FBR Tax Slabs 2024/25: Complete Guide for Salaried Individuals and Businesses

The Federal Board of Revenue (FBR) determines Pakistan's income tax slabs each year through the Finance Act. For Tax Year 2024/25, FBR tax slabs have been revised to adjust the tax burden across income brackets. Understanding these slabs is critical whether you are a salaried individual, business owner, sole proprietor, or freelancer. The right slab determines your effective tax rate and helps you plan deductions that can lower your tax liability.

This guide explains the complete FBR tax slabs for 2024/25, highlights differences between salaried and business slabs, and shows how to use a Pakistan income tax calculator for precise estimates. You can also verify the latest slabs directly on fbr.gov.pk.

FBR Tax Slabs for Salaried Individuals (FY 2024/25)

Salaried individuals in Pakistan are taxed under a progressive system with five main bands. Your income is taxed in increments, meaning higher rates apply only to the portion above each threshold. The tax-free limit for salaried individuals has been maintained at PKR 600,000 for Tax Year 2024/25.

Salaried Individual Tax Bands

• Up to PKR 600,000: 0% — fully exempt
• PKR 600,001 to PKR 1,200,000: 5% on excess over PKR 600,000
• PKR 1,200,001 to PKR 2,200,000: PKR 30,000 + 15% on excess over PKR 1,200,000
• PKR 2,200,001 to PKR 3,200,000: PKR 180,000 + 25% on excess over PKR 2,200,000
• PKR 3,200,001 to PKR 4,100,000: PKR 430,000 + 30% on excess over PKR 3,200,000
• Above PKR 4,100,000: PKR 700,000 + 35% on excess over PKR 4,100,000

For a quick calculation, use our Pakistan income tax calculator to see which slab you fall into and how much tax you owe annually and monthly.

Business and AOP Tax Slabs (FY 2024/25)

Sole proprietors, associations of persons (AOPs), and business individuals whose primary income is not salary face higher tax rates than salaried individuals. The business income tax slabs for FY 2024/25 start at 15% above the exemption threshold and rise to 45% for high earners.

Business Individual and AOP Tax Bands

• Up to PKR 600,000: 0% — fully exempt
• PKR 600,001 to PKR 1,200,000: 15% on excess over PKR 600,000
• PKR 1,200,001 to PKR 1,600,000: PKR 90,000 + 20% on excess over PKR 1,200,000
• PKR 1,600,001 to PKR 3,200,000: PKR 170,000 + 30% on excess over PKR 1,600,000
• PKR 3,200,001 to PKR 5,600,000: PKR 650,000 + 40% on excess over PKR 3,200,000
• Above PKR 5,600,000: PKR 1,610,000 + 45% on excess over PKR 5,600,000

The gap between salaried and business slabs is significant. A salaried person earning PKR 1.2 million pays roughly PKR 6,000 in tax, while a business individual at the same income level pays PKR 90,000. Use our business income tax calculator Pakistan to estimate your liability if you are self-employed.

Corporate Tax Rate

Companies and corporations in Pakistan are taxed at a separate corporate tax rate. For Tax Year 2024/25, the standard corporate tax rate is 29% for most companies. Small companies meeting certain criteria may qualify for different rates. Corporate tax is computed on net profits after allowable business deductions, and advance corporate tax must be paid quarterly if the liability exceeds PKR 100,000 in installments.

Tax Year and Filing Deadlines

Pakistan's tax year runs from 1 July to 30 June. Tax Year 2024/25 covers income earned from July 1, 2024, to June 30, 2025. Salaried individuals must file their returns by September 30, 2025. Businesses and AOPs face different deadlines, typically with extensions to December 31 or later, depending on the FBR notification. Always confirm the latest deadlines on fbr.gov.pk.

How to Use FBR Tax Slabs with Our Calculator

Our Pakistan tax tools apply the latest FBR tax slabs automatically. To use the calculator:

• Select your income type (salaried, business, or freelancer).
• Enter your annual or monthly gross income.
• Add applicable deductions such as retirement contributions and charitable donations.
• The tool calculates your tax using the correct progressive slab for your category.
• Review the breakdown showing tax payable, effective rate, and take-home pay.

The calculator updates automatically when the FBR publishes new slabs, so you always get the most accurate estimate for the current tax year.

Conclusion

Knowing your FBR tax slab is the first step toward accurate tax planning in Pakistan. Salaried individuals enjoy a favorable band structure with a PKR 600,000 exemption, while businesses and sole proprietors face higher progressive rates. Use our Pakistan income tax calculator to estimate your tax for FY 2024/25, and explore our full suite of Pakistan tax calculators for comprehensive planning.

Frequently Asked Questions

What are the FBR tax slabs for salaried individuals in 2024/25?

FBR tax slabs for salaried individuals in 2024/25 range from 0% up to PKR 600,000, then 5%, 15%, 25%, 30%, and 35% across higher bands. The complete slab table is available on fbr.gov.pk and can be calculated instantly using our Pakistan income tax calculator.

What is the tax-free limit for businesses in Pakistan?

The tax-free limit for business individuals, AOPs, and sole proprietors is PKR 600,000 for Tax Year 2024/25. Income above this threshold is taxed starting at 15%.

What is the corporate tax rate in Pakistan for 2024/25?

The standard corporate tax rate for most companies in Pakistan is 29% for Tax Year 2024/25. Small companies meeting specific criteria may qualify for reduced rates.

How do tax slabs differ for salaried individuals versus businesses?

Salaried individuals enjoy lower tax slabs starting at 5% above the exemption threshold, while business individuals and AOPs start at 15% above PKR 600,000. At higher income levels, business slabs reach 45%, compared to 35% for salaried individuals.

When is the tax year in Pakistan?

Pakistan's tax year runs from July 1 to June 30 of the following year. Tax Year 2024/25 covers income from July 1, 2024, to June 30, 2025. Returns are generally due by September 30, 2025.

Where can I verify the latest FBR tax slabs?

The latest FBR tax slabs are published on the FBR official website and can be accessed through the IRIS portal.

How can I lower my tax liability in Pakistan?

You can lower your tax liability by claiming allowable deductions such as retirement contributions, charitable donations, Zakat, investment rebates, and business expenses. Maintaining accurate records and filing on time helps maximize your savings.