Pakistan slabs reflect Tax Year 2027 (FY 2026-27) rates under the Finance Act 2026, last verified September 2026 against FBR's published Finance Act text. FBR revises these in each year's Finance Act, always confirm current rates on FBR's official site before filing. This tool gives an estimate only and isn't tax advice.
🧮 Income Tax Calculator Tool
Enter your annual income to calculate your tax liability under Pakistan's salaried tax slabs or a custom flat rate.
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How Much Tax Is Deducted From Salary in Pakistan in 2026-27?
For Tax Year 2027 (July 2026 to June 2027), salary up to Rs 600,000 a year is tax-free. Above that, FBR's eight slabs charge 1% to 35% on each portion of income. On a Rs 100,000 monthly salary the tax is Rs 500 a month; on Rs 150,000 it is Rs 6,000 a month.
How to Use the Income Tax Calculator
- Keep Pakistan selected to use the Tax Year 2027 salaried slabs.
- Enter your annual taxable salary. For a monthly salary, multiply by 12 (Rs 150,000 × 12 = Rs 1,800,000).
- Read your annual tax, monthly tax, effective rate and net annual income, plus the slab-by-slab breakdown.
- Outside Pakistan? Switch to Custom Flat Rate and enter your own rate.
Salary Tax Slabs 2026-27 (Tax Year 2027)
| Annual taxable income (PKR) | Tax |
|---|---|
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 1% of the amount above 600,000 |
| 1,200,001 – 2,200,000 | Rs 6,000 + 11% of the amount above 1,200,000 |
| 2,200,001 – 3,200,000 | Rs 116,000 + 20% of the amount above 2,200,000 |
| 3,200,001 – 4,100,000 | Rs 316,000 + 25% of the amount above 3,200,000 |
| 4,100,001 – 5,600,000 | Rs 541,000 + 29% of the amount above 4,100,000 |
| 5,600,001 – 7,000,000 | Rs 976,000 + 32% of the amount above 5,600,000 |
| Above 7,000,000 | Rs 1,424,000 + 35% of the amount above 7,000,000 |
The Finance Act 2026 moved the salaried schedule from six slabs to eight, raised the point where the top 35% rate starts from Rs 4.1 million to Rs 7 million, and abolished the 9% surcharge on high earners. Slabs change in every June budget, so check FBR's latest notification before filing.
Monthly Tax on Salary: Quick Table (2026-27)
| Monthly salary (PKR) | Annual tax | Monthly tax | Effective rate | Monthly salary after tax |
|---|---|---|---|---|
| 50,000 | 0 | 0 | 0.0% | 50,000 |
| 75,000 | 3,000 | 250 | 0.3% | 74,750 |
| 100,000 | 6,000 | 500 | 0.5% | 99,500 |
| 125,000 | 39,000 | 3,250 | 2.6% | 121,750 |
| 150,000 | 72,000 | 6,000 | 4.0% | 144,000 |
| 200,000 | 156,000 | 13,000 | 6.5% | 187,000 |
| 250,000 | 276,000 | 23,000 | 9.2% | 227,000 |
| 300,000 | 416,000 | 34,667 | 11.6% | 265,333 |
| 400,000 | 744,000 | 62,000 | 15.5% | 338,000 |
| 500,000 | 1,104,000 | 92,000 | 18.4% | 408,000 |
| 700,000 | 1,914,000 | 159,500 | 22.8% | 540,500 |
These figures cover income tax only. Provident fund and EOBI come off as well; see your full net pay with the take-home salary calculator for Pakistan.
How Salary Tax Is Calculated: Worked Example
Take a monthly salary of Rs 150,000, which is Rs 1,800,000 a year:
- First Rs 600,000: tax-free → Rs 0
- Next Rs 600,000 (to 1,200,000) at 1% → Rs 6,000
- Remaining Rs 600,000 (to 1,800,000) at 11% → Rs 66,000
Total tax: Rs 72,000 a year, or Rs 6,000 a month, an effective rate of 4.0%. Only the portion of income inside each slab is taxed at that slab's rate. Crossing a threshold never raises the tax on the rest of your salary.
Marginal Rate vs Effective Rate
Your marginal rate is the rate on your last rupee (11% in the example). Your effective rate is total tax divided by total income (4.0%). The effective rate is the better measure of what you actually pay.
Who These Slabs Apply To
These are the rates for salaried individuals, meaning people whose salary makes up most of their taxable income. Business individuals, freelancers and associations of persons (AOPs) use a separate, generally higher schedule under the Income Tax Ordinance. If most of your income is from a business or freelancing, use that schedule or ask a tax adviser.
Common Mistakes
- Entering a monthly salary as annual. The tool expects yearly income; multiply monthly pay by 12 (and add any bonus).
- Thinking a raise can lower take-home pay. Only the extra income in the higher slab is taxed at the higher rate.
- Using last year's slabs. Many online tables still show Tax Year 2026 rates.
- Forgetting the bonus month. A bonus is added to annual income, so more tax is withheld in the month it's paid.
Related: plan what's left with the monthly budget calculator, estimate your end-of-service gratuity, or browse the financial calculators hub.
How the Income Tax Calculator Saves You Time
Applying eight tax slabs by hand means calculating the tax on each portion of income and adding them up. The calculator applies the current slabs instantly and shows monthly and yearly tax.
Frequently Asked Questions
What are the salary tax slabs for 2026-27 in Pakistan?
How much tax is deducted from a Rs 100,000 salary in Pakistan?
Is a salary of Rs 50,000 a month taxable in Pakistan?
How is tax calculated on a bonus in Pakistan?
Do the income tax slabs change every year?
Is the 9% surcharge still charged on high salaries?
Does this calculator work for freelancers or business income?
Last updated: September 2026