Salaried Pakistanis Paid Rs 630 Billion Income Tax in FY2025-26

Pakistan’s salaried class shouldered a striking tax burden last year. According to recent figures, salaried workers paid an estimated Rs 630 billion in income tax during FY2025-26 — about 127% more than the entire real-estate sector’s contribution. Here is what the numbers say and why they matter.

The headline numbers

• Rs 630 billion — estimated income tax paid by salaried individuals in FY2025-26.
• 127% more than the real-estate sector’s tax contribution.
• Salaried tax is deducted at source, so compliance is near-automatic.

Why the salaried class pays so much

Because salaried income is taxed at source by employers, the salaried segment is one of the most heavily and reliably taxed groups in the country — with little room to defer or under-report. That is why, despite being a relatively small share of the workforce, salaried workers contribute an outsized amount of direct tax.

The real-estate comparison

The gap has reignited debate about broadening the tax base. For property, 2026 actually brought relief — lower transaction taxes for filers, the abolition of the Federal Excise Duty, and the removal of Section 7E — which keeps real estate a comparatively tax-efficient store of value for documented investors. For the full picture, see our property transaction taxes guide and the breakdown of the FED abolition and CGT changes.

What it means for you

• Salaried earners: plan around after-tax income; tax-efficient assets matter more than ever.
• Investors: property remains relatively tax-favoured for filers — but always transact as an active filer.
• Everyone: being on the ATL lowers property transaction taxes significantly.

Frequently Asked Questions

How much income tax did salaried Pakistanis pay in FY2025-26?

An estimated Rs 630 billion — reportedly around 127% more than the real-estate sector’s contribution.

Why does the salaried class pay more tax?

Salaried income is deducted at source by employers, making it one of the most reliably taxed segments, with little scope to defer or under-report.

Is property still tax-efficient in 2026?

For active filers, yes — 2026 brought lower transaction taxes, the abolition of the property FED, and the removal of Section 7E. Confirm current rates with the FBR before transacting.