Salary income tax slabs– In line with the federal government’s directives, the Federal Board of Revenue (FBR) has announced a reduction in tax rates for salaried individuals earlier this year.
The FBR issued a formal notification in August 2025 outlining the revised tax slabs for salaried class in order to provide financial relief to them.
The government has introduced changes to the tax structure for salaried individuals, offering relief to lower and middle-income earners while also reducing tax liabilities for those in higher income brackets.
The revised tax slabs for salaried class will remain in place till June 2026 when new budget will be presented with updated tax rates.
FBR Tax Slabs for Salaried Class from January 2026
The tax slabs will remain same for the salaried class from January 2026. The salary income tax rates for salaried individuals are as follows:
For taxable income up to Rs600,000, no tax will be applied.
For taxable income between Rs600,000 and Rs1,200,000, the tax rate will be 1% of the amount exceeding Rs. 600,000.
For taxable income between Rs1,200,000 and Rs2,200,000, a fixed tax of Rs6,000 plus 11% of the amount exceeding Rs1,200,000 will apply.
For taxable income between Rs2,200,000 and Rs3,200,000, the tax liability will be Rs116,000 plus 23% of the amount exceeding Rs2,200,000.
For taxable income between Rs3,200,000 and Rs4,100,000, the rate will be Rs345,000 plus 30% of the amount exceeding Rs3,200,000.
For taxable income exceeding Rs4,100,000, the tax will be Rs615,000 plus 35% of the amount exceeding Rs4,100,000.
These revisions are designed to provide financial relief to lower and middle-income salaried workers, while also ensuring that individuals in higher income brackets are taxed fairly.
