Budget FY 2025-26: How to calculate your income tax?
The government of Pakistan has introduced a new income tax structure for 2026, easing the tax burden on salaried individuals. The revised rates provide reductions in monthly and annual taxes across low, middle, and high-income brackets compared to the 2025 regime.
Key Points:
Lowest income bracket (PKR 50,000/month):
No tax in both 2025 and 2026. No change.
PKR 100,000/month (Annual: PKR 1.2 million):
Tax in 2025: PKR 30,000 annually
Tax in 2026: PKR 6,000 annually
Monthly saving: PKR 2,000
PKR 250,000/month (Annual: PKR 3 million):
Tax in 2025: PKR 380,000 annually
Tax in 2026: PKR 300,000 annually
Monthly saving: PKR 6,667
PKR 500,000/month (Annual: PKR 6 million):
Tax in 2025: PKR 1,365,000 annually
Tax in 2026: PKR 1,281,000 annually
Monthly saving: PKR 7,000
PKR 1 million/month (Annual: PKR 12 million):
Tax in 2025: PKR 3,911,000 annually
Tax in 2026: PKR 3,692,850 annually
Monthly saving: PKR 18,209
Highest income bracket (PKR 3 million/month, Annual: PKR 36 million):
Tax in 2025: PKR 13,051,500 annually
Tax in 2026: PKR 12,848,850 annually
Monthly saving: PKR 16,888
Across-the-board relief:
Tax savings range from PKR 2,000 to PKR 16,888 per month, depending on income level.
The revised 2026 income tax policy provides uniform relief to salaried taxpayers, reducing financial pressure in the face of persistent inflation. The cuts are expected to boost disposable income and ease the burden on Pakistan's middle and upper-middle class.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
8 hours ago
- Free Malaysia Today
Anwar hopes Rafizi, Nik Nazmi, reconsider decision to quit Cabinet
Prime Minister Anwar Ibrahim said he had only approved the leave of two ministers at this time. PETALING JAYA : Prime Minister Anwar Ibrahim says he hopes the two ministers who recently submitted their resignation letters will reconsider their decisions. In a Bernama report, Anwar said while he had received the leave applications and resignation letters from the duo, he had only approved their applications to go on leave. '…Let them think about it. Personally, I would prefer that they remain in the Cabinet,' he said. On May 28, economy minister Rafizi Ramli and natural resources and environmental sustainability minister Nik Nazmi Nik Ahmad submitted their resignation letters. The Prime Minister's Office (PMO) then issued a statement acknowledging their resignation letters but did not state if their resignations had been accepted. 'Any further decision on the matter will be informed later by the prime minister,' the statement read. Rafizi is on leave until June 16 while Nik Nazmi's leave ends on July 3. Nik Nazmi, a two-term MP, failed to defend his position as PKR vice-president at the party's divisional polls. He was Rafizi's running mate. Rafizi lost the PKR deputy president's post to Nurul Izzah Anwar. Anwar was speaking to reporters after attending an empowerment seminar and a closed-door meeting with PKR leaders in Melaka today. During the seminar, Anwar, who is also PKR president, called on party members to heal internal rifts and put aside dissatisfaction following its polls last month. He also stressed the need for unity and maturity in pursuit of the party's greater mission. 'Imagine this – I can work with Umno, even hugging it out,' he said. 'Surely we can move past our internal disagreements, too. Let's move on to the bigger agenda.'
