The government has announced significant tax relief for salaried individuals under the Budget 2026–27, reducing income tax rates across all major salary brackets to ease inflationary pressure on households.

Under the proposed changes, tax rates for salaried earners have been lowered as follows:

• Annual income PKR 600,000–1.2 million: reduced from 5% to 1%
• PKR 1.2 million–2.2 million: reduced from 15% to 11%
• PKR 2.2 million–3.2 million: reduced from 25% to 23%
• PKR 3.2 million–4.1 million: reduced from 30% to 29%
• PKR 4.1 million–5.6 million: reduced from 35% to 32%

Officials said the revised structure is aimed at providing meaningful relief to the salaried class while maintaining overall fiscal discipline.