Income Tax Slab 2025-2026 Pakistan

The goveThere are notable changes in the salary tax slabs for the fiscal year 2025-26 in Pakistan.

rnment has reduced tax rates across various income brackets for salaried individuals to provide relief, especially for lower and middle-income earners.

The table below lists the new income tax slab 2025-2026 in Pakistan:

Income Tax Slab 2025-2026 for Salaried Individuals

If you earn Rs. 600,000 or less in a year, you don’t have to pay any income tax. This amount is completely tax-free for salaried individuals.
If your income is between Rs. 600,001 and Rs. 1,200,000, you’ll pay 1% tax only on the amount above Rs. 600,000. For example, if you earn Rs. 1,000,000 a year, your taxable income is Rs. 400,000 (that’s the part above Rs. 600,000), and 1% of that is Rs. 4,000 in tax.
If your income is between Rs. 1,200,001 and Rs. 2,200,000, the tax rate is 11%, but only on the amount above Rs. 1,200,000. However, a fixed tax from the earlier slab (1% on Rs. 600,000, which is Rs. 6,000) is also added. For example, if you earn Rs. 1,500,000, you’ll pay Rs. 6,000 from the previous slab and then 11% on Rs. 300,000 (which is Rs. 33,000), making the total tax Rs. 39,000.
If you earn between Rs. 2,200,001 and Rs. 3,200,000, the tax rate is 23% on the amount above Rs. 2,200,000, plus a fixed tax amount from the earlier slabs. For example, if your income is Rs. 2,500,000, the amount above Rs. 2,200,000 is Rs. 300,000. 23% of this is Rs. 69,000. Add the fixed tax from previous slabs (let’s say around Rs. 150,000), so the total tax comes to around Rs. 219,000.
If you earn between Rs. 3,200,001 and Rs. 4,100,000, you pay 30% on the amount above Rs. 3,200,000, along with fixed tax from earlier slabs. For example, if your income is Rs. 3,500,000, then Rs. 300,000 is taxed at 30%, which is Rs. 90,000, and the earlier tax might be about Rs. 300,000, making the total tax Rs. 390,000.
If your income is above Rs. 4,100,000, you pay 35% on the amount above that limit, in addition to all the fixed taxes from earlier slabs. So, for a salary of Rs. 5,000,000, the extra amount (Rs. 900,000) is taxed at 35%, which is Rs. 315,000, plus around Rs. 500,000 in earlier taxes, making your total tax about Rs. 815,000.

Summary of Changes in Income Tax Slab 2025-2026 for Salaried Individuals

Taxable Income (PKR)	Previous Tax Rate (2024-25)	New Tax Rate (2025-26)	Description
Up to 600,000	0%	0%	No tax
600,001 to 1,200,000	Rs30,000 + 15% of the amount exceeding 1,200,000	5% of the amount exceeding 600,000	Tax liability reduced from Rs30,000 to Rs6,000 at Rs1.2 million income; biggest relief here
1,200,001 to 2,200,000	Rs6,000 + 11% of the amount exceeding 1,200,000	Rs116,000 + 23% of the amount exceeding 2,200,000	Tax rate reduced by 4%, significant relief
2,200,001 to 3,200,000	Rs430,000 + 30% of the amount exceeding 3,200,000	Rs180,000 + 25% of the amount exceeding 2,200,000	Tax rate lowered by 2%, relief for higher-earning salaried individuals
3,200,001 to 4,100,000	Rs700,000 + 35% of the amount exceeding 4,100,000	Unchanged at 30%	No change
Above 4,100,000	Rs700,000 + 35% of amount exceeding 4,100,000	Unchanged at 35%	No change

Impact on Taxpayers

Salaried individuals will see monthly tax savings ranging from approximately Rs 2,000 to Rs 16,888, depending on income level.
The revised tax structure aims to ease financial pressure amid inflation and provide relief primarily to the lower and middle-income salaried class.
Despite relief measures, some representatives of the salaried class remain dissatisfied, citing minimal overall relief and calling for broader tax reforms.

FBR Income Tax Slab 2024-2025 for a Salaried person

Here’s a breakdown of the new tax slab for a salaried person:

Income Range	Tax Rate	Fixed Tax
Up to Rs 600,000	0%	Nil
Rs 600,000 – Rs 1,200,000	5%	Nil
Rs 1,200,000 – Rs 2,200,000	15%	Rs 30,000
Rs 2,200,000 – Rs 3,200,000	25%	Rs 180,000
Rs 3,200,000 – Rs 4,100,000	30%	Rs 430,000
Over Rs 4,100,000	35%	Rs 700,000

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Key Points of Salary Income Tax Slab 2024-2025

The Federal Board of Revenue (FBR) has shown a new tax card for the fiscal year 2024-25, giving tax relief for people with jobs, mainly low-income ones.
In the new tax rules, a yearly income of Rs 600,000 will not have tax. For earnings over this limit, the tax rates change like this:
Income from Rs 600,000 to Rs 1.2 million: 5% tax
Income from Rs 1.2 million to Rs 2.2 million: Rs 30,000 fixed tax plus 15% on any amount over Rs 1.2 million
Income from Rs 2.2 million to Rs 3.2 million: Rs 180,000 fixed tax plus 25% on any amount over Rs 2.2 million
Income from Rs 3.2 million to Rs 4.1 million: Rs 430,000 fixed tax plus 30% on any amount over Rs 3.2 million
Any income above Rs 4.1 million: Rs 700,000 fixed tax plus 35% on money over Rs 4.1 million

You should consult with a tax professional for specific advice on your income tax situation.

Income Tax Rates in Pakistan (2021–25) | A Comparison

Pakistan’s government has changed the salaried person tax slab rates over the years to address economic challenges and increase revenue. Here’s a simple breakdown of how tax rates changed from 2021 to 2025:

Yearly Tax Changes

2024-25 vs. 2023-24: The government increased taxes for middle- and high-income earners by 5-10% to collect more revenue and reduce the fiscal deficit.
2023-24 vs. 2022-23: Authorities raised taxes on higher-income groups to maintain a fair and progressive tax system.
2022-23 vs. 2021-22: Officials adjusted tax rates to manage inflation, economic difficulties, and revenue targets.

The tax slabs from previous years clearly show these changes.

Income Tax Calculator for FY 2025-26

Use this Pakistan tax calculator to calculate tax on your income in 2024-25.

Income Tax Slab 2025-2026: FAQs

The basic salary in Pakistan is the minimum wage and the total pay for federal government civil workers and defense-paid civilians. This was raised from Rs32,000 to Rs37,000 monthly, starting on July 1, 2024.

The Pakistan government has different tax-saving options like National Savings Schemes (NSS), Mutual Funds, and Pension Funds that offer tax advantages. To lower your income tax on salary, putting money into these options can help you, which means you pay less tax.

To figure out the basic salary from the Gross salary, you need to subtract all allowances, benefits, bonuses, and so on. The formula for this calculation is Basic Salary = Gross Salary – (Total allowances + benefits + bonuses, etc.).

Medical allowance is usually taxable in Pakistan. However, tax laws permit a 10% exemption on your basic salary for medical costs. This lets you lower your taxable income by that amount.

Wrapping Up

In conclusion, the income tax slab 2025-2026 has been revised downward for most slabs up to Rs3.2 million, providing meaningful tax relief to salaried taxpayers, while the higher slabs remain unchanged except for a slight surcharge reduction

This helps clarify how these changes affect your finances. We suggest you consult with WaysTax and get expert advice on tax planning and optimization.

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