In the Budget 2026-27 presented in the National Assembly, Finance Minister Muhammad Aurangzeb announced significant relief measures for the salaried class, including a major reduction in income tax rates across multiple income slabs.
The government said the revised structure has been introduced to provide relief to taxpayers amid persistent inflationary pressures and rising cost of living.
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Revised Income Tax Slabs for Salaried Class (Budget 2026-27)
- Rs 2.2 million – 3.2 million annual income: Tax reduced from 23 percent to 20 percent
- Rs 3.2 million – 4.1 million annual income: Tax reduced from 30percent to 25 percent
- Rs 4.1 million – 5.6 million annual income: Tax reduced from 35 percent to 29 percent
- Rs 5.6 million – 7.0 million annual income: Tax reduced from 35 percent to 32 percent
Officials said the revised tax slabs are part of a broader fiscal adjustment strategy aimed at easing pressure on the salaried class, which has been among the most affected segments due to inflation and rising utility costs.
The changes are expected to increase disposable income for middle-income earners, while also improving tax compliance through a more rationalized structure.
The announcement was made during the federal budget presentation in the National Assembly.
