Posted by Wondering how much tax comes out of your salary this year? The income tax slabs in Pakistan for 2025-26 brought real relief for lower- and middle-income earners under the Finance Act 2025. Here are the full salary tax rates, with a clear table, worked examples, and the surcharge details.
Which year is this? These 2025-26 slabs apply to Tax Year 2026 income earned from 1 July 2025 to 30 June 2026, which is the return you file by 30 September 2026.
Salary Tax Slabs 2025-26 (FBR Rate Table)
The following FBR tax slabs for salaried individuals are effective from 1 July 2025 to 30 June 2026:
| Annual taxable salary | Income tax rate |
| Up to Rs 600,000 | 0% — fully exempt |
| Rs 600,001 – 1,200,000 | 1% of the amount above Rs 600,000 |
| Rs 1,200,001 – 2,200,000 | Rs 6,000 + 11% of the amount above Rs 1,200,000 |
| Rs 2,200,001 – 3,200,000 | Rs 116,000 + 23% of the amount above Rs 2,200,000 |
| Rs 3,200,001 – 4,100,000 | Rs 346,000 + 30% of the amount above Rs 3,200,000 |
| Above Rs 4,100,000 | Rs 616,000 + 35% of the amount above Rs 4,100,000 |
9% surcharge: if your annual taxable income exceeds Rs 10,000,000, a 9% surcharge is added on top of your calculated income tax (reduced from 10% the previous year).
How the Slabs Work (Worked Examples)
Tax is progressive each slab’s rate applies only to the portion of income within that band. Here’s the tax on some example salaries:
| Annual salary | Approx. annual tax |
| Rs 1,000,000 | Rs 4,000 |
| Rs 1,800,000 | Rs 72,000 |
| Rs 3,000,000 | Rs 300,000 |
| Rs 5,000,000 | Rs 931,000 |
Example (Rs 1,800,000): the first Rs 600,000 is tax-free; the next Rs 600,000 is taxed at 1% (Rs 6,000); and the remaining Rs 600,000 (from 1,200,000 to 1,800,000) is taxed at 11% (Rs 66,000) — total Rs 72,000.
Want to check your own figure instantly? Use our salary tax calculator for Pakistan.
What Changed from Last Year?
The Finance Act 2025 reduced rates for most salaried brackets, giving meaningful relief to lower- and middle-income earners:
- Rs 600k–1.2M: cut from 5% to 1%
- Rs 1.2M–2.2M: cut from 15% to 11%
- Rs 2.2M–3.2M: cut from 25% to 23%
- Surcharge (income above Rs 10M): reduced from 10% to 9%
- Top rate: 35% — unchanged
Salaried vs Non-Salaried: A Big Difference
These low rates are for salaried individuals. If your main income is from business, or you’re taxed as an AOP / non-salaried individual, the rates are much higher starting around 15% above Rs 600,000 and rising to a top rate of 45%, with different thresholds. If most of your income is salary, you benefit from the salaried slabs above.
Heads Up: New Rates from 1 July 2026
The June 2026 federal budget (FY 2026-27) further reduced some salaried rates and abolished the surcharge for salaried individuals, effective 1 July 2026.
Those changes apply to income earned in the new tax year (Tax Year 2027) not to the 2025-26 return you file now. We’ll cover the new rates in a separate guide; always confirm the year that applies to your situation.
How This Affects Your Return
When you file, FBR IRIS applies these slabs automatically to compute your tax, and credits the tax your employer already deducted. If too much was withheld, you may be due a refund.
See income tax return for salaried persons and our full filing guide.
Frequently Asked Questions
Q: What is the tax-free salary limit in Pakistan for 2025-26?
Annual salary up to Rs 600,000 is fully exempt 0% tax. Tax only applies to income above this threshold.
Q: What is the tax rate on a salary between Rs 600,000 and Rs 1,200,000?
1% of the amount exceeding Rs 600,000. For example, on a Rs 1,000,000 salary, only Rs 400,000 is taxable, giving Rs 4,000 in tax.
Q: What is the highest salary tax rate in 2025-26?
35% on income above Rs 4,100,000, plus a 9% surcharge if annual taxable income exceeds Rs 10,000,000.
Q: Are these rates the same for business owners and AOPs?
No. Non-salaried individuals and AOPs face higher rates starting around 15% above Rs 600,000 and rising to a 45% top rate, with different thresholds.
Q: Did tax rates change in the 2025-26 budget?
Yes, Rates were cut for most brackets up to Rs 3.2 million for example, the Rs 600k–1.2M slab dropped from 5% to 1% and the surcharge fell from 10% to 9%.
Q: Which slabs apply to the return I file now?
The 2025-26 slabs apply to Tax Year 2026 (income from 1 July 2025 to 30 June 2026), which is the return due by 30 September 2026. Newer rates from the June 2026 budget apply to the next tax year.
Not Sure How Much You Owe? We’ll Calculate and File It
Understanding the slabs is one thing applying them correctly, claiming your refund, and filing on time is another. JZARR Filers (Karachi) calculates your exact tax, files your return, and makes sure you don’t overpay.
Beat the 30 September 2026 deadline. Book your free consultation today.