Pakistan tax slabs 2025-26 vs 2026-27
The Finance Act 2026 cut salaried income tax for the first time in years. Here is exactly what changed bracket-by-bracket, how much you save on common salaries, and what stayed the same.
What changed for salaried taxpayers
Every salaried bracket compared between the Finance Act 2025 (2025-26) and the Finance Act 2026 (2026-27).
| Annual income band | 2025-26 rate | 2026-27 rate | What changed |
|---|---|---|---|
| PKR 0 – 2.2M | 0% / 1% / 11% | 0% / 1% / 11% | Unchanged — low and middle salaries keep the same rates. |
| PKR 2.2M – 3.2M | 23% | 20% | Rate cut by 3 percentage points. |
| PKR 3.2M – 4.1M | 30% | 25% | Rate cut by 5 percentage points. |
| PKR 4.1M – 5.6M | 35% | 29% | New intermediate bracket — was previously taxed at the 35% top rate. |
| PKR 5.6M – 7M | 35% | 32% | New intermediate bracket — was previously taxed at the 35% top rate. |
| Above PKR 7M | 35% | 35% | Top rate unchanged, but it now starts at 7M instead of 4.1M. |
| Surcharge above PKR 10M | 9% | 0% | Abolished for salaried individuals under the Finance Act 2026. |
How much you save on common salaries
Annual salaried income tax under 2025-26 versus 2026-27, calculated live from FBR slabs. Salaries up to PKR 2.2 million per year are unaffected.
| Monthly salary | Annual income | Tax 2025-26 | Tax 2026-27 | You save |
|---|---|---|---|---|
| 100,000 | 1,200,000 | 6,000 | 6,000 | — |
| 150,000 | 1,800,000 | 72,000 | 72,000 | — |
| 200,000 | 2,400,000 | 162,000 | 156,000 | 6,000 |
| 300,000 | 3,600,000 | 466,000 | 416,000 | 50,000 |
| 500,000 | 6,000,000 | 1,281,000 | 1,104,000 | 177,000 |
| 833,333 | 9,999,996 | 2,680,999 | 2,473,999 | 207,000 |
| 1,000,000 | 12,000,000 | 3,685,290 | 3,174,000 | 511,290 |
Salaried individual rates only. Figures include the 9% surcharge for 2025-26 where income exceeds PKR 10M (abolished in 2026-27). Run your exact salary →
Salaried slabs 2025-26
Finance Act 2025
| Annual income (PKR) | Rate |
|---|---|
| 0 – 600,000 | Tax free (0%) |
| 600,000 – 1,200,000 | 1% |
| 1,200,000 – 2,200,000 | 11% |
| 2,200,000 – 3,200,000 | 23% |
| 3,200,000 – 4,100,000 | 30% |
| Above 4,100,000 | 35% |
+ 9% surcharge above 10,000,000
Salaried slabs 2026-27
Finance Act 2026
| Annual income (PKR) | Rate |
|---|---|
| 0 – 600,000 | Tax free (0%) |
| 600,000 – 1,200,000 | 1% |
| 1,200,000 – 2,200,000 | 11% |
| 2,200,000 – 3,200,000 | 20% |
| 3,200,000 – 4,100,000 | 25% |
| 4,100,000 – 5,600,000 | 29% |
| 5,600,000 – 7,000,000 | 32% |
| Above 7,000,000 | 35% |
No high-income surcharge
Tax slab comparison FAQs
Did salary tax slabs change in Pakistan for 2026-27?
Yes. The Finance Act 2026 cut salaried rates for income above PKR 2.2 million (23% → 20% and 30% → 25%), added two new intermediate brackets (29% and 32%), moved the 35% top rate to apply only above PKR 7 million, and abolished the 9% surcharge that previously applied to salaried income above PKR 10 million. Income up to PKR 2.2 million is taxed at the same rates as before.
How much income tax will I save in 2026-27 versus 2025-26?
It depends on your salary. Income up to PKR 2.2 million per year sees no change. Above that, the rate cuts and the removal of the 9% surcharge produce meaningful savings — a salary of PKR 500,000/month (PKR 6 million/year) saves roughly PKR 175,000, and high earners above PKR 10 million save even more because the surcharge is gone.
Was the 9% surcharge on high salaries removed?
Yes, for salaried individuals. The 9% surcharge that the Finance Act 2025 levied on salaried taxable income above PKR 10 million was abolished under the Finance Act 2026. AOP / non-salaried taxpayers still pay a 10% surcharge on calculated tax above the PKR 10 million threshold.
Did AOP and freelancer tax rates change in 2026-27?
No. The 2026-27 relief was limited to the salaried class. AOP / non-salaried slabs carry forward unchanged (15% from PKR 600k rising to 45% above PKR 5.6M, plus a 10% surcharge above PKR 10M), and Section 154A IT/IT-enabled export rates remain 0.25% (PSEB-registered) and 1% (non-PSEB).
Which tax year applies to my salary right now?
Tax year 2026-27 covers income earned from 1 July 2026 to 30 June 2027 and is the current applicable year on FileKero. Tax year 2025-26 covered 1 July 2025 to 30 June 2026.
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