ISLAMABAD – The proposed Budget 2026–27 tax structure for salaried class outlines broadly tiered relief framework, with minimal or no change for lower-income segments and progressively higher benefits concentrated in the middle-to-upper income brackets.
Individuals earning up to Rs 175,000 per month see no revision in their tax liability, with annual tax remaining unchanged across these slabs.
Budget 2026-27: Proposed Tax Impact for Salaried Class
| Monthly Salary | Annual Salary | Existing Annual Tax (2025-26) | Existing Monthly Tax (2025-26) | Proposed Annual Tax (2026-27) | Proposed Monthly Tax (2026-27) | Annual Tax Relief | Per Month Tax Relief |
| 100,000 | 1,200,000 | 6,000 | 500 | 6,000 | – | – | – |
| 125,000 | 1,500,000 | 39,000 | 3,250 | 39,000 | 3,250 | – | – |
| 150,000 | 1,800,000 | 72,000 | 6,000 | 72,000 | 6,000 | – | – |
| 175,000 | 2,100,000 | 105,000 | 8,750 | 105,000 | 8,750 | – | – |
| 200,000 | 2,400,000 | 162,000 | 13,500 | 156,000 | 13,000 | 6,000 | 500 |
| 225,000 | 2,700,000 | 231,000 | 19,250 | 216,000 | 18,000 | 15,000 | 1,250 |
| 250,000 | 3,000,000 | 300,000 | 25,000 | 276,000 | 23,000 | 24,000 | 2,000 |
| 275,000 | 3,300,000 | 376,000 | 31,333 | 341,000 | 28,417 | 35,000 | 2,917 |
| 300,000 | 3,600,000 | 466,000 | 38,833 | 416,000 | 34,667 | 50,000 | 4,167 |
| 325,000 | 3,900,000 | 556,000 | 46,333 | 491,000 | 40,917 | 65,000 | 5,417 |
| 350,000 | 4,200,000 | 651,000 | 54,250 | 570,000 | 47,500 | 81,000 | 6,750 |
| 375,000 | 4,500,000 | 756,000 | 63,000 | 657,000 | 54,750 | 99,000 | 8,250 |
| 400,000 | 4,800,000 | 861,000 | 71,750 | 744,000 | 62,000 | 117,000 | 9,750 |
| 425,000 | 5,100,000 | 966,000 | 80,500 | 831,000 | 69,250 | 135,000 | 11,250 |
| 450,000 | 5,400,000 | 1,071,000 | 89,250 | 918,000 | 76,500 | 153,000 | 12,750 |
| 475,000 | 5,700,000 | 1,176,000 | 98,000 | 1,008,000 | 84,000 | 168,000 | 14,000 |
| 500,000 | 6,000,000 | 1,281,000 | 106,750 | 1,104,000 | 92,000 | 177,000 | 14,750 |
| 525,000 | 6,300,000 | 1,386,000 | 115,500 | 1,200,000 | 100,000 | 186,000 | 15,500 |
| 550,000 | 6,600,000 | 1,491,000 | 124,250 | 1,296,000 | 108,000 | 195,000 | 16,250 |
| 575,000 | 6,900,000 | 1,596,000 | 133,000 | 1,392,000 | 116,000 | 204,000 | 17,000 |
| 600,000 | 7,200,000 | 1,701,000 | 141,750 | 1,494,000 | 124,500 | 207,000 | 17,250 |
| 625,000 | 7,500,000 | 1,806,000 | 150,500 | 1,599,000 | 133,250 | 207,000 | 17,250 |
| 650,000 | 7,800,000 | 1,911,000 | 159,250 | 1,704,000 | 142,000 | 207,000 | 17,250 |
| 675,000 | 8,100,000 | 2,016,000 | 168,000 | 1,809,000 | 150,750 | 207,000 | 17,250 |
| 700,000 | 8,400,000 | 2,121,000 | 176,750 | 1,914,000 | 159,500 | 207,000 | 17,250 |
| 725,000 | 8,700,000 | 2,226,000 | 185,500 | 2,019,000 | 168,250 | 207,000 | 17,250 |
| 750,000 | 9,000,000 | 2,331,000 | 194,250 | 2,124,000 | 177,000 | 207,000 | 17,250 |
| 775,000 | 9,300,000 | 2,436,000 | 203,000 | 2,229,000 | 185,750 | 207,000 | 17,250 |
| 800,000 | 9,600,000 | 2,541,000 | 211,750 | 2,334,000 | 194,500 | 207,000 | 17,250 |
| 825,000 | 9,900,000 | 2,646,000 | 220,500 | 2,439,000 | 203,250 | 207,000 | 17,250 |
Relief begins to emerge at the Rs 200,000 monthly income level, where annual tax is reduced from Rs 162,000 to Rs 156,000, translating into a modest annual saving of Rs 6,000 or Rs 500 per month. From this point onwards, the proposed structure shows a steady widening of tax relief as income increases, particularly across the Rs 225,000 to Rs 500,000 range.
In the Rs 225,000 to Rs 300,000 income brackets, annual relief rises from Rs 15,000 to Rs 50,000, reflecting a gradual easing of tax pressure. This trend accelerates in the mid-tier segment, with individuals earning Rs 350,000 to Rs 400,000 per month receiving annual tax reductions of Rs 81,000 and Rs 117,000 respectively, while those at Rs 450,000 and Rs 500,000 benefit from Rs 153,000 and Rs 177,000 in annual relief.
Beyond the Rs 600,000 monthly salary threshold, the relief structure stabilizes, with annual tax savings capped at Rs 207,000 and monthly relief fixed at Rs 17,250 across higher income levels up to Rs 825,000. This indicates a plateau effect in tax benefits despite rising income.
