Tax
Understanding Pakistan Income Tax Slabs 2025
Table of contents
Who needs to pay income tax in Pakistan?
Every salaried Pakistani earning above PKR 600,000 per year is required to pay income tax under the Federal Board of Revenue (FBR) salaried slabs.
The 2025 salaried tax slabs
| Annual Income (PKR) | Tax Rate |
|---|---|
| Up to 600,000 | 0% |
| 600,001 to 1,200,000 | 5% on excess |
| 1,200,001 to 2,200,000 | 15% + PKR 30,000 |
| 2,200,001 to 3,200,000 | 25% + PKR 180,000 |
| 3,200,001 to 4,100,000 | 30% + PKR 430,000 |
| Above 4,100,000 | 35% + PKR 700,000 |
How it's calculated
The system is progressive, only the portion of income above each slab boundary is taxed at the higher rate.
If you earn PKR 1,800,000 per year, you pay PKR 30,000 (fixed) + 15% on (1,800,000 − 1,200,000) = PKR 120,000 in total tax.
Tips to reduce tax
- Claim investment tax credits for mutual funds and pension contributions.
- Donate to approved charities for rebates.
- File on time to remain on the Active Taxpayer List (ATL).
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