Here’s How Much ‘Tax Relief’ Govt Has Given to Salaried Class Compared to Last Year

The new income tax slabs for the salaried class under the federal budget 2025-26 have reduced taxes on cumulative payouts for salaries over Rs. 600,000 per annum. Under the outgoing budget for 2024-25, individuals earning over Rs. 600,000 annually were subject to a significantly higher tax structure. For example, income between Rs. 600,00 and Rs. 1,200,000 was taxed at 5 percent. But under the new regime, this rate has been slashed to just 1 percent. Similarly, those earning between Rs. 1,200,001 and Rs. 2,200,000 were previously taxed Rs. 30,000 plus 15 percent of the amount exceeding Rs. 1,200,000. Under the new rates, this has been reduced to Rs. 6,000 plus 11 percent. The following table gives a detailed breakdown of the impact of the rate of income tax on salaried class from July 1, 2025: