Finance Act 2025 · Jul 2025 – Jun 2026
Pakistan Income Tax Slabs 2025-26
The Finance Act 2025 introduced significant relief for salaried individuals, particularly those in the 600k–1.2M bracket where the rate dropped from 5% to 1%.
Calculate
FY 2025-26
PKR
Annual: PKR 1,800,000
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PKR 72,000
≈ PKR 6,000/month·Effective 4.00%
Take-home · annual
₨1,728,000
Take-home · monthly
₨144,000
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Salaried tax slabs · FY 2025-26
| # | Annual income (PKR) | Rate | Tax formula |
|---|---|---|---|
| 1 | Up to ₨600,000 | 0.00% | 0.00% of excess |
| 2 | Above ₨600,000 to ₨1,200,000 | 1.00% | 1.00% of excess |
| 3 | Above ₨1,200,000 to ₨2,200,000 | 11.00% | ₨6,000 + 11.00% of excess |
| 4 | Above ₨2,200,000 to ₨3,200,000 | 23.00% | ₨116,000 + 23.00% of excess |
| 5 | Above ₨3,200,000 to ₨4,100,000 | 30.00% | ₨346,000 + 30.00% of excess |
| 6 | Above ₨4,100,000 & above | 35.00% | ₨616,000 + 35.00% of excess |
Surcharge: An additional 9% surcharge on calculated tax applies if total income exceeds PKR 10,000,000.
Worked examples · FY 2025-26
PKR 50,000/month
Tax: ₨0
Take-home 50,000/mo · 0.00% effective
PKR 100,000/month
Tax: ₨6,000
Take-home 99,500/mo · 0.50% effective
PKR 200,000/month
Tax: ₨162,000
Take-home 186,500/mo · 6.75% effective
PKR 500,000/month
Tax: ₨1,281,000
Take-home 393,250/mo · 21.35% effective
PKR 1,000,000/month
Tax: ₨3,685,290
Take-home 692,893/mo · 30.71% effective
AOP / Non-salaried slabs · FY 2025-26
| # | Annual income (PKR) | Rate | Tax formula |
|---|---|---|---|
| 1 | Up to ₨600,000 | 0.00% | 0.00% of excess |
| 2 | Above ₨600,000 to ₨1,200,000 | 15.00% | 15.00% of excess |
| 3 | Above ₨1,200,000 to ₨1,600,000 | 20.00% | ₨90,000 + 20.00% of excess |
| 4 | Above ₨1,600,000 to ₨3,200,000 | 30.00% | ₨170,000 + 30.00% of excess |
| 5 | Above ₨3,200,000 to ₨5,600,000 | 40.00% | ₨650,000 + 40.00% of excess |
| 6 | Above ₨5,600,000 & above | 45.00% | ₨1,610,000 + 45.00% of excess |
Frequently asked questions about FY 2025-26
Everything you need to know about Pakistan's income tax for fiscal year 2025-26.
What are the income tax slabs in Pakistan for 2025-26?
For tax year 2025-26, Pakistan's salaried tax slabs under the Finance Act 2025 are: tax-free up to PKR 600,000, then progressive rates from 1.00% upward across higher income brackets, capped at 35.00% on income above PKR 4,100,000. Yes — for FY 2025-26, an additional 9% surcharge applies on calculated tax if total income exceeds PKR 10,000,000.
When does the FY 2025-26 tax year start and end in Pakistan?
Pakistan's fiscal year 2025-26 runs from 1 July to 30 June, in line with the federal budget cycle. Finance Act 2025 governs the slabs and rates for this entire period. The annual tax return filing deadline for salaried individuals and AOPs is 30 September following the end of the fiscal year, unless the FBR extends it by notification.
Is the PKR 600,000 tax-free threshold still applicable for FY 2025-26?
Yes — for tax year 2025-26, the basic exemption threshold for salaried individuals remains PKR 600,000 of annual income. Salaried employees earning at or below this amount pay zero income tax for the year, but should still file a nil return to maintain Active Taxpayer (ATL) status.
How do I file my tax return for FY 2025-26?
Tax returns for FY 2025-26 are filed online through the FBR's IRIS 2.0 portal (iris.fbr.gov.pk). Salaried filers need their salary certificate, CNIC, and bank account details. The deadline is 30 September. Filing on time keeps you on the Active Taxpayers List, which gives you reduced withholding tax rates on banking, vehicles, and property transactions.
What's the difference between salaried and AOP tax rates for FY 2025-26?
Salaried individuals (where 75% or more of income is from salary) use the salaried slabs published in Finance Act 2025, with the lowest rates. AOPs (Association of Persons), partnerships, and non-salaried individuals use a separate slab schedule with higher marginal rates and a different threshold structure. Use the calculator on this page to compute either.