Skip to main content
ToolPinch
Pay calculators

Tax year 2027 · Finance Act 2026

Pakistan Salary Tax Calculator 2026–27

Find the monthly income tax on your salary under the new 2026–27 slabs, your take-home pay, and how much you save compared with last year.

Finance Act 2026 slabsCompare with 2025–26No signup

Your tax year 2027 salary tax

Enter your salary to see your income tax.

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 salaryTax
Up to Rs 600,0000%
Rs 600,001 – 1,200,0001% of the amount over Rs 600,000
Rs 1,200,001 – 2,200,000Rs 6,000 + 11% over Rs 1,200,000
Rs 2,200,001 – 3,200,000Rs 116,000 + 20% over Rs 2,200,000
Rs 3,200,001 – 4,100,000Rs 316,000 + 25% over Rs 3,200,000
Rs 4,100,001 – 5,600,000Rs 541,000 + 29% over Rs 4,100,000
Rs 5,600,001 – 7,000,000Rs 976,000 + 32% over Rs 5,600,000
Above Rs 7,000,000Rs 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 salaryTax per month (2026–27)Take-homeTax per month (2025–26)Monthly saving
Rs 50,000Rs 0Rs 50,000Rs 0Rs 0
Rs 75,000Rs 250Rs 74,750Rs 250Rs 0
Rs 100,000Rs 500Rs 99,500Rs 500Rs 0
Rs 150,000Rs 6,000Rs 144,000Rs 6,000Rs 0
Rs 200,000Rs 13,000Rs 187,000Rs 13,500Rs 500
Rs 250,000Rs 23,000Rs 227,000Rs 25,000Rs 2,000
Rs 300,000Rs 34,667Rs 265,333Rs 38,833Rs 4,167
Rs 400,000Rs 62,000Rs 338,000Rs 71,750Rs 9,750
Rs 500,000Rs 92,000Rs 408,000Rs 106,750Rs 14,750
Rs 750,000Rs 177,000Rs 573,000Rs 194,250Rs 17,250
Rs 1,000,000Rs 264,500Rs 735,500Rs 307,108Rs 42,608

What changed from last year

Annual salaryTax year 2026Tax year 2027
Up to Rs 1.2 million0% / 1%0% / 1% (unchanged)
Rs 1.2 – 2.2 million11%11% (unchanged)
Rs 2.2 – 3.2 million23%20%
Rs 3.2 – 4.1 million30%25%
Rs 4.1 – 5.6 million35%29%
Rs 5.6 – 7.0 million35%32%
Above Rs 7.0 million35%35%
Surcharge above Rs 10 million9% of taxAbolished

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.