This article provides a direct overview of individual income tax regulations and rates in Pakistan for the year 2025, including the official brackets, structure, and special rules relevant to salaried taxpayers.
Income Tax Framework for Individuals in Pakistan (2025)
Pakistan operates a progressive individual income tax system where tax payable is determined based on total annual income in Pakistani Rupees (PKR). The progressive nature means higher income brackets are taxed at higher rates. Tax assessment is based on income, and the rate structure has several distinct brackets, as outlined below.
Individual Income Tax Brackets for 2025
The following table presents the 2025 income tax brackets applicable to individuals in Pakistan. Note that all figures are denominated in PKR (Pakistani Rupees):
| Income Range (PKR) | Rate (%) |
|---|---|
| ₨0 – ₨600,000 | 0% |
| ₨600,001 – ₨1,200,000 | 1% |
| ₨1,200,001 – ₨2,200,000 | 11% |
| ₨2,200,001 – ₨3,200,000 | 23% |
| ₨3,200,001 – ₨4,100,000 | 30% |
| ₨4,100,001 and above | 35% |
It is important to note that individuals whose taxable income does not exceed ₨600,000 per year are exempt from paying any individual income tax. The brackets step up rapidly as incomes rise, particularly once taxable income exceeds ₨2,200,000 per year.
Additional Surtaxes for High Earners
Certain salaried individuals with higher incomes are subject to an extra surtax. As of 2025, the specifics are:
- Surtax Rate: 9%
- Condition: Salaried individuals with taxable income exceeding ₨10,000,000 per annum will pay an additional 9% surtax.
This surtax is in addition to the regular progressive income tax rates detailed above, representing a significant increase in the effective tax rate for the highest earners.
Progressive Rate Structure & Assessment
The assessment of income tax in Pakistan is based solely on income, with no specific mention of any alternative calculation methods or minimum/maximum holding periods for income inclusion. The rates apply to an individual’s assessed total income within the fiscal year.
Summary Table: Individual Income Tax Overview (2025)
| Parameter | Details |
|---|---|
| Tax Type | Progressive |
| Tax Year | 2025 |
| Tax-Free Allowance | ₨600,000 per annum |
| Top Rate (Standard) | 35% |
| Additional Surtax | 9% (for salaried income > ₨10,000,000) |
| Currency | Pakistani Rupee (PKR, ₨) |
Pro Tips: Practical Insights on Pakistani Income Tax
- Be mindful of the steep increase in tax rates as your taxable income crosses major thresholds, especially above ₨2,200,000 and ₨4,100,000 where higher rates quickly apply.
- If you’re a salaried individual whose taxable income exceeds ₨10,000,000 per year, always account for the 9% additional surtax in your financial and payroll planning.
- Monitor for official updates from the Federal Board of Revenue, as tax brackets and rates are reviewed periodically and changes may impact future filings.
- Use the tax-free threshold of ₨600,000 to optimize deductions and allowances, ensuring your declared taxable income accurately reflects any eligible exemptions.
Official Information and Resources
For authoritative guidance on individual income taxes, current rates, and policy updates, visit the Federal Board of Revenue’s official main page: https://www.fbr.gov.pk
In summary, Pakistan’s income tax structure for individuals in 2025 is defined by progressive rates, a tax-free allowance up to ₨600,000, substantial higher rates for upper brackets, and a supplemental surtax for top-earning salaried individuals. Careful annual planning is essential for those whose income may approach or exceed major bracket thresholds. Stay informed via the Federal Board of Revenue for any ongoing legislative or administrative changes that could impact your obligations in future tax years.