of the amount exceeding Rs. 5,000,000.
- Where the taxable salary income exceeds Rs. 8,000,000 but does not exceed Rs. 12,000,000, the rate of income tax is Rs. 1,345,000 + 25% of the amount exceeding Rs. 8,000,000.
- Where the taxable salary income exceeds Rs. 12,000,000 but does not exceed Rs. 30,000,000, the rate of income tax is Rs. 2,345,000 + 27.5% of the amount exceeding Rs. 12,000,000.
- Where the taxable salary income exceeds Rs. 30,000,000 but does not exceed Rs. 50,000,000, the rate of income tax is Rs. 7,295,000 + 30% of the amount exceeding Rs. 30,000,000.
- Where the taxable salary income exceeds Rs. 50,000,000 but does not exceed Rs. 75,000,000, the rate of income tax is Rs. 13,295,000 + 32.5% of the amount exceeding Rs. 50,000,000.
- Where the taxable salary income exceeds Rs. 75,000,000, the rate of income tax is Rs. 21,420,000 + 35% of the amount exceeding Rs. 75,000,000.
Salaried Income Tax Slabs 2018-2019
As per Federal Budget 2018-2019 presented by the Government of Pakistan, the following slabs and income tax rates will be applicable for salaried persons for the year 2018-2019:
- Where the taxable salary income does not exceed Rs. 400,000, the rate of income tax is 0%.
- Where the taxable salary income exceeds Rs. 400,000 but does not exceed Rs. 800,000, the rate of income tax is Rs. 1,000.
- Where the taxable salary income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000, the rate of income tax is Rs. 2,000.
- Where the taxable salary income exceeds Rs. 1,200,000 but does not exceed Rs. 2,500,000, the rate of income tax is 5% of the amount exceeding Rs. 1,200,000 or Rs. 2,000, whichever is greater.
- Where the taxable salary income exceeds Rs. 2,500,000 but does not exceed Rs. 4,000,000, the rate of income tax is Rs. 65,000 + 15% of the amount exceeding Rs. 2,500,000.
- Where the taxable salary income exceeds Rs. 4,000,000 but does not exceed Rs. 8,000,000, the rate of income tax is Rs. 290,000 + 20% of the amount exceeding Rs. 4,000,000.
- Where the taxable salary income exceeds Rs. 8,000,000, the rate of income tax is Rs. 1,090,000 + 25% of the amount exceeding Rs. 4,800,000.
Salaried Income Tax Slabs 2017-2018
As per Federal Budget 2017-2018 presented by the Government of Pakistan, the following slabs and income tax rates will be applicable for salaried persons for the year 2017-2018:
- Where the taxable salary income does not exceed Rs. 400,000, the rate of income tax is 0%.
- Where the taxable salary income exceeds Rs. 400,000 but does not exceed Rs. 500,000, the rate of income tax is 2% of the amount exceeding Rs. 400,000.
- Where the taxable salary income exceeds Rs. 500,000 but does not exceed Rs. 750,000, the rate of income tax is Rs. 2,000 + 5% of the amount exceeding Rs. 500,000.
- Where the taxable salary income exceeds Rs. 750,000 but does not exceed Rs. 1,400,000, the rate of income tax is Rs. 14,500 + 10% of the amount exceeding Rs. 750,000.
- Where the taxable salary income exceeds Rs. 1,400,000 but does not exceed Rs. 1,500,000, the rate of income tax is Rs. 79,500 + 12.5% of the amount exceeding Rs. 1,400,000.
- Where the taxable salary income exceeds Rs. 1,500,000 but does not exceed Rs. 1,800,000, the rate of income tax is Rs. 92,000 + 15% of the amount exceeding Rs. 1,500,000.
- Where the taxable salary income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000, the rate of income tax is Rs. 137,000 + 17.5% of the amount exceeding Rs. 1,800,000.
- Where the taxable salary income exceeds Rs. 2,500,000 but does not exceed Rs. 3,000,000, the rate of income tax is Rs. 259,500 + 20% of the amount exceeding Rs. 2,500,000.
- Where the taxable salary income exceeds Rs. 3,000,000 but does not exceed Rs. 3,500,000, the rate of income tax is Rs. 359,500 + 22.5% of the amount exceeding Rs. 3,000,000.
- Where the taxable salary income exceeds Rs. 3,500,000 but does not exceed Rs. 4,000,000, the rate of income tax is Rs. 472,000 + 25% of the amount exceeding Rs. 3,500,000.
- Where the taxable salary income exceeds Rs. 4,000,000 but does not exceed Rs. 7,000,000, the rate of income tax is Rs. 597,000 + 27.5% of the amount exceeding Rs. 4,000,000.
- Where the taxable salary income exceeds Rs. 7,000,000, the rate of income tax is Rs. 1,422,000 + 30% of the amount exceeding Rs. 7,000,000.
Salaried Income Tax Slabs 2016-2017
As per Federal Budget 2016-2017 presented by the Government of Pakistan, the following slabs and income tax rates will be applicable for salaried persons for the year 2016-2017:
- Where the taxable salary income does not exceed Rs. 400,000, the rate of income tax is 0%.
- Where the taxable salary income exceeds Rs. 400,000 but does not exceed Rs. 500,000, the rate of income tax is 2% of the amount exceeding Rs. 400,000.
- Where the taxable salary income exceeds Rs. 500,000 but does not exceed Rs. 750,000, the rate of income tax is Rs. 2,000 + 5% of the amount exceeding Rs. 500,000.
- Where the taxable salary income exceeds Rs. 750,000 but does not exceed Rs. 1,400,000, the rate of income tax is Rs. 14,500 + 10% of the amount exceeding Rs. 750,000.
- Where the taxable salary income exceeds Rs. 1,400,000 but does not exceed Rs. 1,500,000, the rate of income tax is Rs. 79,500 + 12.5% of the amount exceeding Rs. 1,400,000.
- Where the taxable salary income exceeds Rs. 1,500,000 but does not exceed Rs. 1,800,000, the rate of income tax is Rs. 92,000 + 15% of the amount exceeding Rs. 1,500,000.
- Where the taxable salary income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000, the rate of income tax is Rs. 137,000 + 17.5% of the amount exceeding Rs. 1,800,000.
- Where the taxable salary income exceeds Rs. 2,500,000 but does not exceed Rs. 3,000,000, the rate of income tax is Rs. 259,500 + 20% of the amount exceeding Rs. 2,500,000.
- Where the taxable salary income exceeds Rs. 3,000,000 but does not exceed Rs. 3,500,000, the rate of income tax is Rs. 359,500 + 22.5% of the amount exceeding Rs. 3,000,000.
- Where the taxable salary income exceeds Rs. 3,500,000 but does not exceed Rs. 4,000,000, the rate of income tax is Rs. 472,000 + 25% of the amount exceeding Rs. 3,500,000.
- Where the taxable salary income exceeds Rs. 4,000,000 but does not exceed Rs. 7,000,000, the rate of income tax is Rs. 597,000 + 27.5% of the amount exceeding Rs. 4,000,000.
- Where the taxable salary income exceeds Rs. 7,000,000, the rate of income tax is Rs. 1,422,000 + 30% of the amount exceeding Rs. 7,000,000.
Salaried Income Tax Slabs 2015-2016
As per Federal Budget 2015-2016 presented by the Government of Pakistan, the following slabs and income tax rates will be applicable for salaried persons for the year 2015-2016:
- Where the taxable salary income does not exceed Rs. 400,000, the rate of income tax is 0%.
- Where the taxable salary income exceeds Rs. 400,000 but does not exceed Rs. 500,000, the rate of income tax is 2% of the amount exceeding Rs. 400,000.
- Where the taxable salary income exceeds Rs. 500,000 but does not exceed Rs. 750,000, the rate of income tax is Rs. 2,000 + 5% of the amount exceeding Rs. 500,000.
- Where the taxable salary income exceeds Rs. 750,000 but does not exceed Rs. 1,400,000, the rate of income tax is Rs. 14,500 + 10% of the amount exceeding Rs. 750,000.
- Where the taxable salary income exceeds Rs. 1,400,000 but does not exceed Rs. 1,500,000, the rate of income tax is Rs. 79,500 + 12.5% of the amount exceeding Rs. 1,400,000.
- Where the taxable salary income exceeds Rs. 1,500,000 but does not exceed Rs. 1,800,000, the rate of income tax is Rs. 92,000 + 15% of the amount exceeding Rs. 1,500,000.
- Where the taxable salary income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000, the rate of income tax is Rs. 137,000 + 17.5% of the amount exceeding Rs. 1,800,000.
- Where the taxable salary income exceeds Rs. 2,500,000 but does not exceed Rs. 3,000,000, the rate of income tax is Rs. 259,500 + 20% of the amount exceeding Rs. 2,500,000.
