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 + 22.5% of amount exceeding Rs 2,400,000 |
| Rs 3,600,001 – Rs 6,000,000 | Rs 435,000 + 27.5% of amount exceeding Rs 3,600,000 |
| Above Rs 6,000,000 | Rs 1,095,000 + 35% of amount exceeding Rs 6,000,000 |
Non-salaried individuals / business individuals
| Taxable income | Income tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 – Rs 800,000 | 7.5% of amount exceeding Rs 600,000 |
| Rs 800,001 – Rs 1,200,000 | Rs 15,000 + 15% of amount exceeding Rs 800,000 |
| Rs 1,200,001 – Rs 2,400,000 | Rs 75,000 + 20% of amount exceeding Rs 1,200,000 |
| Rs 2,400,001 – Rs 3,000,000 | Rs 315,000 + 25% of amount exceeding Rs 2,400,000 |
| Rs 3,000,001 – Rs 4,000,000 | Rs 465,000 + 30% of amount exceeding Rs 3,000,000 |
| Above Rs 4,000,000 | Rs 765,000 + 35% of amount exceeding Rs 4,000,000 |
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 2023. Effective from 1 July 2023.
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 top slab (1,095,000 + 35% above Rs 6,000,000) matched TAG TY2024 card; non-salaried +2.5% increase and 765,000 + 35% above Rs 4,000,000 matched PwC Finance Act 2023 memorandum. 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 Card, updated per Finance Act 2023 (Tax Year 2024) View FBR Withholding Tax Rate Card, updated per Finance Act 2023 (Tax Year 2024) Download PDF FBR Withholding Tax Rate Card, updated per Finance Act 2023 (Tax Year 2024)
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 2023
- Non-salaried individual rates increased by 2.5 percentage points in each slab; the 35% rate now applies above Rs 4,000,000. (Source: Finance Act 2023 (FBR))
- Salaried rates increased for slabs above Rs 2,400,000; the 35% rate now applies above Rs 6,000,000. (Source: Finance Act 2023 (FBR))
Official documents
- Finance Act 2023 (FBR) View Finance Act 2023 (FBR) Download PDF Finance Act 2023 (FBR)