Salary tax in Pakistan 2026-27: slabs and worked examples from Rs 50,000 to Rs 500,000 a month
A salaried person in Pakistan earning Rs 150,000 a month pays Rs 6,000 a month in income tax in Tax Year 2027 and takes home Rs 144,000. At Rs 250,000 a month the tax is Rs 23,000. The slabs below come from the Finance Act 2026, which applies from 1 July 2026 to 30 June 2027. The Pakistan salary tax calculator applies the same table to any salary and shows the monthly and annual figures side by side.
All figures on this page are Pakistani rupees (PKR), written Rs as the calculators print them. "Tax Year 2027" is the FBR's name for the year that runs from 1 July 2026 to 30 June 2027. People also call it FY 2026-27.
Income tax slabs 2026-27 for salaried individuals
The salaried table applies when salary is more than 75% of your taxable income. Tax is worked out on annual taxable income, then divided by 12 for the monthly deduction your employer makes.
| Annual taxable income (PKR) | Tax |
|---|---|
| 0 to 600,000 | 0 |
| 600,001 to 1,200,000 | 1% of the amount over 600,000 |
| 1,200,001 to 2,200,000 | 6,000 + 11% of the amount over 1,200,000 |
| 2,200,001 to 3,200,000 | 116,000 + 20% of the amount over 2,200,000 |
| 3,200,001 to 4,100,000 | 316,000 + 25% of the amount over 3,200,000 |
| 4,100,001 to 5,600,000 | 541,000 + 29% of the amount over 4,100,000 |
| 5,600,001 to 7,000,000 | 976,000 + 32% of the amount over 5,600,000 |
| Over 7,000,000 | 1,424,000 + 35% of the amount over 7,000,000 |
Two things changed from the year before. The rates in the middle slabs came down (23% became 20%, 30% became 25%, and the old top rate of 35% now starts at 7,000,000 instead of 4,100,000). And the 9% surcharge on people with income over 10,000,000 was removed for salaried taxpayers.
How the slab table works
The table is marginal. Only the part of your income inside each slab is taxed at that slab's rate. The fixed amount at the start of each row is the tax on all the slabs below it, already added up for you.
Take an annual salary of 1,800,000 (150,000 a month):
- The first 600,000 is tax free.
- The next 600,000 (600,001 to 1,200,000) is taxed at 1%, which is 6,000.
- The remaining 600,000 (1,200,001 to 1,800,000) is taxed at 11%, which is 66,000.
- Total: 72,000 a year, or 6,000 a month.
The row for the 1,200,001 to 2,200,000 slab gives the same answer in one line: 6,000 + 11% of 600,000 = 72,000. The Pakistan income tax calculator prints this slab by slab working for any yearly salary.
Monthly salary to take home: the quick table
The table assumes salary is your only income, no tax credits, and no deductions beyond income tax. Your employer also deducts things like provident fund or EOBI that are not tax, so the payslip figure can be lower. The payslip generator lays out such deductions line by line on a PDF payslip.
| Monthly salary | Annual | Annual tax | Monthly tax | Monthly take home | Effective rate |
|---|---|---|---|---|---|
| Rs 50,000 | 600,000 | 0 | 0 | 50,000 | 0% |
| Rs 75,000 | 900,000 | 3,000 | 250 | 74,750 | 0.33% |
| Rs 100,000 | 1,200,000 | 6,000 | 500 | 99,500 | 0.5% |
| Rs 150,000 | 1,800,000 | 72,000 | 6,000 | 144,000 | 4% |
| Rs 200,000 | 2,400,000 | 156,000 | 13,000 | 187,000 | 6.5% |
| Rs 250,000 | 3,000,000 | 276,000 | 23,000 | 227,000 | 9.2% |
| Rs 300,000 | 3,600,000 | 416,000 | 34,666.67 | 265,333.33 | 11.56% |
| Rs 500,000 | 6,000,000 | 1,104,000 | 92,000 | 408,000 | 18.4% |
The effective rate is total tax divided by total salary. It is always lower than the slab rate you are "in", because the lower slabs are taxed at lower rates.