- Where the taxable salary income exceeds Rs. 3,000,000 but does not exceed Rs. 3,500,000, the rate of income tax is Rs. 359,500 + 22.5% of the amount exceeding Rs. 3,000,000.
- Where the taxable salary income exceeds Rs. 3,500,000 but does not exceed Rs. 4,000,000, the rate of income tax is Rs. 472,000 + 25% of the amount exceeding Rs. 3,500,000.
- Where the taxable salary income exceeds Rs. 4,000,000 but does not exceed Rs. 7,000,000, the rate of income tax is Rs. 597,000 + 27.5% of the amount exceeding Rs. 4,000,000.
- Where the taxable salary income exceeds Rs. 7,000,000, the rate of income tax is Rs. 1,422,000 + 30% of the amount exceeding Rs. 7,000,000.
Salaried Income Tax Slabs 2014-2015
As per Federal Budget 2014-2015 presented by Government of Pakistan, following slabs and income tax rates will be applicable for salaried persons for the year 2014-2015:
- Where the taxable salary income does not exceed Rs. 400,000, the rate of income tax is 0%.
- Where the taxable salary income exceeds Rs. 400,000 but does not exceed Rs. 750,000, the rate of income tax is 5% of the amount exceeding Rs. 400,000.
- Where the taxable salary income exceeds Rs. 750,000 but does not exceed Rs. 1,400,000, the rate of income tax is Rs. 17,500 + 10% of the amount exceeding Rs. 750,000.
- Where the taxable salary income exceeds Rs. 1,400,000 but does not exceed Rs. 1,500,000, the rate of income tax is Rs. 82,500 + 12.5% of the amount exceeding Rs. 1,400,000.
- Where the taxable salary income exceeds Rs. 1,500,000 but does not exceed Rs. 1,800,000, the rate of income tax is Rs. 95,000 + 15% of the amount exceeding Rs. 1,500,000.
- Where the taxable salary income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000, the rate of income tax is Rs. 140,000 + 17.5% of the amount exceeding Rs. 1,800,000.
- Where the taxable salary income exceeds Rs. 2,500,000 but does not exceed Rs. 3,000,000, the rate of income tax is Rs. 262,500 + 20% of the amount exceeding Rs. 2,500,000.
- Where the taxable salary income exceeds Rs. 3,000,000 but does not exceed Rs. 3,500,000, the rate of income tax is Rs. 362,500 + 22.5% of the amount exceeding Rs. 3,000,000.
- Where the taxable salary income exceeds Rs. 3,500,000 but does not exceed Rs. 4,000,000, the rate of income tax is Rs. 475,000 + 25% of the amount exceeding Rs. 3,500,000.
- Where the taxable salary income exceeds Rs. 4,000,000 but does not exceed Rs. 7,000,000, the rate of income tax is Rs. 600,000 + 27.5% of the amount exceeding Rs. 4,000,000.
- Where the taxable salary income exceeds Rs. 7,000,000, the rate of income tax is Rs. 1,425,000 + 30% of the amount exceeding Rs. 7,000,000.
Business (Individuals and AOPs) Income Tax Slabs
Individuals and AOPs are subject to a different set of tax slabs, primarily based on their business income. These slabs are also revised yearly based on Pakistan’s fiscal policy changes. Below are the tax rates for businesses:
Business Income Tax Slabs 2024-2025
As per the Federal Budget 2024-2025 presented by the Government of Pakistan, the following slabs and income tax rates will be applicable for businesses, AOPs, and individuals for the year 2024-2025:
- Where the taxable income does not exceed Rs. 600,000, the rate of income tax is 0%.
- Where the taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000, the rate of income tax is 15% of the amount exceeding Rs. 600,000.
- Where the taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 1,600,000, the rate of income tax is Rs. 90,000 + 20% of the amount exceeding Rs. 1,200,000.
- Where the taxable income exceeds Rs. 1,600,000 but does not exceed Rs. 3,200,000, the rate of income tax is Rs. 170,000 + 30% of the amount exceeding Rs. 1,600,000.
- Where the taxable income exceeds Rs. 3,200,000 but does not exceed Rs. 5,600,000, the rate of income tax is Rs. 650,000 + 40% of the amount exceeding Rs. 3,200,000.
- Where the taxable income exceeds Rs. 5,600,000, the rate of income tax is Rs. 1,610,000 + 45% of the amount exceeding Rs. 5,600,000.