The Sun
9 hours ago
- The Sun
Govt bears almost half a million Ringgit in cost for Tun Mahathir's trip to Nikkei Conference
MELAKA: The government bears almost half a million ringgit in cost for former Prime Minister Tun Dr Mahathir Mohamad's trip to Japan to attend the annual Nikkei conference last month, said Prime Minister Datuk Seri Anwar Ibrahim. Anwar said the government allocated approximately RM486,000 for the visit after receiving a formal application from Tun Dr Mahathir. 'There are existing provisions for former prime ministers to apply (for government support for official travel)...and if the sitting prime minister approves, the government will bear the cost, including for Tun Mahathir, who recently requested to attend the Nikkei conference in Japan. He applied, and I approved. I believe the delegation was around seven people. 'I have people asking me why pay for him. He is entitled to apply, but the decision rests with the sitting prime I decided to approve that RM486,000 for him to go to Japan. 'I just don't want anyone to misunderstand...I just don't want to take a negative attitude. Despite his daily criticisms of the government, we still approved his (travel) application,' Anwar told reporters here today. On May 30, Tun Dr Mahathir was reported to have attended and delivered a speech at the annual Nikkei Future of Asia conference, a platform he has regularly attended over the years. On separate development, Anwar said he is giving time to two Cabinet ministers who recently submitted resignation letters, encouraging them to reconsider their decisions. The Prime Minister said he received the letters from the two ministers applying for leave and resignation, but he had only approved the leave for now. '...Let them think about it. Personally, I would prefer that they rejoin the Cabinet,' he said. The ministers in question - Economy Minister Rafizi Ramli and Minister of Natural Resources and Environmental Sustainability Nik Nazmi Nik Ahmad - reportedly submitted their resignations following defeats in recent party elections. The Prime Minister was met after attending an organisational empowerment seminar and a closed-door meeting with PKR leaders here today. Also present were two PKR vice-presidents - Datuk Seri Amirudin Shari and Datuk Seri R. Ramanan -, secretary-general Senator Fuziah Salleh, Wanita chief Fadhlina Sidek, Youth chief Muhammad Kamil Abdul Munim and Hang Tuah Jaya division chief Datuk Seri Shamsul Iskandar Mohd Akin. During the seminar, Anwar called on PKR members to heal internal rifts and put aside dissatisfaction following the party polls last month. He also stressed the need for unity and maturity for the party's greater mission. 'Imagine this - I can work with UMNO, even hugging it out. Surely we can move past our internal disagreements too. Let's move on for the bigger agenda,' he added.
The Sun
9 hours ago
- The Sun
Govt bears cost for Tun Mahathir's trip to Nikkei Conference
MELAKA: The government bears almost half a million ringgit in cost for former Prime Minister Tun Dr Mahathir Mohamad's trip to Japan to attend the annual Nikkei conference last month, said Prime Minister Datuk Seri Anwar Ibrahim. Anwar said the government allocated approximately RM486,000 for the visit after receiving a formal application from Tun Dr Mahathir. 'There are existing provisions for former prime ministers to apply (for government support for official travel)...and if the sitting prime minister approves, the government will bear the cost, including for Tun Mahathir, who recently requested to attend the Nikkei conference in Japan. He applied, and I approved. I believe the delegation was around seven people. 'I have people asking me why pay for him. He is entitled to apply, but the decision rests with the sitting prime I decided to approve that RM486,000 for him to go to Japan. 'I just don't want anyone to misunderstand...I just don't want to take a negative attitude. Despite his daily criticisms of the government, we still approved his (travel) application,' Anwar told reporters here today. On May 30, Tun Dr Mahathir was reported to have attended and delivered a speech at the annual Nikkei Future of Asia conference, a platform he has regularly attended over the years. On separate development, Anwar said he is giving time to two Cabinet ministers who recently submitted resignation letters, encouraging them to reconsider their decisions. The Prime Minister said he received the letters from the two ministers applying for leave and resignation, but he had only approved the leave for now. '...Let them think about it. Personally, I would prefer that they rejoin the Cabinet,' he said. The ministers in question - Economy Minister Rafizi Ramli and Minister of Natural Resources and Environmental Sustainability Nik Nazmi Nik Ahmad - reportedly submitted their resignations following defeats in recent party elections. The Prime Minister was met after attending an organisational empowerment seminar and a closed-door meeting with PKR leaders here today. Also present were two PKR vice-presidents - Datuk Seri Amirudin Shari and Datuk Seri R. Ramanan -, secretary-general Senator Fuziah Salleh, Wanita chief Fadhlina Sidek, Youth chief Muhammad Kamil Abdul Munim and Hang Tuah Jaya division chief Datuk Seri Shamsul Iskandar Mohd Akin. During the seminar, Anwar called on PKR members to heal internal rifts and put aside dissatisfaction following the party polls last month. He also stressed the need for unity and maturity for the party's greater mission. 'Imagine this - I can work with UMNO, even hugging it out. Surely we can move past our internal disagreements too. Let's move on for the bigger agenda,' he added.
