Understanding the FBR income tax slabs is essential for accurate tax planning. The Finance Act 2025 introduced the slabs for Tax Year 2026 with significant differences between salaried and business/non-salaried taxpayers.
Salaried Individuals: Tax Slabs 2025-26
The salaried tax structure has 6 bands. The first PKR 600,000 is tax-free. The maximum rate of 35% applies to income above PKR 4,100,000. A 9% surcharge applies if your gross income exceeds PKR 10,000,000 (1 crore).
- Up to PKR 600,000: 0% (Nil)
- PKR 600,001 to 1,200,000: 1% of excess over 600,000
- PKR 1,200,001 to 2,200,000: PKR 6,000 + 11% of excess over 1,200,000
- PKR 2,200,001 to 3,200,000: PKR 116,000 + 23% of excess over 2,200,000
- PKR 3,200,001 to 4,100,000: PKR 346,000 + 30% of excess over 3,200,000
- Above PKR 4,100,000: PKR 616,000 + 35% of excess over 4,100,000
Business / Non-Salaried: Tax Slabs 2025-26
Business rates are higher across all bands. The maximum rate is 45% for income above PKR 5,600,000. A 10% surcharge applies above the 1 crore threshold.
- Up to PKR 600,000: 0% (Nil)
- PKR 600,001 to 1,200,000: 15% of excess over 600,000
- PKR 1,200,001 to 1,600,000: PKR 90,000 + 20% of excess over 1,200,000
- PKR 1,600,001 to 3,200,000: PKR 170,000 + 30% of excess over 1,600,000
- PKR 3,200,001 to 5,600,000: PKR 650,000 + 40% of excess over 3,200,000
- Above PKR 5,600,000: PKR 1,610,000 + 45% of excess over 5,600,000
Surcharge Rules
Salaried individuals earning above PKR 10,000,000 pay an additional 9% surcharge on total tax. Business/non-salaried individuals pay 10% surcharge at the same threshold. Note: The surcharge has been scrapped under Finance Act 2026 for Tax Year 2027.
Practical Example
A salaried employee earning PKR 2,500,000 annually falls into the 23% slab. Their tax is PKR 116,000 plus 23% of the excess over PKR 2,200,000. That works out to PKR 185,000 total tax. An effective rate of just 7.4%.
Use our free tax calculator to compute your exact liability instantly.