Revised Income Tax Rates 2025-26 for Salaried Persons

Government of Pakistan, Inland Revenue Service Unit-IV Withholding Zone issued a Notification on 08-07-2025 in connection with Revised Income Tax Rates 2025-26 for Salaried Persons. The details are as follows:

The

Federal Government has revised the income tax slabs for the salaried persons/Government employees. Bughetary changes made through Finance Act, 2025 – Intimation Regarding. It is apprised that the following amendments in the different provisions of the withholding Taxes have been made through the Finance Act, 20225:

Salaries – Section 149

Every Person responsible for paying salary to an employee shall deduct tax from the amount paid as per the following schedule:

Table of New Income Tax Rates 2025-2026

Sr No	Taxable Income	Rate of Tax
1	Where taxable income does not exceed Rs. 600,000/-	0%
2	Where taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000	01% of the amount exceeding Rs. 600,000/-
3	Where taxable income exceeds Rs 1,200,000/- but does not exceed Rs 2.200,00/-	Rs. 6,000/- 11% of the amount exceeding Rs. 1,200,000/-
4	Where taxable income exceed Rs 2,200,00/- but not exceed RS 32,00,000	Rs. 116,00/- +23% of the amount exceeding Rs. 2,200,000/-
5	Where taxable income exceeds Rs. 3,200,000/- but does not xceed Rs. 3,200,000/-	Rs. 346,000/- + 30% of the amount exceeding Rs. 3,200,000/-
6	Where taxable income exceeds Rs. 4,100,000/-	Rs. 616,000/- + 35% of the amount exceeding Rs. 4,100,000/-

Provided that a pension received by an individual from a former employer in a year, the rate of tax on such income shall be set out in the table, namely:

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