Free tool
Salary Tax Calculator Pakistan 2026-27
Enter your monthly salary to see your income tax under the FBR salaried slabs and what filer status saves you. Covers 2026-27 (Finance Act 2026) and the 2025-26 return due 30 September.
Annual tax filing. Already have an NTN? You're set.
How salary tax is calculated in Pakistan
Pakistan taxes salary progressively. A slab rate applies only to the income that falls inside that band, never to your whole salary — so crossing into a higher slab does not re-tax the rupees below it. The first Rs. 600,000 of annual taxable income is taxed at 0% for every salaried person, which is why the effective rate you actually pay always comes out below the headline slab rate.
These are the slabs for Tax Year 2026 (2025-26) — income earned from 1 July 2025 to 30 June 2026, filed by 30 September 2026. They apply where salary is at least 75% of taxable income; below that threshold the higher non-salaried table applies instead.
| Annual taxable income | Tax on this band |
|---|---|
| Up to Rs. 600,000 | No tax |
| Rs. 600,001 – 1,200,000 | 1% of the amount above Rs. 600,000 |
| Rs. 1,200,001 – 2,200,000 | Rs. 6,000 + 11% of the amount above Rs. 1,200,000 |
| Rs. 2,200,001 – 3,200,000 | Rs. 116,000 + 23% of the amount above Rs. 2,200,000 |
| Rs. 3,200,001 – 4,100,000 | Rs. 346,000 + 30% of the amount above Rs. 3,200,000 |
| Above Rs. 4,100,000 | Rs. 616,000 + 35% of the amount above Rs. 4,100,000 |
Taxable income above Rs. 10,000,000 also carries a surcharge of 9% of the tax payable under Section 4AB.
What changed in the 2026-27 salary tax slabs
The Finance Act 2026 kept the 0%, 1%, and 11% bands and cut every rate above Rs. 2,200,000: 20% instead of 23% up to Rs. 3,200,000, 25% instead of 30% up to Rs. 4,100,000, then new 29% and 32% bands up to Rs. 5,600,000 and Rs. 7,000,000 before the 35% top rate. The 9% Section 4AB surcharge on taxable income above Rs. 10,000,000 was withdrawn. Our Budget 2026-27 guide covers the rest of the changes for salaried filers.
Worked examples
Three common salaries, with Tax Year 2026 tax computed by the same engine as the calculator above.
| Monthly salary | Annual income | Annual tax | Per month | Effective rate |
|---|---|---|---|---|
| Rs. 100,000 | Rs. 1,200,000 | Rs. 6,000 | Rs. 500 | 0.5% |
| Rs. 200,000 | Rs. 2,400,000 | Rs. 162,000 | Rs. 13,500 | 6.75% |
| Rs. 500,000 | Rs. 6,000,000 | Rs. 1,281,000 | Rs. 106,750 | 21.35% |
Why filer status changes what you pay
Income tax is only part of what a Pakistani taxpayer hands over. Withholding tax is deducted at source on bank profit, property, and vehicles — and the rate depends entirely on whether you appear on the FBR Active Taxpayer List.
| Transaction | Filer | Non-filer |
|---|---|---|
| Bank profit on deposits (s.151) | 20% | 40% |
| Dividends | 15% | 30% |
| Property purchase (s.236K) | 1.25% | 10.5% |
| Property sale or transfer (s.236C) | 2.75% | 11.5% |
The s.236K non-filer rate shown is the lowest of three bands (fair market value up to Rs. 50 million); higher bands charge more. Missing the filing deadline also costs Rs. 25,000 to be restored to the Active Taxpayer List.
Frequently asked questions
- How is income tax calculated on salary in Pakistan?
- Pakistan uses progressive slabs, so each rate applies only to the income inside its own band rather than to your whole salary. For a salaried person the first Rs. 600,000 is taxed at 0%, the next Rs. 600,000 at 1%, and so on up the table for the year you select. This is why the effective rate you actually pay is always lower than the slab rate you fall into.
- What is the tax-free salary limit in Pakistan?
- Annual taxable income up to Rs. 600,000 — that is Rs. 50,000 a month — is taxed at 0% for salaried individuals. Earning below that threshold does not remove the reason to file: filing is what puts you on the Active Taxpayer List and gets you the lower withholding rates on banking and property.
- Which tax year does this calculator use?
- Both current years. Tax Year 2027 (2026-27) covers salary from 1 July 2026 and uses the Finance Act 2026 slabs your employer withholds against now. Tax Year 2026 (2025-26) covers 1 July 2025 to 30 June 2026 and is the return due 30 September 2026. FBR tax years run July to June and are named for the calendar year they end in; switch between them in the tax year selector.
- What changed in the 2026-27 salary tax slabs?
- The Finance Act 2026 kept the 0% band to Rs. 600,000, 1% to Rs. 1,200,000, and 11% to Rs. 2,200,000, then cut the rates above that: 20% (was 23%) up to Rs. 3,200,000 and 25% (was 30%) up to Rs. 4,100,000, with new 29% and 32% bands up to Rs. 5,600,000 and Rs. 7,000,000 before the 35% top rate. It also withdrew the Section 4AB surcharge on high earners.
- Who counts as a salaried individual for these slabs?
- A person whose salary income is at least 75% of their taxable income. If salary is less than 75% of the total — for example a freelancer or someone whose business income dominates — the non-salaried slab table applies instead, and the rates are higher.
- Is there extra tax above Rs. 10,000,000?
- For Tax Year 2026, yes: salaried individuals whose taxable income exceeds Rs. 10,000,000 pay a surcharge of 9% of the income tax payable under Section 4AB, a surcharge on the tax itself rather than an extra slab. The Finance Act 2026 removed that surcharge, so from Tax Year 2027 there is none.
- Does this calculator account for tax my employer already deducted?
- No. It shows the total annual liability on the income you enter. Tax your employer withheld from salary each month under Section 149 is credited against that liability in your return, so what you owe at filing is the difference — and if too much was withheld, the excess is refundable.
- How much does being a filer actually save?
- It depends on what you transact. A filer pays 1.25% advance tax on an immovable property purchase where a non-filer pays 10.5%, and 20% on bank profit where a non-filer pays 40%. On a Rs. 10,000,000 property purchase that single difference is Rs. 925,000.