According to the new structure under the Finance Act 2024, the tax for
those earning between PKR 600,001 and PKR 1,200,000 is now just 1%, down
from the previous 5%. Similarly, the tax rate for incomes between PKR
1,200,001 and PKR 2,200,000 has been brought down to 11% from 15%. The
third slab (PKR 2.2M to PKR 3.2M) has also seen a reduction from 25% to
23%.
These reforms directly impact salaried individuals, especially those
earning between PKR 50,001 to PKR 183,333 per month. The tax burden has
been eased to improve disposable income, support consumption, and
address rising inflation.
Income Tax Slabs for Salaried Individuals 2025-26
Up to PKR 600,000/year (PKR 50,000/month): 0% tax
PKR 600,001–1,200,000: 1% of the amount exceeding PKR 600,000
PKR 1,200,001–2,200,000: PKR 6,000 + 11% of amount exceeding PKR
1,200,000
PKR 2,200,001–3,200,000: PKR 116,000 + 23% of amount exceeding PKR
2,200,000
PKR 3,200,001–4,100,000: PKR 350,000 + 30% of amount exceeding PKR
3,200,000
Above PKR 4,100,000: PKR 620,000 + 35% of amount exceeding PKR 4,100,000
Surcharge: 10% surcharge on income tax for those earning above PKR 10
million/year
This progressive tax structure reinforces the government’s focus on
equitable revenue generation while easing pressure on low to mid-tier
earners.
Salary Increase in Budget 2025-26 Pakistan
Alongside tax reforms, the salary increase in budget 2025-26 Pakistan is
another key highlight. A proposed 10-15% hike for government employees
aims to help offset inflation and improve economic resilience. For
instance, a 15% raise on a PKR 1 million salary brings it to PKR 1.15
million, which under the new structure results in just PKR 5,500 tax
compared to PKR 20,000 last year—substantial net relief.
Using the Salary Tax Calculator 2025
You can calculate your taxes using any salary tax calculator 2025 based
on the new slabs. Top platforms include:
TaxCalculator.pk
PakTaxCalculator.pk
Befiler.com
TaxationPk.com
Dawn.com
Just enter your salary, and the Pakistan budget 2025 26 income tax
calculator will show your monthly and annual deductions.
Example Calculation:
Annual Salary: PKR 2,400,000
Tax: PKR 116,000 + 23% of (2.4M – 2.2M) = PKR 162,000/year or PKR
13,500/month
The budget 2025 26 Pakistan income tax reforms signal positive changes
for the salaried class, especially those in the lower and middle-income
brackets. While higher earners face increased contributions through
surcharges, the overall structure remains progressive. For personalized
planning, consult a tax professional and use the income tax calculator
2025-26 for accurate projections.
For detailed updates and tools, visit FBR.gov.pk or platforms like
TaxationPk.com and Befiler.com.
|