Side-by-side comparison of Pakistan FBR income tax slabs between Finance Act 2025 (TY 2025-26) and Budget 2026-27 (TY 2026-27, as announced 12 June 2026). New 8-band salaried structure, the 9% surcharge above PKR 10M scrapped, PSEB 0.25% extended to 2029, IT companies tax cut. Calculate your exact delta below.
The 9% / 10% surcharge above PKR 10M from FA 2025 is gone. High-income salaried filers save the headline charge entirely.
Three new intermediate rates (25%, 29%, 32%) inserted between PKR 3.2M and PKR 7M. Top 35% now starts at PKR 7M (was PKR 4.1M).
IT export Final Tax Regime continues 3 more years through 30 June 2029. IT companies' professional tax cut from 2% to 1.25%.
Where the headline numbers land before we get to the personal income tax detail. The FY 2026-27 framework targets a fiscal deficit around 4% of GDP (down from 7.8% in June 2023) and tightens FBR revenue by roughly 17% via base broadening rather than headline rate hikes.
| Fiscal indicator | FY 2025-26 | FY 2026-27 | Note |
|---|---|---|---|
| Total federal outlay | ~ PKR 14.5tn | PKR 17.5tn | Tabled by FM Aurangzeb |
| FBR revenue target | ~ PKR 13tn collected | ~ PKR 15.2tn | ~17% jump |
| Tax expenditure (exemptions) | PKR 2.43tn | PKR 2.35tn | First drop in 7 yrs |
| Petroleum Development Levy | ~ PKR 1.5tn | PKR 1.7tn | Higher fuel revenue |
| Federal PSDP | ~ PKR 1.0tn | PKR 1.1tn+ | Modest lift |
| Salary & pension hike | - | +7% proposed | Federal staff & retirees |
FY25-26 figures are provisional estimates from FBR / Ministry of Finance disclosures during the speech and pre-budget documents. Final FY27 numbers are subject to amendments in the Finance Act 2026 as the bill passes the National Assembly.
As-announced Budget 2026-27 rates (12 June 2026) vs Finance Act 2025 rates. The new structure inserts three intermediate bands (25%, 29%, 32%) and lifts the top-rate threshold from PKR 4.1M to PKR 7M.
| Taxable income | TY 2025-26 | TY 2026-27 | Change |
|---|---|---|---|
| Up to PKR 600,000 | 0% | 0% | No change |
| PKR 600,001 - 1,200,000 | 1% | 1% | No change |
| PKR 1,200,001 - 2,200,000 | 11% + Rs 6,000 fixed | 11% + Rs 6,000 fixed | No change |
| PKR 2,200,001 - 3,200,000 | 23% + Rs 116,000 fixed | 20% + Rs 116,000 fixed | 3% cut |
| PKR 3,200,001 - 4,100,000 | 30% + Rs 346,000 fixed | 25% + Rs 316,000 fixed | 5% cut |
| PKR 4,100,001 - 5,500,000 (new band) | 35% + Rs 616,000 fixed | 29% + Rs 541,000 fixed | 6% cut |
| PKR 5,500,001 - 7,000,000 (new band) | 35% + Rs 616,000 fixed | 32% + Rs 947,000 fixed | 3% cut |
| Above PKR 7,000,000 | 35% + Rs 616,000 fixed | 35% + Rs 1,427,000 fixed | No change |
The 4,100,001 - 5,500,000 and 5,500,001 - 7,000,000 brackets did not exist as separate bands in TY 2025-26; income in that range fell into the old 35% band. The intermediate breakpoints (4.1M, 5.5M) are inferred from the FM's speech and will be cross-checked against the Finance Bill 2026 PDF.
Budget 2026-27 left the non-salaried First Schedule untouched. Brackets and rates from TY 2025-26 carry forward: 0% up to PKR 600K, then 15% / 20% / 30% / 40% / 45% through the bands. The only difference for non-salaried filers between the two years is the scrapped 10% surcharge above PKR 10M.
