Overview of the 2026 Tax Slabs
The Federal Board of Revenue (FBR) announced the income tax rates for the tax year 2026, which will be applicable from 1 April 2025 to 31 March 2026. The rates have been revised to reflect the latest inflation index and to incentivize smaller earners. Below is a breakdown of the tax brackets for individual taxpayers under the new regime.
Individual Tax Rates (2026)
| Annual Income (PKR) | Tax Rate | Effective Tax per Year |
|---|---|---|
| 0 – 600,000 | 0% | 0 PKR |
| 600,001 – 1,200,000 | 5% | 30,000 PKR |
| 1,200,001 – 1,800,000 | 10% | 90,000 PKR |
| 1,800,001 – 3,000,000 | 15% | 210,000 PKR |
| 3,000,001 – 4,800,000 | 20% | 360,000 PKR |
| 4,800,001 – 6,000,000 | 25% | 600,000 PKR |
| Above 6,000,000 | 30% | Variable (30% of the amount exceeding 6,000,000) |
Key Takeaways
- The tax-free threshold has increased to 600,000 PKR.
- Middle‑income earners benefit from a lower marginal rate of 5% up to 1.2 million PKR.
- High‑income brackets now have a top rate of 30% on amounts exceeding 6 million PKR.
- Taxpayers can calculate their liability using the formulas
For accurate filing and to ensure compliance, consult a licensed tax professional or refer to the FBR’s official guidance documents released on the start of the tax year.
