Income tax on 1.5 lac monthly salary in Pakistan from July 2025 – Check chart here

Good news for Pakistan’s salaried class! The federal government has announced major income tax cuts in the new Budget 2025-26, starting from July 2025. These changes are meant to ease the financial burden on middle-income earners.

What’s New?

If you earn Rs 150,000 per month (or Rs 1.8 million per year), your total income tax will now be Rs 72,000 annually, which is Rs 6,000 per month. This is much lower than what people used to pay before.

New Income Tax Slabs (2025-26)

Here’s how the tax will be calculated:

Monthly Tax Example

• 0% tax on income up to Rs 600,000

• 1% tax on income between Rs 600,001 and Rs 1.2 million

• 11% tax on income between Rs 1.2 million and Rs 2.2 million

• Lower tax rate of 1% (down from 5%) for those earning up to Rs 1.2 million per year

• 1% surcharge removed for professionals earning over Rs 1 million

These changes were made on the direction of Prime Minister Shehbaz Sharif after public and cabinet feedback. The goal is to support working-class families and slow down brain drain by making conditions better for professionals in Pakistan.

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