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 | 5% of amount exceeding Rs 600,000 |
| Rs 1,200,001 – Rs 2,200,000 | Rs 30,000 + 15% of amount exceeding Rs 1,200,000 |
| Rs 2,200,001 – Rs 3,200,000 | Rs 180,000 + 25% of amount exceeding Rs 2,200,000 |
| Rs 3,200,001 – Rs 4,100,000 | Rs 430,000 + 30% of amount exceeding Rs 3,200,000 |
| Above Rs 4,100,000 | Rs 700,000 + 35% of amount exceeding Rs 4,100,000 |
Non-salaried individuals / business individuals
| Taxable income | Income tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 – Rs 1,200,000 | 15% of amount exceeding Rs 600,000 |
| Rs 1,200,001 – Rs 1,600,000 | Rs 90,000 + 20% of amount exceeding Rs 1,200,000 |
| Rs 1,600,001 – Rs 3,200,000 | Rs 170,000 + 30% of amount exceeding Rs 1,600,000 |
| Rs 3,200,001 – Rs 5,600,000 | Rs 650,000 + 40% of amount exceeding Rs 3,200,000 |
| Above Rs 5,600,000 | Rs 1,610,000 + 45% of amount exceeding Rs 5,600,000 |
Surcharge (section 4AB)
Where taxable income exceeds Rs 10,000,000: 10% of income tax for salaried individuals; 10% for non-salaried individuals.
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 2024. Surcharge: section 4AB inserted by the Finance Act 2024. Effective from 1 July 2024.
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. Slab structure per FBR Budget 2024-25 salient features; 45% above Rs 5,600,000 per EY/PwC; 10% surcharge for all individuals per PwC Finance Act 2024 memorandum and KPMG.
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 2024
- Salaried individuals: five taxable slabs from 5% to 35% above the Rs 600,000 threshold. (Source: FBR Budget 2024-25 Salient Features)
- Non-salaried individuals: five taxable slabs from 15% to 45% above the Rs 600,000 threshold. (Source: FBR Budget 2024-25 Salient Features)
- Section 4AB surcharge introduced on individuals and AOPs with taxable income above Rs 10,000,000. (Source: FBR Budget 2024-25 Salient Features)
Official documents
- FBR Budget 2024-25 Salient Features View FBR Budget 2024-25 Salient Features Download PDF FBR Budget 2024-25 Salient Features
- Income Tax Ordinance 2001, amended up to 30.06.2024 View Income Tax Ordinance 2001, amended up to 30.06.2024 Download PDF Income Tax Ordinance 2001, amended up to 30.06.2024