Enter an amount to see the result.
Short answer: For tax year 2027 (1 July 2026 to 30 June 2027), salary up to Rs 600,000 a year (Rs 50,000 a month) is tax free, and the rate then rises through eight slabs from 1% to 35%. A Rs 100,000 monthly salary pays Rs 500 a month, Rs 250,000 pays Rs 23,000 and Rs 500,000 pays Rs 92,000. The Finance Act 2026 cut the rates above Rs 2.2 million a year and removed the 9% surcharge on salaried people earning over Rs 10 million.
Key takeaways
- No tax on annual taxable salary up to Rs 600,000, the same as last year.
- The first three slabs (up to Rs 2.2 million a year) did not change; every slab above that is lower in 2026-27.
- The top 35% rate now starts at Rs 7 million a year instead of Rs 4.1 million.
- Salaried people no longer pay the 9% surcharge above Rs 10 million.
- Filer or non-filer status does not change the tax your employer deducts from salary.
- Your monthly deduction is roughly your annual tax divided by 12.
How to use this salary tax calculator
Enter your monthly taxable salary, or switch to annual, and the calculator shows your yearly tax, monthly tax, take home salary and effective tax rate. It also shows what the same salary paid in 2025-26. I built it because many calculators I checked still showed last year’s slabs months after the budget.
Use your taxable salary, not your gross package if part of it is exempt. For most private sector employees the taxable salary is basic pay plus all allowances, minus anything the law exempts (for example, a medical allowance up to 10% of basic salary where your employer does not provide free treatment or reimbursement).
Salary tax slabs 2026-27 (tax year 2027)
These are the rates for a resident individual whose salary is more than 75% of total taxable income. They come from the table that the Finance Act 2026 substituted in clause (2) of Division I, Part I of the First Schedule to the Income Tax Ordinance, in force from 1 July 2026.
| Annual taxable salary (Rs) | Monthly salary (Rs) | Tax |
|---|---|---|
| Up to 600,000 | Up to 50,000 | 0% |
| 600,001 to 1,200,000 | 50,001 to 100,000 | 1% of the amount above 600,000 |
| 1,200,001 to 2,200,000 | 100,001 to 183,333 | Rs 6,000 + 11% of the amount above 1,200,000 |
| 2,200,001 to 3,200,000 | 183,334 to 266,667 | Rs 116,000 + 20% of the amount above 2,200,000 |
| 3,200,001 to 4,100,000 | 266,668 to 341,667 | Rs 316,000 + 25% of the amount above 3,200,000 |
| 4,100,001 to 5,600,000 | 341,668 to 466,667 | Rs 541,000 + 29% of the amount above 4,100,000 |
| 5,600,001 to 7,000,000 | 466,668 to 583,333 | Rs 976,000 + 32% of the amount above 5,600,000 |
| Above 7,000,000 | Above 583,333 | Rs 1,424,000 + 35% of the amount above 7,000,000 |
The monthly column is the annual figure divided by 12 and rounded, for quick reading only. The law works on annual income. FBR’s own rate card for 2026-27 lists the same eight slabs under section 149.
How salary tax is calculated, step by step
The fixed amount in each row already contains the tax on all lower slabs, so you only need one row. Here is the method the calculator follows.
- Work out your annual taxable salary: monthly taxable salary x 12, plus any bonus or arrears you expect in the year, minus exempt items.
- Find the slab your annual figure falls in.
- Subtract the lower limit of that slab from your income.
- Multiply the result by the slab rate and add the fixed amount. This is your annual tax.
- Divide by 12 to estimate the monthly deduction on your payslip.
Under section 149, your employer deducts tax each month at your average rate, based on the salary it expects to pay you for the whole tax year, and it corrects any earlier excess or short deduction. If your salary stays the same all year, that works out to annual tax divided by 12. If you get a raise in January or a bonus in June, the remaining months carry the adjustment, so one month can look higher than usual.
Worked examples for 2026-27
Each example assumes the whole salary is taxable and stays the same for 12 months. Each figure uses the same formula as the calculator, so you can match it line by line.
Rs 50,000 a month
Annual salary: 50,000 x 12 = Rs 600,000. This does not exceed Rs 600,000, so the rate is 0%. Tax: Rs 0 a year and Rs 0 a month.
Rs 100,000 a month
Annual salary: Rs 1,200,000, which is in the second slab. Tax: 1% of (1,200,000 minus 600,000) = 1% of 600,000 = Rs 6,000 a year, or Rs 500 a month. Effective rate: 0.5%. This is the same as in 2025-26.
