The federal government has proposed tax relief for the salaried class by reducing income tax rates across four annual income slabs in Budget 2026-27.
According to the budget speech, the government said it was fulfilling its promise to provide relief to the middle and salaried segments. The relief will apply to salaried individuals earning between Rs. 2.2 million and Rs. 7 million annually.
| Annual Salary Slab | Existing Tax Rate | Proposed Tax Rate | Reduction |
| Rs. 2.2 million to Rs. 3.2 million | 23% | 20% | 3% |
| Rs. 3.2 million to Rs. 4.1 million | 30% | 25% | 5% |
| Rs. 4.1 million to Rs. 5.6 million | 35% | 29% | 6% |
| Rs. 5.6 million to Rs. 7 million | 35% | 32% | 3% |
The government has also proposed abolishing the surcharge imposed on salaried taxpayers. The budget speech said the surcharge had long been a concern for the salaried class.
Last year, the surcharge rate was reduced from 10% to 9%. The government has now proposed removing it completely.
The budget speech also proposed relief in super tax for businesses. The government said super tax rates for businesses earning between Rs. 150 million and Rs. 500 million would be reduced by one percentage point in each slab.
The document further mentions a proposed reduction in super tax for income above Rs. 500 million, but the complete rate is not visible in the image provided.
