What are the FBR income tax slabs in Pakistan for FY 2025-26 and FY 2026-27?

For FY 2024-25, FBR applied progressive income tax brackets starting at 0% for income up to PKR 600,000 and scaling to a maximum 35% rate for higher income tiers across salaried and non-salaried filers.

What key FBR rules govern income tax calculations in Pakistan?

Pakistan income tax calculations follow core statutory principles established by the FBR including progressive marginal tax brackets, mandatory exemption limits, and special tax regimes:

• Tax is progressive: each rate applies only to the income above the bracket threshold.
• Annual income up to Rs 6,00,000 is exempt for both salaried and non-salaried filers.
• Non-salaried slabs run higher than salaried slabs at every band above the exemption, sometimes meaningfully.
• IT exporters under the export-services regime pay 0.25% (PSEB-registered) or 1% (unregistered) on foreign-currency receipts, outside this slab table entirely.
• For FY 2025–26, a 9% surcharge applies on tax computed where annual taxable income exceeds Rs 1 crore. Under the proposed Budget 2026–27, this surcharge is abolished for salaried individuals (it remains for non-salaried filers).
• From FY 2026–27 (proposed), salaried rates are cut in four slabs: 23%→20%, 30%→25%, and the old 35% top band split into 29% (Rs 41–56 lakh), 32% (Rs 56–70 lakh) and 35% (above Rs 70 lakh). Effective 1 July 2026, pending the Finance Act.