Income tax Rates on taxable income
Annual income tax on taxable income under Division I, Part I, First Schedule of the Income Tax Ordinance, 2001.
Salaried individuals
Applies where salary exceeds 75% of taxable income.
| Taxable income | Income tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 – Rs 1,200,000 | 2.5% of amount exceeding Rs 600,000 |
| Rs 1,200,001 – Rs 2,400,000 | Rs 15,000 + 12.5% of amount exceeding Rs 1,200,000 |
| Rs 2,400,001 – Rs 3,600,000 | Rs 165,000 + 20% of amount exceeding Rs 2,400,000 |
| Rs 3,600,001 – Rs 6,000,000 | Rs 405,000 + 25% of amount exceeding Rs 3,600,000 |
| Rs 6,000,001 – Rs 12,000,000 | Rs 1,005,000 + 32.5% of amount exceeding Rs 6,000,000 |
| Above Rs 12,000,000 | Rs 2,955,000 + 35% of amount exceeding Rs 12,000,000 |
Non-salaried individuals / business individuals
| Taxable income | Income tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 – Rs 800,000 | 5% of amount exceeding Rs 600,000 |
| Rs 800,001 – Rs 1,200,000 | Rs 10,000 + 12.5% of amount exceeding Rs 800,000 |
| Rs 1,200,001 – Rs 2,400,000 | Rs 60,000 + 17.5% of amount exceeding Rs 1,200,000 |
| Rs 2,400,001 – Rs 3,000,000 | Rs 270,000 + 22.5% of amount exceeding Rs 2,400,000 |
| Rs 3,000,001 – Rs 4,000,000 | Rs 405,000 + 27.5% of amount exceeding Rs 3,000,000 |
| Rs 4,000,001 – Rs 6,000,000 | Rs 680,000 + 32.5% of amount exceeding Rs 4,000,000 |
| Above Rs 6,000,000 | Rs 1,330,000 + 35% of amount exceeding Rs 6,000,000 |
Surcharge (section 4AB)
No section 4AB surcharge applied for this tax year (introduced from tax year 2025).
Legal basis: Income Tax Ordinance 2001, First Schedule, Part I, Division I — clause (1A) salaried and clause (1) non-salaried individuals, as amended by the Finance Act 2022. Effective from 1 July 2022.
Verification status: Cross-checked against secondary professional references; official Finance Act text not read directly in this build (FBR not reachable from the build environment). Professional review required. Salaried rates matched TAG & Co TY2023 salary update; non-salaried table (incl. 32.5% slab and 1,330,000 + 35% above Rs 6,000,000) matched TAG Finance Act 2022 highlights. Corrected in this release.
Withholding tax Tax deducted at source
Withholding tax is collected at source on specific payments and transactions (for example salary, contracts, banking, property and utilities) under the relevant sections of the Ordinance. These rates are not the income tax slabs above. Use FBR’s official rate card for this tax year:
- FBR — Withholding Tax Rate Cards (all tax years) View FBR — Withholding Tax Rate Cards (all tax years)
We link FBR’s official card rather than reproducing withholding rates. FBR notes that the Income Tax Ordinance prevails over the rate card in case of conflict.
Key changes — Finance Act 2022
- Super tax under section 4C introduced on high-earning persons. (Source: FBR Circular No. 15 of 2022-23 — Finance Act 2022)
Official documents
- FBR Circular No. 15 of 2022-23 — Finance Act 2022 View FBR Circular No. 15 of 2022-23 — Finance Act 2022 Download PDF FBR Circular No. 15 of 2022-23 — Finance Act 2022