What changed from Tax Year 2026
Below 2,200,000 a year (about 183,000 a month) nothing changed. Above that, the cut grows with income.
| Monthly salary | Monthly tax TY2026 | Monthly tax TY2027 | Saving a month |
|---|---|---|---|
| Rs 150,000 | 6,000 | 6,000 | 0 |
| Rs 200,000 | 13,500 | 13,000 | 500 |
| Rs 250,000 | 25,000 | 23,000 | 2,000 |
| Rs 300,000 | 38,833.33 | 34,666.67 | 4,166.67 |
| Rs 500,000 | 106,750 | 92,000 | 14,750 |
The TY2026 column uses the Finance Act 2025 slabs: 23% from 2,200,001, 30% from 3,200,001, and 35% from 4,100,001. The calculator keeps both years so you can check what your employer deducted before July 2026.
Bonuses, allowances and arrears
Salary for tax purposes includes basic pay, allowances, bonuses, commission, and most benefits your employer gives in money or in kind. A bonus paid in one month is added to that year's salary and taxed at your slab rates, not at a special rate. Your employer usually spreads the extra tax across the remaining months of the tax year, which is why a bonus month and the months after it can both show a higher deduction.
Medical allowance up to 10% of basic salary is exempt when the employer does not also provide medical treatment, and a few other allowances have their own rules. The FBR's Second Schedule lists the exemptions. The tax deduction certificate an employer issues after the year shows the tax actually deducted, which can be checked against the table above.
Filer or non filer
The slabs above are the same for everyone with a salary. Where filer status matters is withholding on other things: bank profit, dividends, property transfers, and vehicle registration all carry higher rates for people not on the Active Taxpayers List. Filing an annual income tax return is what puts a person on that list. The FBR's withholding card for Tax Year 2027 has the current rates for each item.
What this page does not do
This is a guide to how the table works, with examples. It is not tax advice. It does not cover business income, which has its own table, the super tax on very high incomes, or the tax credits for charitable donations, pension fund contributions, and some investments that can reduce the final bill. If your situation includes any of those, the figures here are a starting point, not the answer.
Zakat is not income tax, and the zakat calculator works it out at 2.5% of savings, gold, silver and other assets once they reach the nisab. A car bought on bank finance has sums of its own, which the car installment calculator works out from the price, the down payment and KIBOR plus the bank's spread.
Work out your monthly salary tax with the Pakistan salary tax calculator
Frequently asked questions
What is the tax free salary limit in Pakistan for 2026-27? Rs 600,000 a year, which is Rs 50,000 a month. Up to that amount, salaried individuals pay no income tax.
How much tax do I pay on a salary of Rs 100,000 a month? Rs 500 a month. Annual salary is 1,200,000, the 1% slab applies to the 600,000 above the free limit, so the year's tax is 6,000.
Is the 9% surcharge still charged in 2026-27? Not for salaried individuals. The surcharge on income over Rs 10,000,000 was removed for the salaried table from Tax Year 2027.
Sources
- FBR, Income Tax Ordinance 2001 amended up to 30 June 2026, First Schedule, Part I, Division I: the salaried table substituted by the Finance Act 2026 and, in its footnote, the Tax Year 2026 table it replaced. https://download1.fbr.gov.pk/Docs/2026724177725705IncomeTaxOrdinanace2001.pdf (checked 1 November 2026)
- The same text, section 4AB: no surcharge on salary income from Tax Year 2027, and the 9% surcharge of Tax Year 2026. Checked 1 November 2026.
- The same text, Second Schedule, Part I, clause (139): the medical allowance exemption. Checked 1 November 2026.
- FBR, list of Income Tax Ordinance texts: https://www.fbr.gov.pk/Categ/Income-Tax-Ordinance/326 (checked 1 November 2026)