Islamabad (HRNW)- The federal government has introduced revised income tax slabs for government employees and the salaried class under the Finance Bill 2026, which will come into effect from July 1, 2026.
The National Assembly has approved the Finance Bill 2026, setting new tax rates for individuals across various income brackets.
According to the approved tax structure, individuals earning up to Rs600,000 annually will remain completely exempt from income tax. Those with annual incomes between Rs600,000 and Rs1.2 million will be subject to a 1 percent income tax rate.
Under the new tax regime, individuals earning between Rs1.2 million and Rs2.2 million annually will pay a fixed tax of Rs6,000, in addition to 11 percent tax on the amount exceeding Rs1.2 million.
Similarly, taxpayers with annual incomes ranging from Rs2.2 million to Rs3.2 million will be required to pay a fixed tax of Rs116,000 plus 20 percent tax on the additional amount, compared to the previous rate of 23 percent on the excess income.
The revised tax structure is aimed at adjusting the tax burden across different income groups and is expected to impact millions of salaried individuals across the country from the start of the new fiscal year.
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