FBR announces salary income tax slabs for 2026

In line with the federal government’s directives, the Federal Board of Revenue (FBR) has announced reduced tax rates for salaried individuals earlier this year.

The FBR issued a formal notification in August 2025, outlining the revised tax slabs to provide financial relief to the salaried class. The changes benefit lower and middle-income earners while also reducing tax liabilities for higher-income individuals.

These revised tax slabs will remain in effect until June 2026, when the new budget will introduce updated tax rates.

FBR Tax Slabs for Salaried Class from January 2026:

• Up to Rs600,000: No tax

• Rs600,001 to Rs1,200,000: 1% of the amount exceeding Rs600,000

• Rs1,200,001 to Rs2,200,000: Rs6,000 plus 11% of the amount exceeding Rs1,200,000

• Rs2,200,001 to Rs3,200,000: Rs116,000 plus 23% of the amount exceeding Rs2,200,000

• Rs3,200,001 to Rs4,100,000: Rs345,000 plus 30% of the amount exceeding Rs3,200,000

• Above Rs4,100,000: Rs615,000 plus 35% of the amount exceeding Rs4,100,000

These revisions are aimed at giving financial relief to lower and middle-income workers, while ensuring fair taxation for higher earners.

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