Budget 2025-26: Govt Gives Income Tax ‘Relief’ to Salaried Class

The new income tax slabs for the salaried class under the federal budget 2025-26 revealed that a smaller rate of income tax would now be applicable from July 1, 2025, where annual taxable income exceeds Rs. 600,000, high-level sources informed ProPakistani. In the new federal budget 2025-26, where taxable income is between Rs. 600,000 but does not exceed Rs. 1,200,000, the rate of tax would be 1 percent. For individuals earning up to Rs. 600,000, there is no change, as this bracket remains tax-free. This exemption ensures that the lower-income segment is not burdened with additional taxes. In the income range of Rs. 1,200,000 to Rs. 2,200,000, the tax rate has been decreased to 11 percent of the amount exceeding Rs. 1,200,000.   The following table gives a detailed breakdown of the impact of the rate of income tax on salaried class from July 1, 2025: