Income tax slabs for salaried people, 2026-27
These rates apply to salary income in tax year 2027, which runs from 1 July 2026 to 30 June 2027. They are the salaried slabs under the Finance Act, 2026.
| Annual taxable salary (Rs) | Monthly salary (approx.) | Tax |
|---|---|---|
| Up to 600,000 | Up to 50,000 | Nil |
| 600,001 – 1,200,000 | 50,001 – 100,000 | 1% of amount above 600,000 |
| 1,200,001 – 2,200,000 | 100,001 – 183,333 | Rs 6,000 + 11% above 1,200,000 |
| 2,200,001 – 3,200,000 | 183,334 – 266,667 | Rs 116,000 + 20% above 2,200,000 |
| 3,200,001 – 4,100,000 | 266,668 – 341,667 | Rs 316,000 + 25% above 3,200,000 |
| 4,100,001 – 5,600,000 | 341,668 – 466,667 | Rs 541,000 + 29% above 4,100,000 |
| 5,600,001 – 7,000,000 | 466,668 – 583,333 | Rs 976,000 + 32% above 5,600,000 |
| Above 7,000,000 | Above 583,333 | Rs 1,424,000 + 35% above 7,000,000 |
Reported summaries of the Finance Act, 2026 also state that the surcharge on high salary income has been withdrawn for salaried individuals, so the calculator does not add one. For the official text and any later changes, check the Federal Board of Revenue (FBR).
How salary tax is calculated
Pakistan uses a slab system. You do not pay the highest rate on your whole salary, only on the part that falls inside each band. The steps are:
- Find your annual taxable salary. Multiply monthly taxable salary by 12, or add up your actual yearly salary.
- Find your slab in the table above.
- Apply the formula: fixed amount + rate × (salary − lower limit of the slab).
- Divide by 12 for the usual monthly deduction.
Worked examples
| Monthly salary | Annual salary | Annual tax | Monthly tax | Monthly take-home |
|---|
Example: on Rs 150,000 a month, annual salary is Rs 1,800,000. That falls in the third slab, so tax is Rs 6,000 + 11% × (1,800,000 − 1,200,000) = Rs 72,000 a year, or Rs 6,000 a month.
Net to gross: finding the salary behind a take-home figure
Job offers are sometimes discussed as take-home pay. Switch the calculator to Net to gross, enter the take-home amount, and it finds the gross taxable salary that leaves you with that amount after tax. This helps when you are negotiating, or checking whether an offer letter's gross figure matches what you were told.
Things that change your actual deduction
- Exempt allowances. Only taxable salary counts. Ask HR which parts of your package are exempt.
- Bonuses and arrears. Employers usually spread tax across the remaining months of the tax year, so the deduction can rise after a bonus.
- Tax credits. Approved donations, pension fund contributions and some investments can reduce tax when claimed in your return.
- Mid-year joining. If you start a job in, say, January, your yearly income is lower, so your actual tax for the year may be lower than the monthly estimate suggests.
Filing your return keeps you on the Active Taxpayers List, which lowers withholding tax on many other transactions, including property. See our property transfer tax calculator to compare filer and non-filer rates.
Frequently asked questions
What is the tax-free salary limit in Pakistan for 2026-27?
Annual taxable salary up to Rs 600,000, which is Rs 50,000 a month, is not taxed.
How much tax is deducted on a salary of Rs 100,000 per month?
Annual salary is Rs 1,200,000, so tax is 1% of Rs 600,000 = Rs 6,000 a year, or Rs 500 a month.
How much tax is deducted on a salary of Rs 200,000 per month?
Annual salary is Rs 2,400,000. Tax is Rs 116,000 + 20% × 200,000 = Rs 156,000 a year, or Rs 13,000 a month.
Does this calculator include the surcharge?
No. Reported summaries of the Finance Act, 2026 state that the surcharge for salaried individuals was withdrawn for tax year 2027.
Is the tax year the same as the calendar year?
No. Pakistan's tax year 2027 runs from 1 July 2026 to 30 June 2027.
Are my salary details saved?
No. All calculations happen in your browser and nothing is stored.