Budget 2026-27: salary tax relief and restructured slabs

The Finance Bill 2026 restructures the salaried income tax slabs and introduces lower marginal rates for annual incomes between PKR 2.2 million and PKR 7 million.

What changed?

New 25%, 29% and 32% bands have been introduced, while the top 35% rate now begins above PKR 7 million. The 9% surcharge on annual salary income above PKR 10 million is proposed to be abolished.

What it means for take-home pay

Employees in the affected bands should see lower monthly withholding and higher net salary. Use the calculator to compare FY 2025-26 with FY 2026-27.