The Government of Pakistan has introduced a new income tax structure for 2026, which facilitates the tax burden on the employees. The revised rates provide reductions in monthly and annual taxes across low, middle and high income groups compared to the 2025 regime. Key Points: Lowest Income Bracket (PKR 50,000/Month): No Tax in both 2025 and 2026. No change. PKR 100,000/month (annual: PKR 1.2 million): Tax in 2025: PKR 30,000 annual tax in 2026: PKR 6,000 annual monthly savings: PKR 2,000 PKR 250,000/month (annual: PKR 3 million): Tax in 2025: PKR 380,000 annual tax in 2026: (Annual: PKR 6 million): Tax in 2025: PKR 1,365,000 annual tax in 2026: PKR 1,281,000 annual monthly savings: PKR 7,000 PKR 1 million/month (annual: PKR 12 million): Tax in 2025: PKR 3,911,000 annual tax in 2026: PKR 3,692,8505050 PKR 18.209 Million/month, annually: PKR 36 million level.
Income Tax Calculator 2025: How much you can save after budget changes
