The FBR tax slabs for salaried class have been revised in line with federal government directives, bringing much-needed financial relief to millions of employees across Pakistan. Earlier this year, the Federal Board of Revenue (FBR) officially notified reduced income tax rates aimed at easing the burden on lower and middle-income earners while also rationalising taxes for higher-income individuals. These changes are expected to remain in force until June 2026, after which a new federal budget will introduce updated rates.
This move has been widely welcomed, especially at a time when inflation and rising living costs have put pressure on household budgets. By revising the tax structure, the government aims to improve take-home salaries and support economic stability.
What Are the New FBR Tax Slabs?
Under the revised FBR tax slabs for salaried class, income tax liability has been adjusted across different income brackets. The most notable relief is for individuals earning up to Rs600,000 annually, who will now pay no income tax at all. This step directly benefits low-income workers and reflects the government’s intention to protect the most vulnerable segments of the salaried population.
For those earning above this threshold, taxes have been reduced compared to previous years, particularly for middle-income earners who form the backbone of the workforce.
Updated Tax Rates Effective January 2026
According to the FBR notification, the tax structure from January 2026 will work as follows:
- Up to Rs600,000: No tax
- Rs600,001 to Rs1,200,000: 1% of the amount exceeding Rs600,000
- Rs1,200,001 to Rs2,200,000: Rs6,000 plus 11% of the amount exceeding Rs1,200,000
- Rs2,200,001 to Rs3,200,000: Rs116,000 plus 23% of the amount exceeding Rs2,200,000
- Rs3,200,001 to Rs4,100,000: Rs345,000 plus 30% of the amount exceeding Rs3,200,000
- Above Rs4,100,000: Rs615,000 plus 35% of the amount exceeding Rs4,100,000
These FBR tax slabs for salaried class apply nationwide and are designed to balance revenue generation with taxpayer relief.
How Lower and Middle-Income Earners Benefit
One of the most significant aspects of the revised slabs is the reduced tax burden on lower and middle-income groups. Employees earning just above Rs600,000 will now pay a minimal tax rate of 1%, ensuring that small salary increments are not heavily penalised.
Similarly, individuals earning up to Rs2.2 million annually will see a noticeable reduction in their overall tax liability compared to previous years. This extra disposable income can help households better manage essentials such as education, healthcare, and utilities.
Impact on Higher-Income Salaried Individuals
While the primary focus is relief for lower earners, the FBR tax slabs for salaried class also bring clarity and relative stability for higher-income individuals. Although higher tax rates still apply to top earners, the revised structure aims to ensure fair taxation rather than excessive burden.
By keeping the highest tax rate capped at 35%, the government seeks to maintain a balance between revenue needs and discouraging tax avoidance or brain drain.
Duration and Future Outlook
These revised tax slabs will remain effective until June 2026. The government has indicated that any further changes will be announced as part of the next federal budget. This gives salaried individuals a clear picture of their tax obligations for the current financial cycle, allowing for better financial planning.
Experts believe that predictable and transparent tax policies can improve compliance and trust between taxpayers and authorities. The current revisions are seen as a step in that direction.
Why These Changes Matter
The updated FBR tax slabs for salaried class are more than just numbers on paper. They directly affect monthly salaries, household savings, and overall economic confidence. With inflation still a concern, even modest tax relief can make a meaningful difference in daily life.
Moreover, easing the tax burden on salaried individuals may encourage greater participation in the documented economy, helping broaden the tax base over time.
The revised FBR tax slabs for salaried class represent a practical attempt to provide relief where it is most needed while maintaining fairness across income levels. By exempting low-income earners and reducing rates for middle-income groups, the government has taken a taxpayer-friendly approach for the current fiscal period.
As June 2026 approaches, all eyes will be on the next budget to see whether this direction continues. For now, salaried individuals can benefit from reduced deductions and plan their finances with greater certainty.
