Pakistan Salary Tax Calculator 2026-27
Monthly tax, take-home pay and effective rate for salaried individuals, with tax year 2026 for comparison.
- Annual taxable salary
- Rs 1,800,000
- Annual income tax
- Rs 72,000
- Monthly tax deduction
- Rs 6,000
- Monthly take-home (after tax)
- Rs 144,000
- Effective tax rate
- 4.00%
- Difference vs tax year 2026
- Rs 0 less per year
Tax year 2027 (1 Jul 2026 – 30 Jun 2027). Excludes other income, deductions, tax credits and employer-specific adjustments.
Salaried tax slabs: Tax year 2026 (1 Jul 2025 – 30 Jun 2026)
| Annual taxable salary | Rate on income in band |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,000 – Rs 1,200,000 | 1% |
| Rs 1,200,000 – Rs 2,200,000 | 11% |
| Rs 2,200,000 – Rs 3,200,000 | 23% |
| Rs 3,200,000 – Rs 4,100,000 | 30% |
| Above Rs 4,100,000 | 35% |
Plus a 9% surcharge on tax payable where income exceeds Rs 10,000,000.
Salaried tax slabs: Tax year 2027 (1 Jul 2026 – 30 Jun 2027)
| Annual taxable salary | Rate on income in band |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,000 – Rs 1,200,000 | 1% |
| Rs 1,200,000 – Rs 2,200,000 | 11% |
| Rs 2,200,000 – Rs 3,200,000 | 20% |
| Rs 3,200,000 – Rs 4,100,000 | 25% |
| Rs 4,100,000 – Rs 5,600,000 | 28.999999999999996% |
| Rs 5,600,000 – Rs 7,000,000 | 32% |
| Above Rs 7,000,000 | 35% |
Frequently asked questions
Is salary up to Rs 600,000 a year tax-free in Pakistan?
Yes. For salaried individuals, annual taxable salary up to Rs 600,000 is taxed at 0% in both tax year 2026 and tax year 2027.
What changed in the 2026-27 budget for salaried people?
Finance Act 2026 reduced the rates in the Rs 2.2–3.2 million and Rs 3.2–4.1 million bands, added 29% and 32% bands, moved the 35% rate to income above Rs 7 million, and removed the surcharge on high earners, according to published summaries.
How is monthly tax deducted?
Employers estimate annual taxable salary, calculate the annual tax and deduct it in equal monthly instalments, adjusting for changes during the year.
Does this include allowances and deductions?
It calculates tax on the taxable salary you enter. Exempt allowances, deductible allowances and tax credits should be removed or applied before entering the amount.
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Slabs as published for Finance Act 2026 (tax year 2027) and Finance Act 2025 (tax year 2026). For guidance only; confirm with the Income Tax Ordinance as amended, FBR (fbr.gov.pk) or a tax adviser.