The federal government’s revised income tax structure for FY2026 brings welcome relief to salaried individuals, offering reductions across all major income brackets. The new rates, compared to the 2025 tax regime, will translate into monthly savings ranging from PKR 2,000 to over PKR 16,000 — depending on income level.
At a Glance: Estimated Annual Tax Savings
- PKR 50,000/month (PKR 600,000/year):
- Tax in 2025: None
- Tax in 2026: None
- Change: No impact
- PKR 100,000/month (PKR 1.2 million/year):
- 2025 Tax: PKR 30,000
- 2026 Tax: PKR 6,000
- Monthly Saving: PKR 2,000
- PKR 250,000/month (PKR 3 million/year):
- 2025 Tax: PKR 380,000
- 2026 Tax: PKR 300,000
- Monthly Saving: PKR 6,667
- PKR 500,000/month (PKR 6 million/year):
- 2025 Tax: PKR 1,365,000
- 2026 Tax: PKR 1,281,000
- Monthly Saving: PKR 7,000
- PKR 1 million/month (PKR 12 million/year):
- 2025 Tax: PKR 3,911,000
- 2026 Tax: PKR 3,692,850
- Monthly Saving: PKR 18,209
- PKR 3 million/month (PKR 36 million/year):
- 2025 Tax: PKR 13,051,500
- 2026 Tax: PKR 12,848,850
- Monthly Saving: PKR 16,888
What It Means for You
The updated tax structure delivers across-the-board relief to salaried earners, particularly easing pressure on middle and upper-middle income households. With inflation continuing to affect purchasing power, the cuts are expected to improve disposable income and offer some breathing room for working professionals.
Whether you earn PKR 100,000 or PKR 3 million per month, the new system ensures at least some monthly savings — a positive move in challenging economic times.
