Income Tax Calculator Pakistan 2026-27

Enter your monthly or yearly salary to get your income tax under the 2026-27 salaried slabs (tax year 2027, Finance Act 2026): tax per month and per year, take-home pay, your effective rate, the slab you fall in and how much you save compared with 2025-26. Salary up to Rs 600,000 a year is tax-free.

Free, no signupNo daily limitRuns in your browser - nothing you enter is uploadedUpdated 19 October 2026

Your taxable salary (Rs)

Per

Tax year

-Tax for the year

-Take-home a month (after income tax)

-Effective tax rate

-Rate on your next rupee

Salary tax slabs

Annual taxable salary (Rs)	Tax

Key facts

Tax-free salary in 2026-27: Rs 600,000 a year (Rs 50,000 a month)
Top rate: 35% on salary above Rs 7,000,000 a year
Tax year 2027: 1 July 2026 to 30 June 2027
Who these rates apply to: People whose salary is more than 75% of their taxable income
Rs 100,000 a month: Rs 500 tax a month
Rs 300,000 a month: Rs 34,666.67 tax a month (was Rs 38,833.33 in 2025-26)

Checked 19 October 2026. Sources are listed further down this page.

Worked example: Rs 300,000 a month in 2026-27

annual salary = 300,000 × 12 = 3,600,000 slab = 3,200,001 to 4,100,000 tax = 316,000 + 25% × (3,600,000 − 3,200,000) = 316,000 + 100,000 = 416,000 a year monthly tax = 416,000 ÷ 12 = 34,666.67 effective rate = 416,000 ÷ 3,600,000 = 11.56%

In 2025-26 the same salary paid 346,000 + 30% × 400,000 = 466,000, so the 2026-27 slabs save this person Rs 50,000 a year.

How salary tax works in Pakistan

Salary tax is progressive by slab: each slab has a fixed amount, which is the full tax on all the slabs below it, plus a percentage of the part of your salary inside that slab. You never pay the higher rate on the whole salary - only on the rupees above the slab's starting point.

These salaried rates apply when salary is more than 75% of your taxable income. If most of your income is from business or other sources, the non-salaried rates apply instead, and they are higher.

Your employer deducts the tax every month (withholding) and you file an annual return with FBR. Being on the Active Taxpayers List (a "filer") affects other withholding taxes, such as on banking and property, but not these salary slabs.

What changed in the 2026-27 budget

The Finance Act 2026 kept the tax-free limit at Rs 600,000 a year (Rs 50,000 a month) and cut the rate in four middle slabs: 23% became 20%, 30% became 25%, a new 29% band starts at Rs 4.1 million, a new 32% band at Rs 5.6 million, and the 35% top rate now starts at Rs 7 million instead of Rs 4.1 million.

Monthly salary	Monthly tax 2025-26	Monthly tax 2026-27	Saving a year
Rs 50,000	0	0	0
Rs 100,000	500	500	0
Rs 150,000	6,000	6,000	0
Rs 200,000	13,500	13,000	6,000
Rs 300,000	38,833.33	34,666.67	50,000
Rs 500,000	106,750	92,000	177,000
Rs 1,000,000	307,107.50	264,500	511,290

2025-26 figures include the 9% surcharge that applied to salaried income above Rs 10 million a year (only the Rs 1,000,000 row is affected).

Frequently asked questions

How much tax is deducted from a salary of Rs 100,000 a month in 2026-27?

Rs 500 a month. Rs 100,000 a month is Rs 1,200,000 a year, which falls in the 1% slab: 1% of the amount above Rs 600,000 is Rs 6,000 a year, or Rs 500 a month.

What is the tax-free salary limit in Pakistan for 2026-27?

Rs 600,000 a year, which is Rs 50,000 a month. Salaried people earning up to that pay no income tax under the 2026-27 slabs.

What are the salary tax slabs for 2026-27?

Up to Rs 600,000: nil. Rs 600,001-1,200,000: 1% above 600,000. Rs 1,200,001-2,200,000: Rs 6,000 + 11%. Rs 2,200,001-3,200,000: Rs 116,000 + 20%. Rs 3,200,001-4,100,000: Rs 316,000 + 25%. Rs 4,100,001-5,600,000: Rs 541,000 + 29%. Rs 5,600,001-7,000,000: Rs 976,000 + 32%. Above Rs 7,000,000: Rs 1,424,000 + 35%. Each percentage applies to the amount above the start of the slab.

How much do I save under the 2026-27 budget?

Salaries up to Rs 2.2 million a year (about Rs 183,000 a month) pay the same as before. Above that the savings grow: Rs 6,000 a year at Rs 200,000 a month, Rs 50,000 a year at Rs 300,000 a month and Rs 177,000 a year at Rs 500,000 a month.

Is income tax calculated on gross or basic salary?

On taxable salary - your total salary including taxable allowances, less anything the law exempts. Your payslip or HR department can tell you the taxable figure; enter that here.

Do these rates apply to freelancers or business owners?

No. The salaried slabs apply only when salary is more than 75% of your taxable income. Business income, rental income and freelancers' income have their own rates and rules.

What this calculator does not do

It covers salaried individuals only, not business, rental, capital-gains or freelance income.
It does not apply tax credits or deductions (for example for donations, pension contributions or Zakat paid), which can lower your tax.
It does not add the high-earner surcharge under section 4AB for 2026-27: reports say the Finance Act 2026 removed it for salaried individuals. Check your own case with FBR or a tax adviser.
It is an estimate for planning, not tax advice; your employer's withholding and your annual return are what count.

Sources and rules used

Federal Board of Revenue (FBR) - Income Tax Ordinance 2001, First Schedule, as amended by the Finance Act 2026
FBR issues salary tax rates for tax year 2027 (PkRevenue) - the full TY2027 salaried table and the 75% condition
KPMG: Pakistan tax measures in Finance Act 2026 - summary of the reduced salaried rates, effective 1 July 2026

Checked 19 October 2026.

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Built and checked by Taimur Hassan Siddiqui, who has more than ten years in computer-science education. The formulas on this page are covered by an automated test suite, and the worked example on this page is one of its cases. Last updated 19 October 2026.