What the FY2025-26 salary tax slabs mean for your monthly take-home
The lowest two brackets were cut in the Finance Act 2025. Here is the effect on salaries from Rs 60,000 to Rs 500,000 a month, worked through.
The Finance Act 2025 reduced the rate on the first taxable bracket for salaried individuals from 5% to 1% and the second from 15% to 11%, while leaving the exemption threshold at Rs 600,000 a year. The surcharge on very high incomes was trimmed from 10% to 9%.
Who benefits most
The relief is concentrated on salaries between Rs 50,000 and Rs 183,000 a month, the range where most formal-sector employees sit.
| Monthly salary | Annual tax FY2024-25 | Annual tax FY2025-26 | Saving / year |
|---|---|---|---|
| Rs 75,000 | Rs 15,000 | Rs 3,000 | Rs 12,000 |
| Rs 100,000 | Rs 30,000 | Rs 6,000 | Rs 24,000 |
| Rs 150,000 | Rs 120,000 | Rs 72,000 | Rs 48,000 |
| Rs 250,000 | Rs 380,000 | Rs 300,000 | Rs 80,000 |
| Rs 500,000 | Rs 1,365,000 | Rs 1,281,000 | Rs 84,000 |
Above Rs 4.1 million a year (about Rs 342,000 a month) the marginal rate stays at 35%, so the saving flattens.
What to do
- Check your own figure with the Income Tax Calculator.
- If your employer is still deducting at last year's rates, ask HR to update the withholding schedule; the excess is refundable only after you file a return.
- Not on the Active Taxpayer List yet? Becoming a filer takes 20 minutes and cuts withholding on cars, property and bank profit.
Sources
- Finance Act 2025: Government of Pakistan
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