Pakistan's tax year 2027 runs from 1 July 2026 to 30 June 2027. The Finance Act 2026 changed the salary tax slabs for this period, cutting rates for many people earning above about Rs 183,000 a month and leaving lower salaries unchanged. This guide shows the rates, what they mean at common salary levels and how to work out your own figure.
Last verified: 6 November 2026. The slab rates here were checked against the Income Tax Ordinance, 2001 as published by the FBR (amended up to 30 June 2026), listed under Sources below. Please confirm them with the Federal Board of Revenue (FBR) or a tax adviser before making a decision that depends on them.
Salary tax slabs for 2026-27
These rates apply to salaried individuals, and to taxable income for the year:
| Annual taxable salary (Rs) | Tax payable |
|---|---|
| Up to 600,000 | 0% |
| 600,001 to 1,200,000 | 1% of the amount above 600,000 |
| 1,200,001 to 2,200,000 | 6,000 + 11% of the amount above 1,200,000 |
| 2,200,001 to 3,200,000 | 116,000 + 20% of the amount above 2,200,000 |
| 3,200,001 to 4,100,000 | 316,000 + 25% of the amount above 3,200,000 |
| 4,100,001 to 5,600,000 | 541,000 + 29% of the amount above 4,100,000 |
| 5,600,001 to 7,000,000 | 976,000 + 32% of the amount above 5,600,000 |
| Above 7,000,000 | 1,424,000 + 35% of the amount above 7,000,000 |
How much tax at common salaries?
This table assumes your whole salary is taxable and covers income tax only. Your payslip may differ for the reasons explained further down.
| Monthly salary (Rs) | Monthly tax (Rs) | Annual tax (Rs) | Share of salary | Monthly pay after tax (Rs) |
|---|---|---|---|---|
| 50,000 | 0 | 0 | 0% | 50,000 |
| 75,000 | 250 | 3,000 | 0.33% | 74,750 |
| 100,000 | 500 | 6,000 | 0.5% | 99,500 |
| 150,000 | 6,000 | 72,000 | 4% | 144,000 |
| 200,000 | 13,000 | 156,000 | 6.5% | 187,000 |
| 250,000 | 23,000 | 276,000 | 9.2% | 227,000 |
| 300,000 | 34,667 | 416,000 | 11.56% | 265,333 |
| 500,000 | 92,000 | 1,104,000 | 18.4% | 408,000 |
| 1,000,000 | 264,500 | 3,174,000 | 26.45% | 735,500 |
How to work out your own tax
Take a monthly salary of Rs 200,000 as an example:
- Find your annual salary. 200,000 × 12 = Rs 2,400,000.
- Find your band. Rs 2,400,000 falls between 2,200,001 and 3,200,000.
- Apply the formula. 116,000 + 20% × (2,400,000 − 2,200,000) = 116,000 + 40,000 = Rs 156,000 a year.
- Divide by 12. 156,000 ÷ 12 = Rs 13,000 a month.
- Find your overall rate. 156,000 ÷ 2,400,000 = 6.5%.
To skip the arithmetic, enter your salary in the free Pakistan Salary Tax Calculator. You can also enter that overall rate in the Salary Calculator to see your estimated take-home pay per month, week, day and hour.
What changed from 2025-26?
The Finance Act 2026 replaced six slabs with eight. The first three bands stayed the same, so tax is unchanged on annual salaries up to Rs 2,200,000. The main changes above that level are:
- The rate on income from Rs 2.2 million to Rs 3.2 million fell from 23% to 20%.
- The rate on income from Rs 3.2 million to Rs 4.1 million fell from 30% to 25%.
- The 35% rate, which used to start above Rs 4.1 million, now starts above Rs 7 million, with new 29% and 32% bands below it.
- The 9% surcharge on salaried people with income above Rs 10 million was withdrawn.
Here is what that means in practice, using the same assumption that the full salary is taxable:
| Monthly salary (Rs) | Annual tax 2025-26 (Rs) | Annual tax 2026-27 (Rs) | Saving per year (Rs) |
|---|---|---|---|
| 150,000 | 72,000 | 72,000 | 0 |
| 200,000 | 162,000 | 156,000 | 6,000 |
| 250,000 | 300,000 | 276,000 | 24,000 |
| 300,000 | 466,000 | 416,000 | 50,000 |
| 400,000 | 861,000 | 744,000 | 117,000 |
| 500,000 | 1,281,000 | 1,104,000 | 177,000 |
| 1,000,000 | 3,685,290 | 3,174,000 | 511,290 |
The last row includes the removal of the surcharge, because Rs 12 million a year is above the Rs 10 million threshold.