Rs 250,000 a month
Annual salary: Rs 3,000,000, which is in the fourth slab (2.2 million to 3.2 million). Tax: 116,000 + 20% of (3,000,000 minus 2,200,000) = 116,000 + 160,000 = Rs 276,000 a year, or Rs 23,000 a month. Effective rate: 9.2%. Last year the same salary paid Rs 300,000 (Rs 25,000 a month), so you save Rs 2,000 a month.
Rs 500,000 a month
Annual salary: Rs 6,000,000, which is in the seventh slab (5.6 million to 7 million). Tax: 976,000 + 32% of (6,000,000 minus 5,600,000) = 976,000 + 128,000 = Rs 1,104,000 a year, or Rs 92,000 a month. Effective rate: 18.4%. In 2025-26 this salary paid Rs 1,281,000 (Rs 106,750 a month), so the saving is Rs 14,750 a month.
Quick table: tax on common monthly salaries
| Monthly salary (Rs) | Monthly tax 2026-27 (Rs) | Monthly tax 2025-26 (Rs) | You save per month (Rs) |
|---|---|---|---|
| 50,000 | 0 | 0 | 0 |
| 60,000 | 100 | 100 | 0 |
| 75,000 | 250 | 250 | 0 |
| 100,000 | 500 | 500 | 0 |
| 150,000 | 6,000 | 6,000 | 0 |
| 200,000 | 13,000 | 13,500 | 500 |
| 250,000 | 23,000 | 25,000 | 2,000 |
| 300,000 | 34,666.67 | 38,833.33 | 4,166.67 |
| 400,000 | 62,000 | 71,750 | 9,750 |
| 500,000 | 92,000 | 106,750 | 14,750 |
| 1,000,000 | 264,500 | 307,107.50 | 42,607.50 |
What changed from 2025-26
I compared the new table with the 2025-26 table that FBR keeps as a footnote in the amended Ordinance. FBR’s Circular No. 02 of 2026-27 (8 September 2026) explains both changes.
| Annual taxable salary (Rs) | 2025-26 rate | 2026-27 rate |
|---|---|---|
| Up to 600,000 | 0% | 0% (no change) |
| 600,001 to 1,200,000 | 1% | 1% (no change) |
| 1,200,001 to 2,200,000 | 11% | 11% (no change) |
| 2,200,001 to 3,200,000 | 23% | 20% |
| 3,200,001 to 4,100,000 | 30% | 25% |
| 4,100,001 to 5,600,000 | 35% | 29% |
| 5,600,001 to 7,000,000 | 35% | 32% |
| Above 7,000,000 | 35% | 35% |
| Surcharge above 10,000,000 | 9% of tax | None for salaried |
So the budget did two things. It split the old top slab into three and lowered every rate above Rs 2.2 million, and it amended section 4AB so that an individual with salary income pays no surcharge. Before, a salaried person with taxable income above Rs 10 million paid an extra 9% of the tax. For a Rs 1,000,000 monthly salary that alone was Rs 304,290 a year. The 10% surcharge on business people and AOPs above Rs 10 million continues.
If you earn up to Rs 183,333 a month (Rs 2.2 million a year), your tax is exactly the same as last year. The relief starts above that level and grows with income.
Does being a filer or non-filer change salary tax?
No. The Tenth Schedule doubles many withholding rates for people who are not on the Active Taxpayers List, but rule 10(a) of that Schedule excludes tax deducted from salary under section 149. FBR’s 2026-27 rate card also shows no separate non-ATL rate for salary. Being a filer still matters a lot for everything else: buying or selling property and many other withholding taxes cost more for non-filers. You can check your status on FBR or through the Tax Asaan app.
How to check the tax on your payslip
- Find the “income tax” line on your payslip and multiply it by 12.
- Enter your monthly taxable salary in the calculator and compare the annual tax.
- If your payslip shows more, ask HR whether they are still using the 2025-26 table, adding the old surcharge, or including a bonus or arrears spread over the year.
- From July 2026 onward, an employer that applied the old table in the first months should correct the difference in later months under section 149.
How to file your return on IRIS and claim a refund
Filing a return keeps you on the Active Taxpayers List. Salaried individuals file online on IRIS, and under section 118 the due date for tax year 2027 is 30 September 2027 unless FBR extends it.
- Register on IRIS with your CNIC, a mobile number in your name and your email if you are not registered yet.
