Finance Minister Muhammad Aurangzeb presented the federal budget 2025–2026 in the National Assembly on Tuesday.
Under the guidance of the International Monetary Fund (IMF), the government has set a GDP growth target of 4.2% and aims to collect Rs14,131 billion in taxes — an 8.95% increase from the previous year’s target.
A major highlight of the budget is the reduction in income tax rates for the salaried class, bringing long-awaited relief to millions of individuals across Pakistan.
💡 Want to see how the new tax rates will impact your salary?
Use the Income Tax Calculator 2025–26 below to compare your income tax for the current and previous fiscal years and check your monthly take-home pay.
Income Tax Calculator 2025–26: Compare Old vs New Tax
Income Tax Slabs for the Fiscal Year 2025–2026
| Annual Income Range (PKR) | Applicable Tax Rate |
|---|---|
| Up to 600,000 | No tax (Tax exempted) |
| 600,001 – 1,200,000 | 1% on amount exceeding 600,000 |
| 1,200,001 – 2,200,000 | PKR 6,000 + 11% on amount exceeding 1,200,000 |
| 2,200,001 – 3,200,000 | PKR 116,000 + 23% on amount exceeding 2,200,000 |
| 3,200,001 – 4,100,000 | PKR 346,000 + 30% on amount exceeding 3,200,000 |
| Above 4,100,000 | PKR 616,000 + 35% on amount exceeding 4,100,000 |