How Much Tax Do You Need to Pay on Your Salaries?

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How Much Tax Do You Need to Pay on Your Salaries?

Everything you need to know about the tax on salaries after budget 2024-25

After the announcement of Pakistan’s federal budget 2024-25, salaried individuals need to pay a fixed tax. The new income tax slabs for salaried individuals revealed that they need to pay a 35% tax applied to annual salaries exceeding Rs4.1 million.

Income Tax for non-salaried class:

On the other hand, the non-salaried class need to Pay 45% tax under the new budget tax slab.

The new income tax slabs for the salaries in budget 2024-25 are as follows;

A 5% annual tax on people’s earnings is Rs.600,000 and Rs.1.2 million annually. Individuals earning up to Rs.100, 000 per month need to pay Rs.2, 500, up from Rs1,250.

The tax rate increased to 15% for those annually earning between Rs1.2 million and Rs2.2 million. Individuals earning between Rs.183,344 need to pay  Rs.15,000 tax monthly instead of Rs.11,667.

A 25% annual tax is implanted on people earning between Rs.2.2 million and Rs.3.2 million. If your monthly salary is Rs.267,667 you will pay  Rs.35,834 now instead of Rs.28,770.

People with Earnings between Rs.3.2 million and Rs.4.1 need to pay a 30% annual tax. Salaried individuals with a monthly salary of Rs.341,667 will now pay a monthly tax of Rs.53,333 instead of Rs47,408.

Annual salaries exceeding Rs4.1 million need to pay 35% tax.

The individuals earning Rs.50,000 per month will be free from tax payments.

You can follow the table below about tax on salaries after budget 2024-25.

Annual Income RangeMonthly Income RangeNew Tax Rate (%)New Monthly TaxPrevious Monthly Tax
Rs.600,000 to Rs.1.2 MillionRs.100, 0005%12502500
Rs1.2 million To  Rs2.2 millionRs. 183,34415%Rs.15,000Rs.11,667
Rs.2.2 million To Rs.3.2 millionRs.267,66725%Rs.35,834  Rs.28,770
Rs.3.2 million To  Rs.4.1 MillionRs.341,66730%Rs.53,333Rs.47,408

The new taxes on salaries will be applicable from 1st July 2024.

Author Bio:

Hi, this is Sumera Saeed: A seasoned content writer with 12+ years of experience, I craft compelling content across diverse platforms. My expertise covers e-commerce, finance, news media, and currently, the vital Pakistani blogosphere. As Managing Editor and Content Writer at Daytimes.pk, I am passionate about creating engaging content. I am always excited to discover new trends and writing techniques. Feel free to connect at [email protected] to discuss content tips, write-ups, or potential collaborations.

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