Income Tax Rates for Individuals and Association of Persons in Pakistan for Tax Year 2022
Income Tax rates for individuals and Association of persons are defined in the First Schedule, Part I, Division I, clause (i) of the Income Tax Ordinance 2001.
The income tax rates for the Tax Year 2022 are given in the table below:-
| Sr No | Taxable Income | Tax Rate |
| 1 | Income below Rs.400,000/- | 0 |
| 2 | Income exceeding Rs.400,000/- and upto Rs.600,000/- | 5% of amount in excess of Rs.400,000/- |
| 3 | Income exceeding Rs.600,000/- and up to Rs.1,200,000/- | Rs.10,000/- plus 10% of amount exceeding Rs.600,000/- |
| 4 | Income exceeding Rs.1,200,000/- and up to Rs.2,400,000/- | Rs.70,000/- plus 15% of amount exceeding Rs.1,200,000/- |
| 5 | Income exceeding Rs.2,400,000/- and up to Rs.3,000,000/- | Rs.250,000/- plus 20% of amount exceeding Rs.2,400,000/- |
| 6 | Income exceeding Rs.3,000,000/- and up to Rs.4,000,000/- | Rs.370000/- plus 25% of amount exceeding Rs.3,000,000/- |
| 7 | Income exceeding Rs.4,000,000/- and up to Rs.6,000,000/- | Rs.620,000/- plus 30% of amount exceeding Rs.2,400,000/- |
| 8 | Income exceeding Rs.6000,000/- | Rs.1,220,000/- plus 35% of amount exceeding Rs.6000,000/- |
Income Tax Rates for Salaried Individuals in Pakistan for Tax Year 2022
The income tax rates for Salaried individuals are defined in the First Schedule, Part I, Division I, clause (ii) of Division I, and clause (ii) of the Ordinance which is given in the table below:-
| Sr No | Taxable Income | Tax Rate |
| 1 | Income below Rs.600,000/- | 0% |
| 2 | Income exceeding Rs.600,000/- and up to Rs.1,200,000/- | 5% of amount in excess of Rs.600,000/- |
| 3 | Income exceeding Rs.1,200,000/- and up to Rs.1,800,000/- | Rs.30,000/- plus 10% of amount exceeding Rs.1,200,000/- |
| 4 | Income exceeding Rs.1,800,000/- and up to Rs.2,500,000/- | Rs.90,000/- plus 15% of amount exceeding Rs.1,800,000/- |
| 5 | Income exceeding Rs.2,500,000/- and up to Rs.3,500,000/- | Rs.195,000/- plus 17.5% of amount exceeding Rs.2,500,000/- |
| 6 | Income exceeding Rs.3,500,000/- and up to Rs.5,000,000/- | Rs.370000/- plus 20% of amount exceeding Rs.3,500,000/- |
| 7 | Income exceeding Rs.5,000,000/- and up to Rs.8,000,000/- | Rs.670,000/- plus 22.5% of amount exceeding Rs.5,000,000/- |
| 8 | Income exceeding Rs.8,000,000/- and up to Rs.12,000,000/- | Rs.1,345,000/- plus 25% of amount exceeding Rs.8,000,000/- |
| 9 | Income exceeding Rs.12,000,000/- and up to Rs.30,000,000/- | Rs.2,345,000/- plus 27.5% of amount exceeding Rs.12,000,000/- |
| 10 | Income exceeding Rs.30,000,000/- and up to Rs.50,000,000/- | Rs.7,295,000/- plus 30% of amount exceeding Rs.30,000,000/- |
| 11 | Income exceeding Rs.50,000,000/- and up to Rs.75,000,000/- | Rs.13,295,000/- plus 32.5% of amount exceeding Rs.50,000,000/- |
| 12 | Income exceeding Rs.75,000,000/- | Rs.21,420,000/- plus 35% of amount exceeding Rs.75,000,000/- |
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Disclaimer
The post is purely for educational purposes. For any business or legal decision, proper legal advice should be sought.