Pakistan’s federal budget for 2026-27 introduces tax cuts for salaried individuals, a rare occurrence in recent years. The finance minister announced reduced income tax rates for those earning between Rs2.2 million and Rs7 million annually. The number of income tax slabs has been increased from six to eight, and the surcharge on incomes exceeding Rs10 million has been eliminated. The most significant relief is targeted towards middle and upper-income earners, with rates decreasing in several brackets. Individuals earning up to approximately Rs183,000 per month will not experience any tax changes, as the lower income slabs remain unchanged. A new income tax calculator has been provided by Dawn to help individuals determine the impact of these changes on their take-home pay.