FBR Income Tax Slabs & Surtax Rates for Tax Year 2025-26

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FBR Income Tax Slabs Overview

Each year, the Government of Pakistan introduces changes to the income tax brackets for salaried individuals, business sole proprietors, and Association of Persons (AOP) through the Finance Act. Knowing your applicable tax slab helps you estimate monthly payroll deductions, plan corporate expenses, and ensure accurate tax return filing.

Salaried Income Tax Slabs for Tax Year 2025-26

For salaried individuals (where salary income exceeds 75% of total taxable income), the tax slabs for Tax Year 2025-26 are structured as follows:

• Up to Rs. 600,000: 0% (Tax-Exempt)
• Rs. 600,001 to Rs. 1,200,000: 5% of the amount exceeding Rs. 600,000
• Rs. 1,200,001 to Rs. 2,400,000: Rs. 30,000 + 15% of the amount exceeding Rs. 1,200,000
• Rs. 2,400,001 to Rs. 3,600,000: Rs. 210,000 + 25% of the amount exceeding Rs. 2,400,000
• Rs. 3,600,001 to Rs. 6,000,000: Rs. 510,000 + 30% of the amount exceeding Rs. 3,600,000
• Above Rs. 6,000,000: Rs. 1,230,000 + 35% of the amount exceeding Rs. 6,000,000

Business Slabs & AOP Tax Rates

For non-salaried individuals, sole proprietors, and AOPs, the tax rates are slightly higher to encourage documentation. The tax slabs are as follows:

1. Up to Rs. 600,000: 0% (Tax-Exempt)
2. Rs. 600,001 to Rs. 800,000: 15% of the amount exceeding Rs. 600,000
3. Rs. 800,001 to Rs. 1,200,000: Rs. 30,000 + 20% of the amount exceeding Rs. 800,000
4. Rs. 1,200,001 to Rs. 2,400,000: Rs. 110,000 + 30% of the amount exceeding Rs. 1,200,000
5. Above Rs. 2,400,000: Rs. 470,000 + 35% of the amount exceeding Rs. 2,400,000

How to Calculate Your Salary Tax

To calculate your monthly tax deduction, divide your annual taxable salary into the appropriate slab. Subtract the threshold limit of the previous slab, multiply the excess by the slab percentage, and add the fixed tax amount. Alternatively, you can use our free, automated Salary Tax Calculator on the homepage for instant and error-free results.