Pakistan’s salaried employees contributed Rs420 billion in income tax during July–March FY2025–26, according to provisional Federal Board of Revenue data reported in April 2026. Property-related withholding collections were reported at Rs197 billion over the same period.
Full-year update
Later provisional reporting placed salaried income-tax collection at approximately Rs633 billion for the full FY2025–26. This newer figure does not replace the nine-month comparison below; it extends the reporting period from nine months to the complete fiscal year.
Key takeaways
- Salaried income-tax collection increased by Rs29 billion, or about 7.5%, compared with the corresponding nine months of FY2024–25.
- The reported Rs420 billion was roughly 2.13 times the Rs197 billion collected through the cited property-related withholding heads.
- Tax under Section 149 is deducted from salary by employers, making salaried income comparatively visible to the tax system.
- Most of the cited property collection came from advance withholding on sales and purchases, not solely from tax on capital gains.
What the nine-month figures show
Provisional data reported for July 2025 through March 2026 showed Rs420 billion collected from salaried individuals, compared with Rs391 billion during the same period a year earlier. The increase was Rs29 billion.
| Reported category | July–March FY2025–26 | Comparison / change |
|---|---|---|
| Salaried individuals—total | Rs420bn | Rs391bn a year earlier; up 7.5% |
| Non-corporate employees | Rs187bn | Up 12% |
| Corporate-sector employees | Rs134bn | Up 15% |
| Provincial-government employees | Rs59bn | Down 14% |
| Federal-government employees | Rs41bn | Up 7% |
| Property-related withholding—reported total | Rs197bn | Up 17% |
| Section 236C—property sales | Rs137bn | Up 62% |
| Section 236K—property purchases | Rs61bn | Down 16% |
| Capital gains on property | Rs1.7bn | Rs5bn a year earlier |
| Section 7E deemed-income collection | Rs1.2bn | Reported nine-month amount |
Figures are reproduced from provisional FBR data reported by The Express Tribune. Rounded subcategories may not add exactly to a displayed total.
Important comparison note
The Rs420 billion and Rs197 billion figures are useful indicators, but they are not a complete like-for-like measure of the two sectors’ total economic contribution. Salary tax is collected under the income-tax system, while much of the property figure represents advance withholding on transactions under Sections 236C and 236K. These amounts should not be interpreted as a full calculation of all taxes borne by employees or all taxes connected with real estate.
Why salary tax is collected efficiently
Employers generally deduct income tax from salary under Section 149 of the Income Tax Ordinance. The deduction-at-source mechanism gives the tax authority a documented payment trail and reduces the opportunity for salary income to remain outside the system.
This does not mean every employee has the same tax burden. Liability depends on taxable salary, exemptions, deductions, tax credits, other income and the law applicable to the relevant tax year. The Finance Act 2025 changed salary rates for FY2025–26 and reduced the surcharge applicable to qualifying high-income salaried individuals.
What makes up the property figure?
The reported property collection was dominated by withholding at the time of transfer:
- Section 236C: advance tax collected from a seller or transferor.
- Section 236K: advance tax collected from a buyer or transferee.
- Capital gains tax: tax determined separately on a taxable gain, subject to the applicable acquisition date, cost, holding period and legal regime.
- Section 7E: a deemed-income provision applicable during the period covered by the original report. It was later omitted by the Finance Act 2026 for the subsequent legal period.
Because Sections 236C and 236K are advance collections, they should not automatically be treated as final tax or added to capital-gains tax without considering adjustment and the taxpayer’s final assessment.
What the comparison means for taxpayers
The figures illustrate how strongly Pakistan’s revenue system relies on withholding mechanisms. Salary deductions are collected throughout the year through payroll, while property collections rise or fall with transaction volumes, valuations, taxpayer status and applicable rates.
For an individual taxpayer, the national collection totals do not determine personal liability. Employees should reconcile their annual salary certificate, employer deductions and FBR records before filing. Property buyers and sellers should separately confirm the applicable official valuation, ATL status, advance tax and capital-gains treatment.
Estimate your salary tax
Use TaxToday’s independent calculator to estimate salary tax for the applicable year. The result is educational and should be checked against official records before filing.
Open the Pakistan Income Tax CalculatorBuying or selling property? Review the separate Pakistan Property Tax Calculator for an estimate of Sections 236K and 236C, capital gains and editable provincial charges.
Frequently asked questions
How much income tax did salaried employees pay in the first nine months of FY2025–26?
Provisional data reported in April 2026 placed the July–March collection at Rs420 billion, up from Rs391 billion in the corresponding period of FY2024–25.
Did salaried employees pay twice as much tax as the entire property sector?
The reported Rs420 billion was more than twice the Rs197 billion property-related withholding total used in the comparison. However, the figures cover different collection mechanisms and should not be described as a complete accounting of every tax paid by either group.
Are Sections 236C and 236K the same as capital gains tax?
No. Sections 236C and 236K generally collect advance tax at the time of a property transfer. Capital-gains liability is calculated separately under the rules applicable to the asset and transaction.
Was the Rs420 billion figure final?
No. It was described as provisional and covered nine months. Later provisional reporting placed the full-year FY2025–26 salary-tax collection at about Rs633 billion.
Sources and methodology
This article distinguishes reported provisional collections from TaxToday analysis. Primary legal sources are used for explanations of the applicable provisions; media reports are identified where FBR’s category-level provisional dataset was not published as a standalone public table.
- The Express Tribune—Salaried class pays Rs420b (14 April 2026; provisional FBR figures).
- Federal Board of Revenue—Finance Act 2025 resources.
- FBR Circular No. 1 of 2025–26—Income-tax amendments.
- FBR—Revenue collection publications.
- Geo News—full-year provisional salary-tax update (July 2026).
Editorial and financial disclaimer
TaxToday.pk is an independent information platform and is not affiliated with or endorsed by FBR. This article provides general educational information, not personalised tax, legal or investment advice. Provisional collections and tax law can be revised. Consult official FBR material or a qualified tax professional before making a filing or transaction decision.