The Pakistan income tax slabs for 2025–2026 apply to salaried individuals for the financial year starting from 1 July 2025 and ending on 30 June 2026. These tax rates are issued under the Federal Budget and implemented by the Federal Board of Revenue (FBR).
Pakistan follows a progressive income tax system, meaning higher income levels are taxed at higher rates, while lower income earners benefit from reduced or zero taxation.
Pakistan Salary Tax Slabs 2025–26 (Salaried Individuals)
| Annual Taxable Income (PKR) | Income Tax Rate |
|---|---|
| Up to 600,000 | 0% (Exempt) |
| 600,001 – 1,200,000 | 1% of the amount exceeding 600,000 |
| 1,200,001 – 2,200,000 | 6,000 + 11% of the amount exceeding 1,200,000 |
| 2,200,001 – 3,200,000 | 116,000 + 23% of the amount exceeding 2,200,000 |
| 3,200,001 – 4,100,000 | 346,000 + 30% of the amount exceeding 3,200,000 |
| Above 4,100,000 | 616,000 + 35% of the amount exceeding 4,100,000 |
How Income Tax Is Calculated in Pakistan
Income tax in Pakistan is calculated using a slab-based system. Your entire salary is not taxed at a single rate. Instead, each portion of income is taxed according to the relevant tax slab.
- Lower income slabs are taxed first
- Higher tax rates apply only to income exceeding slab limits
- This ensures fair taxation for all income groups
Example of Pakistan Salary Tax Calculation
Annual Salary: PKR 1,500,000
- First 600,000 → 0% tax
- Next 600,000 → 1% = PKR 6,000
- Remaining 300,000 → 11% = PKR 33,000
Total Annual Tax: PKR 39,000
Monthly Tax: PKR 3,250
Monthly vs Annual Salary Consideration
Although income tax is usually deducted on a monthly basis by employers, tax slabs are defined annually. If you know your monthly salary, multiply it by 12 to determine your annual taxable income.
Important Notes for Salaried Individuals
- These tax slabs apply only to salaried individuals
- Freelancers and business owners follow different tax rules
- Most employers deduct income tax under the withholding system
- Filing an income tax return is mandatory if income exceeds the taxable threshold
Frequently Asked Questions
What is the minimum taxable salary in Pakistan?
The minimum taxable annual salary in Pakistan is PKR 600,000.
What is the highest income tax rate in Pakistan?
The maximum tax rate is 35%, applicable to income above PKR 4.1 million annually.
Are bonuses and allowances taxable?
Yes, bonuses and most allowances are included in taxable salary unless specifically exempted.
Final Thoughts
Understanding the income tax slabs in Pakistan for 2025–2026 helps salaried individuals plan their finances better and avoid unexpected salary deductions. Always ensure your tax calculations align with the latest FBR updates.