Pakistan Salary Tax Slabs 2026-27, With Worked Examples
By Shah Zaib · Published · Updated
In short: For 2026-27 (tax year 2027, July 2026 - June 2027), salary up to Rs 600,000 a year is tax free; above that the rate rises from 1% to 35%, and 35% applies only above Rs 7,000,000, with no surcharge for salaried people.
If you are paid a salary in Pakistan, your employer deducts income tax every month before the money reaches your account. How much they take depends on the slab your yearly salary falls in. The Finance Act 2025 slabs ended on 30 June 2026. From 1 July 2026 the Finance Act 2026 slabs apply, for what FBR calls tax year 2027 (July 2026 - June 2027).
This guide shows the new slabs, walks through one salary by hand, and lists the monthly tax on common salaries. If you just want your own number, the salary tax calculator does it in a second and shows the change from last year.
Tax slabs for salaried individuals, tax year 2027
The slabs work on yearly taxable income, not monthly. Multiply your monthly salary by 12 first, then find the row it falls in.
| Annual taxable income | Tax |
|---|---|
| Up to Rs 600,000 | No tax |
| Rs 600,001 - Rs 1,200,000 | 1% of the amount above Rs 600,000 |
| Rs 1,200,001 - Rs 2,200,000 | Rs 6,000 + 11% of the amount above Rs 1,200,000 |
| Rs 2,200,001 - Rs 3,200,000 | Rs 116,000 + 20% of the amount above Rs 2,200,000 |
| Rs 3,200,001 - Rs 4,100,000 | Rs 316,000 + 25% of the amount above Rs 3,200,000 |
| Rs 4,100,001 - Rs 5,600,000 | Rs 541,000 + 29% of the amount above Rs 4,100,000 |
| Rs 5,600,001 - Rs 7,000,000 | Rs 976,000 + 32% of the amount above Rs 5,600,000 |
| Above Rs 7,000,000 | Rs 1,424,000 + 35% of the amount above Rs 7,000,000 |
Sources: Federal Board of Revenue, Finance Act 2026 (Gazette of Pakistan, 26 June 2026); Federal Board of Revenue, Withholding tax rate card, tax year 2027
How to read a slab, step by step
A common mistake is to think the whole salary is taxed at your slab's rate. It is not. Only the part above the slab's starting point is taxed at that rate. Everything below it is covered by the fixed amount, which is simply the total tax on all the lower slabs.
Take a monthly salary of Rs 200,000:
- Yearly income is Rs 200,000 × 12 = Rs 2,400,000.
- That falls in the row "Rs 2,200,001 - Rs 3,200,000".
- The amount above the slab start is Rs 2,400,000 - Rs 2,200,000 = Rs 200,000.
- Tax on that part is 20% of it, which is Rs 40,000.
- Add the fixed amount of Rs 116,000. Yearly tax is Rs 156,000.
- Divide by 12: about Rs 13,000 a month, leaving Rs 187,000.
Your effective rate, the share of the whole salary that goes in tax, is 6.5%, well below the 20% slab rate. Last year the same salary paid Rs 13,500 a month.
Monthly tax on common salaries
| Monthly salary | Monthly tax | Take-home | Effective rate | Change vs last year |
|---|---|---|---|---|
| Rs 100,000 | Rs 500 | Rs 99,500 | 0.5% | No change |
| Rs 150,000 | Rs 6,000 | Rs 144,000 | 4% | No change |
| Rs 200,000 | Rs 13,000 | Rs 187,000 | 6.5% | Rs 500 less a month |
| Rs 350,000 | Rs 47,500 | Rs 302,500 | 13.57% | Rs 6,750 less a month |
| Rs 500,000 | Rs 92,000 | Rs 408,000 | 18.4% | Rs 14,750 less a month |
Up to Rs 183,333 a month nothing changed. The relief starts in the next slab and grows with salary, because the rates in the middle and upper slabs came down.
What changed from last year
- The first three slabs are the same: no tax up to Rs 600,000, then 1%, then 11%.
- The Rs 2,200,001 - Rs 3,200,000 slab dropped from 23% to 20%, and the next one from 30% to 25%.
- Last year everything above Rs 4,100,000 was taxed at 35%. Now that range is split into 29%, 32%, 35% bands, so the top rate only starts above Rs 7,000,000.
- Last year salaried people with income above Rs 10,000,000 also paid a 9% surcharge on their tax. The FBR withholding rate card for tax year 2027 has no surcharge line for salary, so our calculator does not add one.
What counts as taxable salary
Taxable salary is usually your basic pay plus most allowances: house rent, utilities, conveyance and bonuses. A few items can be exempt or partly exempt, depending on your contract. Your payslip normally shows the taxable figure your employer uses, so that is the best number to put into the calculator.
If your salary changes during the year, for example after a raise in January, your employer recalculates the deduction for the remaining months so the full year comes out right. That is why the tax line on your payslip can jump after an increment.
Do you still need to file a return?
Yes, if your income is above the taxable limit, even though your employer already deducted the tax. Filing keeps you on the Active Taxpayer List, which lowers the tax taken on things like bank withdrawals, property and vehicle registration. The deadline for salaried people is usually 30 September, and FBR often extends it. If your employer deducted more than you owe, the return is also how you claim the refund.
Work out your own number
Open the Pakistan salary tax calculator, enter your monthly or yearly salary, and it shows your slab, monthly tax, take-home pay and the difference from last year. It runs in your browser, so your salary is not sent anywhere.
This guide explains the published slabs and is not tax advice. For deductions, exemptions or a disputed payslip, ask a tax adviser or check with FBR directly.