Salaried taxpayers can use the applicable Tax Year 2026 slabs to calculate their income tax liability before the September 30 filing deadline.
ISLAMABAD: Salaried individuals should carefully review the applicable income tax slabs for Tax Year 2026 to calculate their tax liability accurately when filing their annual income tax returns.
The Federal Board of Revenue (FBR) has prescribed different tax rates based on taxable salary income for Tax Year 2026. Taxpayers are required to determine their taxable income and apply the relevant slab to calculate the amount of income tax payable.
Salary income tax slabs for Tax Year 2026
The applicable salary income tax rates for Tax Year 2026 are as follows:
| Taxable income | Income tax payable |
| Does not exceed Rs600,000 | 0% |
| Exceeds Rs600,000 but does not exceed Rs1,200,000 | 1% of the amount exceeding Rs600,000 |
| Exceeds Rs1,200,000 but does not exceed Rs2,200,000 | Rs6,000 + 11% of the amount exceeding Rs1,200,000 |
| Exceeds Rs2,200,000 but does not exceed Rs3,200,000 | Rs116,000 + 23% of the amount exceeding Rs2,200,000 |
| Exceeds Rs3,200,000 but does not exceed Rs4,100,000 | Rs346,000 + 30% of the amount exceeding Rs3,200,000 |
| Exceeds Rs4,100,000 | Rs616,000 + 35% of the amount exceeding Rs4,100,000 |
The tax calculation is progressive, meaning taxpayers move into a higher rate only when their taxable income falls within the corresponding higher slab.
Surcharge on high-income salaried individuals
An additional surcharge applies where taxable income exceeds Rs10 million.
In such cases, the income tax is calculated at Rs616,000 plus 35% of the amount exceeding Rs4.1 million, along with a 9% surcharge.
Salaried taxpayers with income above the specified threshold should therefore account for the additional surcharge when calculating their overall tax liability for Tax Year 2026.
Taxpayers urged to calculate income accurately
The progressive tax structure makes it important for salaried individuals to correctly determine their taxable income before filing their annual returns.
Taxpayers should ensure that salary income and other relevant particulars are accurately disclosed and that the applicable tax slab is used when completing the Tax Year 2026 return.
With the September 30, 2026 filing deadline approaching, timely and accurate filing can help taxpayers avoid errors and potential complications with the tax authorities.