Karachi, August 20, 2025 – The Federal Board of Revenue (FBR) has officially notified the updated salary tax card for the tax year 2025-26, revising withholding tax slabs for salaried employees.
The notification follows the amendments introduced through the Finance Act, 2025, effective from July 1, 2025.
The FBR stated that the updated tax card is designed to ensure fair and progressive taxation, with deductions applied directly from monthly salaries under Section 149 of the Income Tax Ordinance, 2001. This step affects a wide spectrum of employees, particularly those in middle and high-income brackets, as their salary incomes will now be taxed under adjusted slabs.
Employees with a salary of up to Rs600,000 annually will remain fully exempt. However, as income levels rise, the burden of taxation increases sharply. Salaries exceeding Rs10 million will face not only a 35% tax rate but also an additional surcharge of 9%. Employers across Pakistan are required to comply strictly with the new system while calculating monthly deductions from their staff salaries.
Below is a simplified version of the FBR’s revised tax slabs for salaried individuals:
| Taxable Annual Salary (Rs) | Applicable Tax |
| Up to 600,000 | 0% (Exempt) |
| 600,001 – 1,200,000 | 1% of amount exceeding 600,000 |
| 1,200,001 – 2,200,000 | 6,000 + 11% of amount exceeding 1,200,000 |
| 2,200,001 – 3,200,000 | 116,000 + 23% of amount exceeding 2,200,000 |
| 3,200,001 – 4,100,000 | 346,000 + 30% of amount exceeding 3,200,000 |
| Above 4,100,000 | 616,000 + 35% of amount exceeding 4,100,000 |
| Above 10,000,000 | 616,000 + 35% of excess over 4,100,000 + 9% surcharge |
The FBR urged taxpayers to review their income brackets carefully to avoid discrepancies, while stressing that the updated salary tax card would bring more transparency and predictability in the taxation system.