Will a raise or bonus reduce your take-home pay?
No. A common worry is that moving into a higher band makes you worse off, but the higher rate applies only to the part of your salary above that band's starting point.
- Raise: if your salary rises from Rs 150,000 to Rs 165,000 a month, your annual tax goes up by Rs 19,800, or Rs 1,650 a month. You keep the other Rs 13,350 of the monthly raise.
- Bonus: a Rs 300,000 bonus on top of a Rs 1,800,000 salary lifts your annual total to Rs 2,100,000. Tax rises from Rs 72,000 to Rs 105,000, so you keep Rs 267,000 of the bonus.
- Crossing a band: moving from Rs 2,200,000 to Rs 2,300,000 a year adds Rs 20,000 of tax on the extra Rs 100,000. The first Rs 2,200,000 is taxed just as it was before.
A bonus can make one month's deduction look large, because your employer has to adjust the tax for your new annual estimate. That doesn't mean the rate on your whole salary has gone up.
Why your payslip may show a different figure
Under section 149 of the Income Tax Ordinance, your employer estimates your tax for the year and deducts it monthly. The tables above can differ from your payslip for several reasons:
- Exempt allowances: not all pay is necessarily taxable. A medical allowance, for example, is generally exempt up to 10% of basic salary if your employer doesn't separately provide medical facilities or reimbursement.
- Mid-year changes: if your salary changes during the year, your employer recalculates, so the deduction in later months may not match a simple monthly figure.
- Joining part-way through: tax is based on what you earn during the tax year, so a partial year can mean a lower total.
- Other deductions: provident fund contributions, EOBI, health cover or loan repayments reduce your net pay, but they aren't income tax.
- Tax credits and deductions: Zakat, approved donations and voluntary pension contributions can reduce your tax, usually claimed through your return.
If the difference is large, ask your payroll team for the calculation. Check it against your annual tax certificate too.
Do salaried people still need to file a return?
Monthly deductions are an advance payment rather than a final settlement, so check whether you need to file even if your employer already deducts tax. Filing is also how you claim credits and reconcile any extra tax that was withheld. Returns are filed through FBR's IRIS portal, and the deadline for salaried people is typically 30 September after the tax year ends, though FBR can extend it.
Staying on the Active Taxpayers List (ATL) can also lower withholding tax on some other transactions. Reports on the Finance Act 2026 say the charge for individuals who file late and want to appear on the list rose to Rs 25,000, so it pays to file on time.
A common mix-up: a return covers the year that has already ended. Income earned from July 2025 to June 2026 falls under tax year 2026, so it uses last year's slabs. The new slabs in this article apply to income from 1 July 2026, and you would report that income in your tax year 2027 return.
Frequently asked questions
Is a salary of Rs 50,000 a month taxable in Pakistan?
Annual taxable salary up to Rs 600,000 is taxed at 0%, which equals Rs 50,000 a month. If your total for the year is above that, 1% applies to the excess.
How much tax is deducted from a Rs 100,000 salary?
If the whole salary is taxable, annual tax is Rs 6,000, which is Rs 500 a month. That leaves Rs 99,500 a month after income tax.
What is the highest salary tax rate in Pakistan for 2026-27?
The top rate is 35%, and it applies only to the part of annual taxable income above Rs 7 million.
When do the new slabs start?
They apply from 1 July 2026, the start of tax year 2027.
Sources
- FBR: Income Tax Ordinance, 2001, amended up to 30 June 2026 (First Schedule, Part I, Division I, paragraph (2): the 2026-27 salary slabs and the previous table; section 4AB: no surcharge on salary income)
- Finance Act, 2026 (Gazette of Pakistan, 26 June 2026) (the amending law)
- Vialto Partners: Pakistan employment tax summary (late-filing charge for the Active Taxpayers List only; not independently verified)
- Dawn: Budget FY26-27 coverage (background on slab changes)
- Federal Board of Revenue (official source for current law and filing)
The worked figures in this article were calculated from the published slabs.
This article is general information, not professional advice. See the disclaimer.