ArticlesFBR salary tax slabs, explained
FBR salary tax slabs, explained
How progressive slabs stack, what FY 2024-25 and FY 2025-26 charge, and when the 4AB surcharge applies.
Updated 2026-09-22. Educational overview only.
Pakistan does not tax your whole salary at the top rate. Each rupee falls into one band. Lower bands stay cheap (or free). Only the rupees that cross the next threshold pay the higher percentage. That is why a 35% top rate is not a 35% bill on the full package.
How to read a slab row
Take FY 2025-26. Income up to Rs 600,000 is charged at 0%. The next Rs 600,000 (up to Rs 1,200,000) is charged at 1%. Income from Rs 1,200,001 to Rs 2,200,000 is charged at 11%, and so on. If you earn Rs 1,500,000, you pay:
- Rs 0 on the first 600,000
- 1% of 600,000 = Rs 6,000
- 11% of 300,000 = Rs 33,000
- Total slab tax Rs 39,000, which is 2.6% of salary, not 11%
Finance Act tables often write the same thing as a fixed amount plus a rate on the excess (“Rs 6,000 + 11% of the amount exceeding Rs 1,200,000”). That fixed amount is just the tax already due on the earlier slabs. PkTaxPay shows both the per-slab pieces and the total.
FY 2024-25 versus FY 2025-26
Finance Act 2024 raised several salaried rates for Tax Year 2025 (FY 2024-25). Finance Act 2025 then cut the lower and middle salaried rates for Tax Year 2026 (FY 2025-26), while leaving the 30% and 35% bands in place. On the same Rs 1,500,000 salary, FY 2024-25 slab tax is Rs 75,000. FY 2025-26 is Rs 39,000. The calculator’s “other year” note repeats this comparison for whatever figure you enter.
Surcharge, not another slab
Section 4AB adds a surcharge when annual taxable income exceeds Rs 10 million. It is a percentage of the Division I tax, not of salary: 10% in FY 2024-25 and 9% for salaried individuals in FY 2025-26. At exactly Rs 10,000,000 the surcharge does not apply. Super tax under section 4C is a different charge on very large income and is not included here.
Always re-read the Act
Slabs live in the First Schedule to the Income Tax Ordinance and change when Parliament passes a Finance Act (and sometimes a later amendment). This site cites the 2024 and 2025 Acts in the README. If FBR or a later statute republishes different numbers, those official figures win.