Salary tax slabs for 2026-27 at a glance
Budget 2026-27 kept the Rs 600,000 exemption and the 1% and 11% bands, but cut the rates for the middle brackets and added a new 32% band. The biggest relief goes to people earning between Rs 2.2 million and Rs 5.6 million a year:
| Annual salary | 2025-26 rate | 2026-27 rate |
|---|---|---|
| Up to Rs 600,000 | 0% | 0% |
| Rs 600,001 – 1,200,000 | 1% | 1% |
| Rs 1,200,001 – 2,200,000 | 11% | 11% |
| Rs 2,200,001 – 3,200,000 | 23% | 20% |
| Rs 3,200,001 – 4,100,000 | 30% | 25% |
| Rs 4,100,001 – 5,600,000 | 35% | 29% |
| Rs 5,600,001 – 7,000,000 | 35% | 32% |
| Above Rs 7,000,000 | 35% | 35% |
Rates are marginal: each percentage only applies to the part of your income inside that band, plus the fixed amount for the bands below. Moving into a higher slab never reduces your take-home pay.
How salary tax is calculated – worked example
Suppose your gross taxable salary is Rs 250,000 a month.
- Annual salary = 250,000 × 12 = Rs 3,000,000.
- This falls in the Rs 2,200,001 – 3,200,000 band: fixed Rs 116,000 + 20% of the amount above Rs 2,200,000.
- Amount above the band start = 3,000,000 − 2,200,000 = Rs 800,000; 20% of that = Rs 160,000.
- Annual tax = 116,000 + 160,000 = Rs 276,000, or Rs 23,000 per month.
- Monthly take-home ≈ 250,000 − 23,000 = Rs 227,000.
Under last year's 23% rate the same salary paid Rs 300,000 a year, so the new slabs save this person Rs 24,000 a year.
Tips to make sure the right amount is deducted
- Be on the Active Taxpayer List (ATL). Filing your return keeps withholding taxes on banking, property and vehicles at the lower filer rates.
- Tell your employer about other income and tax credits. Employers spread your annual tax over the remaining months, so changes mid-year can push deductions up or down.
- Claim credits in your return. Donations to approved institutions, investment in approved pension funds, and certain health insurance premiums can reduce tax payable. The calculator does not include these credits.
- Keep your salary certificate. At year end, compare the tax deducted on your certificate with the result here; any excess can be claimed as a refund when you file through FBR IRIS.
Looking for a specific salary? See the monthly salary tax table (e.g. tax on Rs 100,000, Rs 200,000). Not salaried? Use the business & freelancer income tax calculator. Want the full background? Read our guide how salary tax works in Pakistan.
These figures follow the slabs widely reported for the Finance Act 2026. They are estimates for planning; FBR may change rates through later notifications, so confirm on fbr.gov.pk or with a tax adviser before filing.
Frequently asked questions
What is the tax-free salary limit in Pakistan for 2026-27?
Annual taxable salary up to Rs 600,000 (Rs 50,000 a month) is not taxed. Between Rs 600,001 and Rs 1,200,000 the rate is only 1% of the amount above Rs 600,000.
How much tax is deducted on a salary of Rs 100,000 per month?
Rs 100,000 a month is Rs 1,200,000 a year. Tax is 1% of the Rs 600,000 above the exempt limit, i.e. Rs 6,000 a year or Rs 500 a month, so take-home is about Rs 99,500.
Is there still a surcharge on high salaries?
According to the Budget 2026-27 changes reported for tax year 2027, the 9% surcharge on salaried income above Rs 10 million has been removed. Non-salaried individuals still pay a 10% surcharge above Rs 10 million.
Which tax year is FY 2026-27?
Income earned from 1 July 2026 to 30 June 2027 is tax year 2027. The return for it is filed after 30 June 2027.
When does a person count as salaried for these rates?
The salaried slabs apply when salary is more than 75% of your total taxable income. If business or other income is a larger share, the non-salaried rates apply to you instead.
Does this calculator include medical allowance and provident fund?
Enter only your taxable salary. Medical allowance up to 10% of basic pay (where no free medical facility is given) and employer contributions to an approved provident fund within limits are usually exempt, so leave them out.
Last reviewed: October 2026