- June 13, 2025
- Posted by: Primarius Consultants
- Categories: Blogs, News, Taxation Services
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By Ajwad Ali
Salary Tax Comparison & Calculations – Tax Year 2025 vs Proposed 2026
| Monthly Salary (PKR) | Annual Salary (PKR) | Total Tax 2025 (PKR) | Total Tax 2026 (PKR) | Monthly Tax 2025 (PKR) | Monthly Tax 2026 (PKR) | Monthly Tax Decrease (PKR) |
|---|---|---|---|---|---|---|
| 50,000 | 600,000 | 0 | 0 | 0 | 0 | 0 |
| 100,000 | 1,200,000 | 30,000 | 6,000 | 2,500 | 500 | 2,000 |
| 200,000 | 2,400,000 | 230,000 | 162,000 | 19,167 | 13,500 | 5,667 |
| 300,000 | 3,600,000 | 550,000 | 466,000 | 45,833 | 38,833 | 7,000 |
| 400,000 | 4,800,000 | 945,000 | 861,000 | 78,750 | 71,750 | 7,000 |
| 500,000 | 6,000,000 | 1,365,000 | 1,281,000 | 113,750 | 106,750 | 7,000 |
| 800,000 | 9,600,000 | 2,625,000 | 2,541,000 | 218,750 | 211,750 | 7,000 |
| 1,000,000 | 12,000,000 | 3,811,500 | 3,692,850 | 317,625 | 307,738 | 9,888 |
| 1,500,000 | 18,000,000 | 6,221,500 | 5,981,850 | 518,458 | 498,488 | 19,971 |
| 2,000,000 | 24,000,000 | 8,431,500 | 8,270,850 | 702,625 | 689,238 | 13,388 |
Key Highlights:
- No income tax will be applicable on annual salary income up to PKR 600,000.
- While the number of tax slabs and income thresholds remain the same, tax rates have been revised.
- The existing tax rates fall within a range of 5% to 35%.
- Under the proposed structure, rates will range from 1% to 35%, offering relief particularly to low and middle-income salaried individuals.
- Rate of surcharge for salaried individuals having taxable income exceeding Rs 10 million is reduced from 10% to 9%.