- Open the return for tax year 2027 and enter your salary from the employer certificate. Tax deducted by your employer usually appears automatically; check it.
- Add other income, such as bank profit, and tax already paid on bills, vehicles or withdrawals.
- Fill the wealth statement, then submit both.
If the tax deducted is more than your final liability, for example because you changed jobs and both employers deducted tax, the return shows a refund. Under section 170 you apply for it within three years, and the Commissioner must decide within sixty days of the application. If you also earn from freelancing or YouTube, that income follows a separate regime: read my guide to freelancer tax in Pakistan before you file.
Common mistakes
- Taxing each slab separately and then adding the fixed amount. The fixed amount already covers the lower slabs. Use one row only.
- Using last year’s slabs. Many calculators online still show the 23%, 30% and 35% rates, or add the 9% surcharge.
- Using gross salary with exempt allowances. Enter taxable salary only.
- Forgetting bonuses. A bonus raises your annual income and can push part of it into a higher slab.
- Applying the salary table to mixed income. If salary is 75% or less of your taxable income, the higher non-salaried table applies, which this calculator does not cover.
In 2026-27 a Rs 500,000 monthly salary pays Rs 92,000 tax a month, Rs 14,750 less than in 2025-26.
What this calculator does not cover
It does not handle exempt allowances or perquisite values, Zakat, tax credits, tax paid under other heads, non-residents, pension (which has its own table), directorship fees or people whose salary is 75% or less of total income. If you are looking for ways to add a second income stream, my guide to online earning in Pakistan explains the options, and you can find more free calculators for Pakistan on the tools page.
My view: run your own figure once in July and once after any raise. HR software is not always updated on time, and a wrong table costs you money every month until someone notices.
Frequently asked questions
What is the tax on a Rs 100,000 salary in Pakistan in 2026-27?
Rs 6,000 a year, which is Rs 500 a month. An annual salary of Rs 1,200,000 pays 1% on the Rs 600,000 above the tax free limit.
What is the tax free salary limit for 2026-27?
Rs 600,000 a year, or Rs 50,000 a month. Taxable salary at or below this level pays no income tax.
When do the new salary tax slabs apply?
From 1 July 2026. The Finance Act 2026 received the President’s assent on 26 June 2026 and came into force on 1 July 2026, the start of tax year 2027.
Is there still a surcharge on high salaries?
Not for salaried individuals. The 9% surcharge above Rs 10 million was withdrawn by the Finance Act 2026. The 10% surcharge still applies to other individuals and associations of persons above Rs 10 million.
Do non-filers pay more tax on salary?
No. Rule 10(a) of the Tenth Schedule keeps salary deductions out of the higher non-filer rates.
Why is my monthly tax different from annual tax divided by 12?
Your employer estimates your salary for the whole year and adjusts for earlier months. A raise, bonus, arrears, a mid-year joining date or tax paid under other heads can change the monthly figure.
Are freelancers taxed with the same slabs?
Not usually. Export proceeds from IT and IT enabled services are taxed under a separate regime at a percentage of receipts, depending on PSEB registration. See my freelancer tax guide for the details.
What is the last date to file the return for tax year 2027?
30 September 2027 for salaried individuals under section 118, unless FBR announces an extension. For tax year 2026, FBR extended the date to 15 October 2026.
How much tax is deducted from a Rs 120,000 or Rs 150,000 salary?
Rs 120,000 a month is Rs 1,440,000 a year: Rs 6,000 plus 11% of Rs 240,000, which is Rs 32,400 a year or Rs 2,700 a month. Rs 150,000 a month pays Rs 72,000 a year, or Rs 6,000 a month. Both are the same as in 2025-26, because the first three slabs did not change.
How much tax is deducted from a Rs 200,000 salary in 2026-27?
Rs 13,000 a month. The annual salary of Rs 2,400,000 pays Rs 116,000 plus 20% of Rs 200,000, which is Rs 156,000 a year. In 2025-26 the same salary paid Rs 162,000, so you keep Rs 500 more each month.
This calculator gives an estimate based on the salaried individuals table in Division I, Part I of the First Schedule to the Income Tax Ordinance 2001, as substituted by the Finance Act 2026 for tax year 2027, and on section 4AB as amended by the same Act. Rates last checked 10 November 2026. It follows the official schedule exactly for the taxable salary you enter, but it does not cover exemptions, Zakat, tax credits, tax paid under other heads, pension or non-resident cases. Your actual tax is what your employer or FBR calculates. For advice on your own case, ask a tax practitioner.