The short answer
How much tax is deducted from salary in Pakistan in 2026–27?
Annual salary up to Rs 600,000 (Rs 50,000 a month) is tax-free. Above that, rates rise from 1% to 35% under the Finance Act 2026, which applies to tax year 2027 (1 July 2026 to 30 June 2027). On Rs 150,000 a month the tax is Rs 6,000 a month, the same as last year; on Rs 300,000 a month it is Rs 34,667, down from Rs 38,833 in tax year 2026.
The budget cut the rates for the Rs 2.2 million to Rs 4.1 million bands, added new 29% and 32% bands, and abolished the 9% surcharge on salaried income above Rs 10 million.
Salary tax slabs for tax year 2027
| Annual taxable salary | Tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 – 1,200,000 | 1% of the amount over Rs 600,000 |
| Rs 1,200,001 – 2,200,000 | Rs 6,000 + 11% over Rs 1,200,000 |
| Rs 2,200,001 – 3,200,000 | Rs 116,000 + 20% over Rs 2,200,000 |
| Rs 3,200,001 – 4,100,000 | Rs 316,000 + 25% over Rs 3,200,000 |
| Rs 4,100,001 – 5,600,000 | Rs 541,000 + 29% over Rs 4,100,000 |
| Rs 5,600,001 – 7,000,000 | Rs 976,000 + 32% over Rs 5,600,000 |
| Above Rs 7,000,000 | Rs 1,424,000 + 35% over Rs 7,000,000 |
For individuals whose salary is more than 75% of taxable income. Non-salaried individuals and AOPs have a separate, higher schedule.
Monthly tax by salary
| Monthly salary | Tax per month (2026–27) | Take-home | Tax per month (2025–26) | Monthly saving |
|---|---|---|---|---|
| Rs 50,000 | Rs 0 | Rs 50,000 | Rs 0 | Rs 0 |
| Rs 75,000 | Rs 250 | Rs 74,750 | Rs 250 | Rs 0 |
| Rs 100,000 | Rs 500 | Rs 99,500 | Rs 500 | Rs 0 |
| Rs 150,000 | Rs 6,000 | Rs 144,000 | Rs 6,000 | Rs 0 |
| Rs 200,000 | Rs 13,000 | Rs 187,000 | Rs 13,500 | Rs 500 |
| Rs 250,000 | Rs 23,000 | Rs 227,000 | Rs 25,000 | Rs 2,000 |
| Rs 300,000 | Rs 34,667 | Rs 265,333 | Rs 38,833 | Rs 4,167 |
| Rs 400,000 | Rs 62,000 | Rs 338,000 | Rs 71,750 | Rs 9,750 |
| Rs 500,000 | Rs 92,000 | Rs 408,000 | Rs 106,750 | Rs 14,750 |
| Rs 750,000 | Rs 177,000 | Rs 573,000 | Rs 194,250 | Rs 17,250 |
| Rs 1,000,000 | Rs 264,500 | Rs 735,500 | Rs 307,108 | Rs 42,608 |
What changed from last year
| Annual salary | Tax year 2026 | Tax year 2027 |
|---|---|---|
| Up to Rs 1.2 million | 0% / 1% | 0% / 1% (unchanged) |
| Rs 1.2 – 2.2 million | 11% | 11% (unchanged) |
| Rs 2.2 – 3.2 million | 23% | 20% |
| Rs 3.2 – 4.1 million | 30% | 25% |
| Rs 4.1 – 5.6 million | 35% | 29% |
| Rs 5.6 – 7.0 million | 35% | 32% |
| Above Rs 7.0 million | 35% | 35% |
| Surcharge above Rs 10 million | 9% of tax | Abolished |
How it works and sources
Employers deduct tax every month under section 149 of the Income Tax Ordinance, 2001 by working out the tax on your expected annual salary and dividing it over the remaining months. The calculator applies the slabs to gross taxable salary. Tax-exempt allowances, such as some medical allowances, reduce taxable salary; contributions to approved pension funds and Zakat can earn credits or deductions that are not included here.
Slabs from the Finance Act 2026 (enacted 27 June 2026), as reported by ProPakistani and PakTaxCalculator commentary, with the fixed amounts checked against the schedule. See the Federal Board of Revenue for the official text.
Frequently asked questions
What is the tax-free salary limit in Pakistan for 2026–27?
Rs 600,000 a year, or Rs 50,000 a month. It is unchanged from last year.
How much tax on a Rs 100,000 monthly salary?
Rs 500 a month in tax year 2027 (Rs 6,000 a year).
How much tax on a Rs 200,000 monthly salary?
Rs 13,000 a month in tax year 2027, down from Rs 13,500 last year.
How much tax on a Rs 300,000 monthly salary?
Rs 34,667 a month in tax year 2027, down from Rs 38,833 last year.
Was the surcharge on salaried income removed?
Yes. The Finance Act 2026 abolished the 9% surcharge that applied to salaried individuals earning more than Rs 10 million a year.
What is tax year 2027?
In Pakistan the tax year is named after the year in which it ends, so tax year 2027 runs from 1 July 2026 to 30 June 2027 (fiscal year 2026–27).
What is the highest salary tax rate?
35%, on annual salary above Rs 7 million, with a fixed amount of Rs 1,424,000 on the first Rs 7 million.