For 2025-26, a salary of Rs 150,000 a month carried income tax of Rs 6,000 a month, down from Rs 10,000 in 2024-25. The year ran from 1 July 2025 to 30 June 2026 and is called tax year 2026 on FBR's forms.
This is the year you report in the income tax return filed in the autumn of 2026. Enter your salary for that year to check that the tax your employer deducted matches the slabs.
What Finance Act 2025 changed
The 2025-26 budget cut rates for most salaried people, with the biggest cut at the bottom:
- Rs 600,000 to 1.2 million: rate cut from 5% to 1%.
- Rs 1.2 million to 2.2 million: rate cut from 15% to 11%, and the fixed amount fell from Rs 30,000 to Rs 6,000.
- Rs 2.2 million to 3.2 million: rate cut from 25% to 23%.
- Rs 3.2 million to 4.1 million: rate stayed at 30%, but the fixed amount fell to Rs 346,000 because of the lower slabs below it.
- Above Rs 4.1 million: 35%, with the fixed amount down to Rs 616,000.
- Surcharge: cut from 10% to 9% for salaried people with taxable income over Rs 10 million. Non-salaried individuals stayed at 10%.
The tax-free limit stayed at Rs 600,000 a year.
2025-26 against 2024-25
Monthly tax for the same salary under each year's slabs, with no bonus.
| Monthly salary | Tax per month 2025-26 | Tax per month 2024-25 |
|---|---|---|
| Rs 75,000 | Rs 250 | Rs 1,250 |
| Rs 100,000 | Rs 500 | Rs 2,500 |
| Rs 150,000 | Rs 6,000 | Rs 10,000 |
| Rs 200,000 | Rs 13,500 | Rs 19,167 |
| Rs 300,000 | Rs 38,833 | Rs 45,833 |
| Rs 500,000 | Rs 106,750 | Rs 113,750 |
| Rs 850,000 | Rs 249,883 | Rs 259,875 |
| Rs 1,000,000 | Rs 307,108 | Rs 317,625 |
The monthly saving grows with salary: Rs 1,000 at Rs 75,000, Rs 4,000 at Rs 150,000 and Rs 7,000 at Rs 300,000. At Rs 1,000,000 it passes Rs 10,000, helped by the lower surcharge. In relative terms the lower paid gained most: at Rs 100,000 a month, tax fell from Rs 2,500 to Rs 500.
Worked example with the 9% surcharge
Take a salary of Rs 850,000 a month.
- Annual salary: Rs 850,000 x 12 = Rs 10,200,000, which is over the Rs 10 million surcharge threshold.
- Slab: above Rs 4,100,000, so Rs 616,000 plus 35% of Rs 6,100,000 (Rs 2,135,000). Tax: Rs 2,751,000.
- Surcharge: 9% of the tax, Rs 247,590.
- Total for the year: Rs 2,998,590, about Rs 249,883 a month.
Under 2024-25 rules the same salary paid Rs 2,835,000 plus a 10% surcharge of Rs 283,500, a total of Rs 3,118,500. From 2026-27 the salaried surcharge no longer applies at all; see the 2026-27 calculator.
Using this page for your 2026 return
The return for tax year 2026 covers salary received from July 2025 to June 2026. Before you file:
- Add up gross salary, bonuses and taxable perks for those 12 months. Your employer's annual tax certificate should show this.
- Enter the yearly total here with "Yearly salary" selected.
- Compare the result with the tax deducted on the certificate. If more was deducted than the slabs require, the difference may be refundable once your return is accepted. If less was deducted, you may owe the balance.
If you changed jobs during the year, add the salary from both employers. Each employer only deducts on what it pays, so the combined income can fall in a higher slab.
Tax slabs 2025-26 for salaried individuals
The six slabs for tax year 2026. They apply where salary is more than 75% of taxable income.
| # | Annual taxable income | Tax |
|---|---|---|
| 01 | Up to 600,000 | 0% |
| 02 | 600,001 to 1,200,000 | 1% of the amount over 600,000 |
| 03 | 1,200,001 to 2,200,000 | Rs 6,000 + 11% of the amount over 1,200,000 |
| 04 | 2,200,001 to 3,200,000 | Rs 116,000 + 23% of the amount over 2,200,000 |
| 05 | 3,200,001 to 4,100,000 | Rs 346,000 + 30% of the amount over 3,200,000 |
| 06 | Above 4,100,000 | Rs 616,000 + 35% of the amount over 4,100,000 |
Other years are on the income tax slabs page. For your current pay, use the salary tax calculator.
These are estimates from the published slabs. Exempt allowances, arrears and a mid-year job change can all move the true figure. Check your tax certificate and your return. qaaf is not connected with FBR.
2025-26 tax questions
Which dates does tax year 2026 cover?
Tax year 2026 runs from 1 July 2025 to 30 June 2026. It is the same thing as the 2025-26 financial year. Salary paid in those 12 months is taxed under the Finance Act 2025 slabs and is reported in the return for tax year 2026.
How much tax on a Rs 200,000 salary in 2025-26?
Rs 13,500 a month. The annual salary of Rs 2,400,000 falls in the 23% slab: Rs 116,000 plus 23% of Rs 200,000, which comes to Rs 162,000 for the year. In 2024-25 the same salary paid about Rs 19,167 a month.
Who paid the 9% surcharge in 2025-26?
Salaried individuals whose taxable income for the year was over Rs 10 million, roughly Rs 833,333 a month. The surcharge is 9% of the income tax, not of the income. Below the threshold there is no surcharge. The calculator adds it automatically for this year.
My employer deducted more than this. Can I get it back?
Possibly. Tax on salary is final only once your annual liability is worked out. If total deductions for the year exceed the tax due under the slabs, you can claim the excess through your return for tax year 2026. Keep your tax certificate and payslips as evidence.
Are the 2025-26 slabs the same as 2026-27?
Only the first three are. Up to Rs 2.2 million a year the slabs match. Above that, 2026-27 has lower rates, two new slabs, and no salaried surcharge. So anyone earning above about Rs 183,000 a month pays less in 2026-27.
Last reviewed 29 September 2026. Results are estimates; official notices always take precedence.