Salary tax calculator for the Pakistani year 2024-25 is available here. Here, we will cover all you need to know about tax on salary income, tax credits, tax reductions, and deductible allowances. For the tax year 2025, revised tax rates on salary have been provided. They will apply from 1st Jan 2025.
Note: If you want to become a tax filer or if you're going to get professional accounting, tax, or corporate services in Pakistan, we can help! Call: 0092-3334875413.
Salary Tax Calculator For Financial Year 2024-2025
Pakistani income taxes are based on individuals’ and businesses’ taxable incomes. The total revenue earned during a tax year, minus any deductions and exemptions allowed under tax law, determines the taxable income.
- Taxable salary income up to Rs. 600,000 is exempt from income tax
- Tax applies to amounts over Rs. 600,000 but not over Rs. 1,200,000
- You will be subject to income tax if your taxable salary income exceeds 1,200,000 but does not exceed 2,400,000
- A tax is due on taxable salary income over Rs. 2,400,000, but not over Rs. 3,600,000
- Tax rates are Rs. 435,000 plus 27.5% of excess salary income beyond Rs. 3,600,000 but not Rs. 6,000,000
- When salary income exceeds Rs. 6,000,000, income tax rates will be Rs. 1,095,000 + 35%
Download Income Tax Calculator 2024-25 In Pakistan
Income Tax Calculator Pakistan 2023-24 is an accurate and informative tax calculator tool specific to Pakistan. The calculator is clearly explained, making it easy for users to find how it can help them. “Income Tax Calculator Pakistan 2023-24” attracts individuals and businesses in Pakistan looking for accurate ways how to calculate their income tax obligations.
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Slabs Of Salary Tax Based On Budget 2024-25
- The salary income of the individual is below PKR 600,000 on an annual basis.
- You make over PKR 600,000 in salary but less than PKR 1.2 million in yearly compensation.
- The salary income exceeds PKR 1.2 Million. However, it does not exceed PKR 2.4 Million.
- Over PKR 2.4 Million in annual salary but under PKR 3.6 Million in annual salary
- An individual’s salary income exceeds PKR six million a year.
Taxable Income Calculation – How To Calculate It?
The Income Tax Ordinance 2001 explains that income can come from the following sources:
- Salaries are the primary source of income
- Rent from property income
- Profits from business
- Alternative sources of income
- Expenditures derived from foreign sources
- The income from agriculture
- Gains on capital investments
Salary income can be divided into the following categories since we are discussing it today:
- An income derived from salary
- The payment of wages or other remuneration (including arrears of salary)
- The allowances (including those for flying or subsea work)
- Compensation for Expenditures
- Amounts paid out by government employees in terms of perks (including transportation monetization)
- Payment, wages, or other remuneration (including employment termination benefits) instead of or in addition to paying wages or other remuneration
- Salaries minus bonuses
- In addition to the salary, any other allowances
How To Calculate Taxable Income Step-by-step Guide?
For different sources of income, the following factors need to be considered when calculating taxable income:
- Income from all sources should be considered, including salary, bonuses, allowances, business income, property rent, capital gains, foreign income, and agriculture income.
- Make each source of income into a separate block of payment, final tax, minimum tax, and regular tax regime.
- Now, consider the deductions and exemptions taxpayers can claim, such as medical expenses, charitable contributions, etc.
- Tax deductions (such as payment of taxes, accounting depreciation, tax depreciation, lease rentals, etc) must be adjusted to reach taxable income.
- Taking into account tax credits, deductible allowances, and tax reductions (already given)
- Income tax (advance and final) already paid and deducted can be adjusted
- If income tax refunds are more significant than the tax liability due to advance tax and final tax deductions or payments, the remaining amount is called a refund. An additional amount must be paid with the tax return if the tax liability exceeds tax deductions and expenses.
- Tax liabilities should be paid after preparing the tax challan and then the tax return submitted.
What Is Income Tax Deduction On Salary In 2025?
- Income up to Rs600,000 will be tax-free
- Over Rs600,000 but not over Rs1,200,000, Tax rate 2.5 percent on the amount exceeding Rs600,000
How Do I Calculate Pakistan’s Income Tax?
Using our tax calculator above, you can figure out your Pakistani taxes on your income. With just your monthly salary, you can calculate your tax calculations for the current tax slabs for 2024-2025 at a percentage.
Is It Possible To Save Pakistani Taxes On Salaries?
Retirement funds should be invested. Pension funds, such as the Voluntary Pension System (VPS) in Pakistan, not only help you secure your financial future but are also taxable.
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