Finance Act 2023 · Jul 2023 – Jun 2024
Pakistan Income Tax Slabs 2023-24
The Finance Act 2023 maintained relatively moderate rates with no surcharge. The top bracket of 35% kicked in only above PKR 6M annually.
Calculate
FY 2023-24
PKR
Annual: PKR 1,800,000
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PKR 90,000
≈ PKR 7,500/month·Effective 5.00%
Take-home · annual
₨1,710,000
Take-home · monthly
₨142,500
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Salaried tax slabs · FY 2023-24
| # | Annual income (PKR) | Rate | Tax formula |
|---|---|---|---|
| 1 | Up to ₨600,000 | 0.00% | 0.00% of excess |
| 2 | Above ₨600,000 to ₨1,200,000 | 2.50% | 2.50% of excess |
| 3 | Above ₨1,200,000 to ₨2,400,000 | 12.50% | ₨15,000 + 12.50% of excess |
| 4 | Above ₨2,400,000 to ₨3,600,000 | 22.50% | ₨165,000 + 22.50% of excess |
| 5 | Above ₨3,600,000 to ₨6,000,000 | 27.50% | ₨435,000 + 27.50% of excess |
| 6 | Above ₨6,000,000 & above | 35.00% | ₨1,095,000 + 35.00% of excess |
Worked examples · FY 2023-24
PKR 50,000/month
Tax: ₨0
Take-home 50,000/mo · 0.00% effective
PKR 100,000/month
Tax: ₨15,000
Take-home 98,750/mo · 1.25% effective
PKR 200,000/month
Tax: ₨165,000
Take-home 186,250/mo · 6.88% effective
PKR 500,000/month
Tax: ₨1,095,000
Take-home 408,750/mo · 18.25% effective
PKR 1,000,000/month
Tax: ₨3,195,000
Take-home 733,750/mo · 26.63% effective
AOP / Non-salaried slabs · FY 2023-24
| # | Annual income (PKR) | Rate | Tax formula |
|---|---|---|---|
| 1 | Up to ₨600,000 | 0.00% | 0.00% of excess |
| 2 | Above ₨600,000 to ₨800,000 | 7.50% | 7.50% of excess |
| 3 | Above ₨800,000 to ₨1,200,000 | 15.00% | ₨15,000 + 15.00% of excess |
| 4 | Above ₨1,200,000 to ₨2,400,000 | 20.00% | ₨75,000 + 20.00% of excess |
| 5 | Above ₨2,400,000 to ₨3,000,000 | 25.00% | ₨315,000 + 25.00% of excess |
| 6 | Above ₨3,000,000 to ₨4,000,000 | 30.00% | ₨465,000 + 30.00% of excess |
| 7 | Above ₨4,000,000 to ₨6,000,000 | 32.50% | ₨765,000 + 32.50% of excess |
| 8 | Above ₨6,000,000 & above | 35.00% | ₨1,415,000 + 35.00% of excess |
Frequently asked questions about FY 2023-24
Everything you need to know about Pakistan's income tax for fiscal year 2023-24.
What are the income tax slabs in Pakistan for 2023-24?
For tax year 2023-24, Pakistan's salaried tax slabs under the Finance Act 2023 are: tax-free up to PKR 600,000, then progressive rates from 2.50% upward across higher income brackets, capped at 35.00% on income above PKR 6,000,000. No surcharge applies in FY 2023-24 for standard salaried filers.
When does the FY 2023-24 tax year start and end in Pakistan?
Pakistan's fiscal year 2023-24 runs from 1 July to 30 June, in line with the federal budget cycle. Finance Act 2023 governs the slabs and rates for this entire period. The annual tax return filing deadline for salaried individuals and AOPs is 30 September following the end of the fiscal year, unless the FBR extends it by notification.
Is the PKR 600,000 tax-free threshold still applicable for FY 2023-24?
Yes — for tax year 2023-24, the basic exemption threshold for salaried individuals remains PKR 600,000 of annual income. Salaried employees earning at or below this amount pay zero income tax for the year, but should still file a nil return to maintain Active Taxpayer (ATL) status.
How do I file my tax return for FY 2023-24?
Tax returns for FY 2023-24 are filed online through the FBR's IRIS 2.0 portal (iris.fbr.gov.pk). Salaried filers need their salary certificate, CNIC, and bank account details. The deadline is 30 September. Filing on time keeps you on the Active Taxpayers List, which gives you reduced withholding tax rates on banking, vehicles, and property transactions.
What's the difference between salaried and AOP tax rates for FY 2023-24?
Salaried individuals (where 75% or more of income is from salary) use the salaried slabs published in Finance Act 2023, with the lowest rates. AOPs (Association of Persons), partnerships, and non-salaried individuals use a separate slab schedule with higher marginal rates and a different threshold structure. Use the calculator on this page to compute either.