June 4, 2026
Pakistan Income Tax Slabs: 2024-25 vs 2025-26 Compared
Finance Act 2025 cut salaried income tax rates significantly — the first taxable bracket dropped from 5% to 1%. We compare every slab side-by-side and show what it means for take-home pay at different income levels.
The relief most salaried Pakistanis didn't notice
Finance Act 2025 — effective from 1 July 2025 — quietly cut the marginal tax rates in the lower and middle salary brackets. The headline numbers don't look dramatic, but the absolute reduction in annual tax is meaningful for most office workers.
The change reflects a political reality: salaried individuals are the easiest tax base in Pakistan because tax is deducted at source. After years of higher rates, the FY 2025-26 budget rolled some of that back.
The two slab tables, side-by-side
All amounts are annual taxable income in PKR.
| Annual Taxable Income | FY 2024-25 | FY 2025-26 |
|---|---|---|
| 0 – 600,000 | 0% | 0% |
| 600,001 – 1,200,000 | 5% on excess | 1% on excess |
| 1,200,001 – 2,200,000 | Rs 30,000 + 15% | Rs 6,000 + 11% |
| 2,200,001 – 3,200,000 | Rs 180,000 + 25% | Rs 116,000 + 23% |
| 3,200,001 – 4,100,000 | Rs 430,000 + 30% | Rs 346,000 + 30% |
| Above 4,100,000 | Rs 700,000 + 35% | Rs 616,000 + 35% |
A 9% surcharge also applies on tax computed when annual taxable income exceeds PKR 10,000,000 — this part is new under Finance Act 2025.
What it works out to in rupees
Take three example salaries (all monthly, fully taxable):
| Monthly gross | FY 2024-25 monthly tax | FY 2025-26 monthly tax | Annual saving |
|---|---|---|---|
| Rs 100,000 | Rs 4,500 | Rs 1,000 | Rs 42,000 |
| Rs 200,000 | Rs 17,500 | Rs 12,667 | Rs 58,000 |
| Rs 300,000 | Rs 36,833 | Rs 29,833 | Rs 84,000 |
These aren't trivial — they translate roughly to 1–3 weeks of additional take-home pay annually for typical middle-income earners.
Calculate your take-home
See your monthly take-home pay under the current FY 2025-26 slabs, including EOBI and any surcharge.
What didn't change
- The exemption threshold stays at Rs 600,000 per year — the first Rs 50,000 a month is tax-free
- EOBI still deducted at Rs 370/month for most salaried employees
- Definition of "salaried" — you qualify if salary income is more than 75% of your total taxable income; this matters because salaried persons get preferential rates over business-income earners
A note on accuracy
The official source is the Finance Act 2025 as gazetted by the National Assembly, and FBR's notified slab tables. Always cross-reference with FBR's own calculator before making big decisions — bonuses, gratuity, and provident fund treatment can shift the calculation.