Pakistan Salary Tax 2026-27: Slabs, Examples and How to Calculate
If you earn a salary in Pakistan, the income tax slabs changed from 1 July 2026. The Finance Act 2026 replaced the old six-slab table with eight slabs, raised the point where the top rate starts and removed the extra 9% surcharge on salaried people, according to the FBR circular on the Act. This guide shows the slabs for tax year 2027 (1 July 2026 to 30 June 2027), how to calculate your own tax, and four worked examples.
The salary tax slabs for tax year 2027
These figures come from the FBR Withholding Income Tax Rate Card, which is updated to 30 June 2026 and shows the Division I rates of the First Schedule. Tax is worked out on your annual taxable income.
| Taxable income per year | Tax |
|---|---|
| Up to Rs 600,000 | No tax |
| Rs 600,001 to Rs 1,200,000 | 1% of the amount above Rs 600,000 |
| Rs 1,200,001 to Rs 2,200,000 | Rs 6,000 + 11% of the amount above Rs 1,200,000 |
| Rs 2,200,001 to Rs 3,200,000 | Rs 116,000 + 20% of the amount above Rs 2,200,000 |
| Rs 3,200,001 to Rs 4,100,000 | Rs 316,000 + 25% of the amount above Rs 3,200,000 |
| Rs 4,100,001 to Rs 5,600,000 | Rs 541,000 + 29% of the amount above Rs 4,100,000 |
| Rs 5,600,001 to Rs 7,000,000 | Rs 976,000 + 32% of the amount above Rs 5,600,000 |
| Above Rs 7,000,000 | Rs 1,424,000 + 35% of the amount above Rs 7,000,000 |
How to calculate your tax
- Take your yearly taxable salary. If you know your monthly salary, multiply it by 12.
- Find the slab that contains it.
- Add the fixed amount of that slab to the percentage of the part above the slab's lower limit.
- Divide by 12 to see the monthly deduction.
For example, a salary of Rs 150,000 a month is Rs 1,800,000 a year. That falls in the third slab, so the tax is Rs 6,000 + 11% of (1,800,000 - 1,200,000) = Rs 72,000 a year, or Rs 6,000 a month.
Four worked examples
| Monthly salary | Yearly salary | Tax per year | Tax per month | Left per month |
|---|---|---|---|---|
| Rs 100,000 | Rs 1,200,000 | Rs 6,000 | Rs 500 | Rs 99,500 |
| Rs 150,000 | Rs 1,800,000 | Rs 72,000 | Rs 6,000 | Rs 144,000 |
| Rs 300,000 | Rs 3,600,000 | Rs 416,000 | Rs 34,667 | Rs 265,333 |
| Rs 600,000 | Rs 7,200,000 | Rs 1,494,000 | Rs 124,500 | Rs 475,500 |
Notice how little tax a salary of Rs 100,000 a month pays, and how the share rises as income grows. Each rate applies only to the part of your income inside that slab, never to the whole salary.
What these numbers leave out
- Exempt allowances. Enter only the part of your pay that is taxable.
- Tax credits and zakat. Credits such as those for charitable giving, and zakat, can lower the final bill.
- Other income. Rent, business income and similar sources are taxed under their own rules.
- Your employer's payslip. It may apply credits or adjustments, so compare it with the estimate and ask payroll if the difference is large.
Check your own salary
Try the Pakistan Salary Tax Calculator to see your monthly tax, your effective rate and your marginal rate. If you issue invoices as a freelancer, the Invoice Requirements by Country checklist lists what a sales tax invoice must show.
Sources
- FBR Withholding Income Tax Rate Card, updated to 30 June 2026 (Finance Act 2026)
- Federal Board of Revenue
Checked on 21 October 2026. This is general information, not tax advice. Rates change each budget, so confirm with the FBR or a qualified adviser before you rely on them.