Computed live from the same slab math the calculator uses. Negative values indicate you pay less under Budget 2026-27; positive values indicate you pay more. Salaried path only - the non-salaried table would be a flat row of zeros up to PKR 10M (slabs unchanged), with the only savings coming from the scrapped 10% surcharge above PKR 10M.
| Monthly salary | Annual | Tax FY25-26 | Tax FY26-27 | Annual save | Monthly impact |
|---|---|---|---|---|---|
| Rs 50,000 | Rs 600,000 | Rs 0 | Rs 0 | - | no change |
| Rs 100,000 | Rs 1,200,000 | Rs 6,000 | Rs 6,000 | - | no change |
| Rs 150,000 | Rs 1,800,000 | Rs 72,000 | Rs 72,000 | - | no change |
| Rs 200,000 | Rs 2,400,000 | Rs 162,000 | Rs 156,000 | +Rs 6,000 | ≈ Rs 500 more take-home |
| Rs 250,000 | Rs 3,000,000 | Rs 300,000 | Rs 276,000 | +Rs 24,000 | ≈ Rs 2,000 more take-home |
| Rs 300,000 | Rs 3,600,000 | Rs 466,000 | Rs 416,000 | +Rs 50,000 | ≈ Rs 4,167 more take-home |
| Rs 400,000 | Rs 4,800,000 | Rs 861,000 | Rs 744,000 | +Rs 117,000 | ≈ Rs 9,750 more take-home |
| Rs 500,000 | Rs 6,000,000 | Rs 1,281,000 | Rs 1,107,000 | +Rs 174,000 | ≈ Rs 14,500 more take-home |
| Rs 600,000 | Rs 7,200,000 | Rs 1,701,000 | Rs 1,497,000 | +Rs 204,000 | ≈ Rs 17,000 more take-home |
| Rs 750,000 | Rs 9,000,000 | Rs 2,331,000 | Rs 2,127,000 | +Rs 204,000 | ≈ Rs 17,000 more take-home |
| Rs 1,000,000 | Rs 12,000,000 | Rs 3,719,100 | Rs 3,177,000 | +Rs 542,100 | ≈ Rs 45,175 more take-home |
| Rs 1,500,000 | Rs 18,000,000 | Rs 6,029,100 | Rs 5,277,000 | +Rs 752,100 | ≈ Rs 62,675 more take-home |
Figures are computed using the as-announced Budget 2026-27 slab structure with the 4.1M / 5.5M intermediate breakpoints inferred from the FM's speech. The Finance Bill 2026 PDF is the source of truth - any deviation in the bill text will shift figures in the PKR 3.2M-7M annual range.
Section 154A Final Tax Regime on IT and IT-enabled services export remittances continues three more years. PSEB-registered freelancers and software houses keep the 0.25% rate on inward export remittances.
Incorporated IT companies (Pvt Ltd software houses, BPOs, IT services firms) get a 75-basis-point cut on professional income and minimum tax. Stacks with the extended 0.25% Final Tax Regime on export receipts.
YouTube, TikTok, Instagram earnings come into the federal tax net via a new formula-based regime. Exact rate to be confirmed against the Finance Bill 2026 PDF.
Despite a 17.8% GDP share, the retail sector remains largely outside formal documentation in Budget 2026-27. Tajir Dost-style settlement continues. Petroleum sector taxed via the PDL, target raised to PKR 1.7tn for FY27.
Electric vehicle import and manufacturing concessions continue to incentivise the EV transition. Federal Excise Duty on luxury petrol vehicles and high-cc imports is retained / tiered by engine displacement. Section 231B token tax structure is broadly carried forward - confirm exact bands against the Finance Bill 2026 PDF.
Despite IMF pressure to expand the tax base, Budget 2026-27 kept the rough tax treatment of solar imports intact. No new headline sales tax or customs duty was added on solar PV equipment in the speech. The net-metering policy framework sits with NEPRA / provincial bodies rather than the federal Finance Act.
The defence vote was lifted year-on-year in Budget 2026-27. Total includes procurement, salaries, pensions of armed forces personnel, and inter-services allocations. Confirm the exact figure against the printed Budget in Brief document on finance.gov.pk - speech-day numbers can differ from final allocations after NA debate.
Federal Excise Duty on tobacco, e-cigarettes, sugary beverages, and select telecom services continues with rate adjustments. Sales tax base broadening removed several zero-rated and exempt categories. Check FBR's post-budget SRO list for exact item-level changes.
Section 7E (1% deemed tax on immovable property worth more than PKR 25M) was still in force as of speech day but is heavily litigated. Industry bodies pushed for a higher threshold or repeal; IMF wanted retention. The Finance Bill 2026 wording is the source of truth - watch for any threshold lift or self-occupied exemption broadening.
Every calculator on this site now defaults to Tax Year 2026-27 - pick from the dropdown to compare against TY 2025-26 or TY 2024-25.