Surcharge on Tax Where Taxable Income Exceeds Ten Million Rupees [Section 4AB]
A 10% surcharge has been introduced under section 4AB, applicable to individuals and Associations of Persons (AOPs) whose taxable income exceeds ten million rupees. This surcharge is applied to both salaried and non-salaried individuals and aims to increase contributions from high-income earners. The surcharge is calculated as 10% of the income tax payable for the relevant tax year.
Example:
For an individual with an income of Rs. 13,000,000, the tax liability is calculated as follows:
- Tax on salary income: Rs. 3,815,000
- Surcharge at 10% on the tax payable: Rs. 381,500
The total annual tax liability becomes:
- Total tax = Rs. 3,815,000 + Rs. 381,500 = Rs. 4,196,500
Business Income Tax Slabs 2023-2024
As per Federal Budget 2023-2024 presented by Government of Pakistan, following slabs and income tax rates will be applicable for businesses, AOPs, and individuals for the year 2023-2024:
- Where the taxable income does not exceed Rs. 600,000, the rate of income tax is 0%.
- Where the taxable income exceeds Rs. 600,000 but does not exceed Rs. 800,000, the rate of income tax is 7.5% of the amount exceeding Rs. 600,000.
- Where the taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000, the rate of income tax is Rs. 15,000 + 15% of the amount exceeding Rs. 800,000.
- Where the taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000, the rate of income tax is Rs. 75,000 + 20% of the amount exceeding Rs. 1,200,000.
- Where the taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000, the rate of income tax is Rs. 315,000 + 25% of the amount exceeding Rs. 2,400,000.
- Where the taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000, the rate of income tax is Rs. 465,000 + 30% of the amount exceeding Rs. 3,000,000.
- Where the taxable income exceeds Rs. 4,000,000, the rate of income tax is Rs. 765,000 + 35% of the amount exceeding Rs. 4,000,000.
Business Income Tax Slabs 2022-2023
As per Federal Budget 2022-2023 presented by Government of Pakistan, following slabs and income tax rates will be applicable for businesses, AOPs, and individuals for the year 2022-2023:
- Where the taxable income does not exceed Rs. 600,000, the rate of income tax is 0%.
- Where the taxable income exceeds Rs. 600,000 but does not exceed Rs. 800,000, the rate of income tax is 5% of the amount exceeding Rs. 600,000.
- Where the taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000, the rate of income tax is Rs. 10,000 + 12.5% of the amount exceeding Rs. 800,000.
- Where the taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000, the rate of income tax is Rs. 60,000 + 17.5% of the amount exceeding Rs. 1,200,000.
- Where the taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000, the rate of income tax is Rs. 270,000 + 22.5% of the amount exceeding Rs. 2,400,000.
- Where the taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000, the rate of income tax is Rs. 405,000 + 27.5% of the amount exceeding Rs. 3,000,000.
- Where the taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 6,000,000, the rate of income tax is Rs. 580,000 + 32.5% of the amount exceeding Rs. 4,000,000.
- Where the taxable income exceeds Rs. 6,000,000, the rate of income tax is Rs. 1,330,000 + 35% of the amount exceeding Rs. 6,000,000.
Business Income Tax Slabs 2021-2022
As per Federal Budget 2021-2022 presented by Government of Pakistan, following slabs and income tax rates will be applicable for businesses, AOPs, and individuals for the year 2021-2022:
- Where the taxable income does not exceed Rs. 400,000, the rate of income tax is 0%.
- Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 600,000, the rate of income tax is 5% of the amount exceeding Rs. 400,000.
- Where the taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000, the rate of income tax is Rs. 10,000 + 10% of the amount exceeding Rs. 600,000.
- Where the taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000, the rate of income tax is Rs. 70,000 + 15% of the amount exceeding Rs. 1,200,000.
- Where the taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000, the rate of income tax is Rs. 250,000 + 20% of the amount exceeding Rs. 2,400,000.
- Where the taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000, the rate of income tax is Rs. 370,000 + 25% of the amount exceeding Rs. 3,000,000.
- Where the taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 6,000,000, the rate of income tax is Rs. 620,000 + 30% of the amount exceeding Rs. 4,000,000.
- Where the taxable income exceeds Rs. 6,000,000, the rate of income tax is Rs. 1,220,000 + 35% of the amount exceeding Rs. 6,000,000.
Business Income Tax Slabs 2020-2021
As per Federal Budget 2020-2021 presented by Government of Pakistan, following slabs and income tax rates will be applicable for businesses, AOPs, and individuals for the year 2020-2021:
- Where the taxable income does not exceed Rs. 400,000, the rate of income tax is 0%.
- Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 600,000, the rate of income tax is 5% of the amount exceeding Rs. 400,000.
- Where the taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000, the rate of income tax is Rs. 10,000 + 10% of the amount exceeding Rs. 600,000.
- Where the taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000, the rate of income tax is Rs. 70,000 + 15% of the amount exceeding Rs. 1,200,000.
- Where the taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000, the rate of income tax is Rs. 250,000 + 20% of the amount exceeding Rs. 2,400,000.
- Where the taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000, the rate of income tax is Rs. 370,000 + 25% of the amount exceeding Rs. 3,000,000.
- Where the taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 6,000,000, the rate of income tax is Rs. 620,000 + 30% of the amount exceeding Rs. 4,000,000.
- Where the taxable income exceeds Rs. 6,000,000, the rate of income tax is Rs. 1,220,000 + 35% of the amount exceeding Rs. 6,000,000.
Business Income Tax Slabs 2019-2020
As per Federal Budget 2019-2020 presented by Government of Pakistan, following slabs and income tax rates will be applicable for businesses, AOPs, and individuals for the year 2019-2020:
- Where the taxable income does not exceed Rs. 400,000, the rate of income tax is 0%.
- Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 600,000, the rate of income tax is 5% of the amount exceeding Rs. 400,000.
- Where the taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000, the rate of income tax is Rs. 10,000 + 10% of the amount exceeding Rs. 600,000.
- Where the taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000, the rate of income tax is Rs. 70,000 + 15% of the amount exceeding Rs. 1,200,000.
- Where the taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000, the rate of income tax is Rs. 250,000 + 20% of the amount exceeding Rs. 2,400,000.
- Where the taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000, the rate of income tax is Rs. 370,000 + 25% of the amount exceeding Rs. 3,000,000.
- Where the taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 6,000,000, the rate of income tax is Rs. 620,000 + 30% of the amount exceeding Rs. 4,000,000.
- Where the taxable income exceeds Rs. 6,000,000, the rate of income tax is Rs. 1,220,000 + 35% of the amount exceeding Rs. 6,000,000.
Business Income Tax Slabs 2018-2019 for Individuals
As per Federal Budget 2018-2019 presented by Government of Pakistan, following slabs and income tax rates will be applicable for Individuals for the year 2018-2019:
- Where the taxable income does not exceed Rs. 400,000, the rate of income tax is 0%.
- Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 800,000, the rate of income tax is Rs. 1,000.
- Where the taxable income exceeds Rs. 800,000 but does not exceed Rs. 1,200,000, the rate of income tax is Rs. 2,000.
- Where the taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000, the rate of income tax is 5% of the amount exceeding Rs. 1,200,000.
- Where the taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000, the rate of income tax is Rs. 60,000 + 15% of the amount exceeding Rs. 2,400,000.
- Where the taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000, the rate of income tax is Rs. 150,000 + 20% of the amount exceeding Rs. 3,000,000.
- Where the taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 5,000,000, the rate of income tax is Rs. 350,000 + 25% of the amount exceeding Rs. 4,000,000.
- Where the taxable income exceeds Rs. 5,000,000, the rate of income tax is Rs. 600,000 + 29% of the amount exceeding Rs. 5,000,000.
Business Income Tax Slabs 2018-2019 for AOPs
As per Federal Budget 2018-2019 presented by Government of Pakistan, following slabs and income tax rates will be applicable for AOPs for the year 2018-2019:
- Where the taxable income does not exceed Rs. 400,000, the rate of income tax is 0%.
- Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 1,200,000, the rate of income tax is 5% of the amount exceeding Rs. 1,200,000.
- Where the taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 2,400,000, the rate of income tax is Rs. 40,000 + 10% of the amount exceeding Rs. 1,200,000.
- Where the taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,600,000, the rate of income tax is Rs. 160,000 + 15% of the amount exceeding Rs. 2,400,000.
- Where the taxable income exceeds Rs. 3,600,000 but does not exceed Rs. 4,800,000, the rate of income tax is Rs. 340,000 + 20% of the amount exceeding Rs. 3,600,000.
- Where the taxable income exceeds Rs. 4,800,000 but does not exceed Rs. 6,000,000, the rate of income tax is Rs. 580,000 + 25% of the amount exceeding Rs. 4,800,000.
- Where the taxable income exceeds Rs. 6,000,000, the rate of income tax is Rs. 880,000 + 30% of the amount exceeding Rs. 6,000,000.