Income Tax Slabs/Rates Comparison 2013-2025

sometimes a person can be confused to summarize all the income tax slabs/rates from 2013 to 2025. But don’t worry here we will study Pakistan income tax slabs for salaried individual from 2013 to 2025. Here in this post all the key trends and changes are highlighted.

Key Trends for the Income Tax Slabs/Rates Comparison

Following are the key trends which has been made in the income tax slabs by the government of Pakistan over the years.

1. Tax-Free Threshold Increase

2013 to 2014: the Individuals earning up to Rs. 400,000 annually have a complete tax exemption. means that these individual will not pay any tax (0% tax rate)
2019–2025: the exemption limit increased to 600,000
Trend: over the years the exemption limit was increased, which reduced the tax burden on low income individuals. Exemption limit is a limit government has set for individuals below which the individual will not pay any tax.

2. Slabs Simplification

The number of income tax slabs has been minimized and clarity has been enhanced but the tax rates are increased.

Before 2018: From 2013 to 2017 there was a complex structure having 10 to 12 slabs.
After 2018: After 2018 there is only 5 to 7 slabs and clarity has been increased.

3. Tax Rates For Middle Income Earners

The tax have been changed.

From 2013 to 2018

For middle income earners those who earn Rs. 400,000 – 750,000, the tax rate was 5%. Means that the taxpayer will give 5% of tax on amount exceeding 400,000.

Those who earn Rs. 750,000 – 1,400,000, the tax rate was 10% means that a taxpayer will pay 10% on the amount exceeding 750,000.

Those who earn Rs. 1,400,000 – 2,500,000, the tax rate was 12.5% to 17.5% tax

From 2018 to 2023

For middle income earners those who earn Rs. 600,000 – 1,200,000, the tax rate was 5%

Those who earn Rs. 1,200,000 – 2,200,000, the tax rate was 15%

Those who earn Rs. 2,200,000 – 3,200,000, the tax rate was 25% tax

From 2024 to 2025

For middle income earners those who earn Rs. 600,000 – 1,200,000, the tax rate was 5%

Those who earn Rs. 1,200,000 – 2,200,000, the tax rate was 15%

Those who earn Rs. 2,200,000 – 3,200,000, the tax rate was 25

Trends: There is gradual increase in tax rates for middle income earners.

3. Tax Rates For High Income Earners

Tax rates for high income earners has been increased.

From 2014 to 2020

For High income earners those who earn Rs. 3,500,000+ will pay tax at 25%-35% rate.

Those who earn Rs. 7,000,000+ taxed at 30% rate.

Those who earn Rs. 12,000,000+ (introduced in 2022) will pay tax at 32.5%-35% rate.

From 2023 to 2025

For High income earners those who earn Rs. 4,100,000+ will pay tax at 35% rate.

Those who earn 6,000,000+ will pay tax at 35% rate.

Trends: Higher tax rates introduced for upper-income brackets.

Summary of Trends (2013-2025)

The Tax-free income limit is increased from Rs. 400,000 to Rs. 600,000.
For middle income earners the tax rates are increased from 5%-12.5% upto 5%-25%.
The peaking value for income tax rates are 35% for Rs. 4,100,000+ money earners.
As we can see the tax slabs have been simplified from 10-12 slabs to 7 slabs over the years.
Tax rates have been raised

Click here to study all the income tax slabs from 2013 to 2024.

Visual Summary (Comparison Between tax slabs from 2013-2025)

Year	Tax-Free Threshold	Slabs	Key Changes
2013–2017	Rs. 400k	10–12	Complex, low thresholds
2018-2019	Rs. 400k→600k	6–7	Fixed-amount taxes introduced
2020-2022	Rs. 600k	9-11	Ultra-high-income brackets added
2023-2024	Rs. 600k	6	Mid-tier rate cuts
2024-2025	Rs. 600k	6	Mid-tier rate hikes