Written by Hamza Shahnawaz in Taxation New income tax slabs effective from July 1, 2026, include lower rates for salaried individuals and tax relief for pensioners ISLAMABAD: The Federal Board of Revenue (FBR) has notified the income tax rates applicable to salaried individuals for Tax Year 2027, effective from July 1, 2026, following the release of the updated Income Tax Ordinance, 2001, incorporating amendments made up to June 30, 2026. The revised tax rates apply to individuals whose income chargeable under the head “Salary” constitutes more than 75% of their total taxable income. The updated tax slabs reflect the amendments introduced through the Finance Act, 2026, and will be used to determine the annual income tax liability of salaried taxpayers during Tax Year 2027. Salary tax rates for Tax Year 2027 The applicable income tax rates are as follows: Annual Taxable Income Tax Payable Up to Rs600,000 Nil Exceeds Rs600,000 but does not exceed Rs1,200,000 1% of the amount exceeding Rs600,000 Exceeds Rs1,200,000 but does not exceed Rs2,200,000 Rs6,000 + 11% of the amount exceeding Rs1,200,000 Exceeds Rs2,200,000 but does not exceed Rs3,200,000 Rs116,000 + 20% of the amount exceeding Rs2,200,000 Exceeds Rs3,200,000 but does not exceed Rs4,100,000 Rs316,000 + 25% of the amount exceeding Rs3,200,000 Exceeds Rs4,100,000 but does not exceed Rs5,600,000 Rs541,000 + 29% of the amount exceeding Rs4,100,000 Exceeds Rs5,600,000 but does not exceed Rs7,000,000 Rs976,000 + 32% of the amount exceeding Rs5,600,000 Exceeds Rs7,000,000 Rs1,424,000 + 35% of the amount exceeding…