Salary Tax Calculator Pakistan 2026-27
Enter your taxable salary to see your monthly income tax and take-home pay under the new 2026-27 slabs (Finance Act 2026), and how much less tax you pay than last year.
| Annual taxable income | Tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 – Rs 1,200,000 | 1% of amount above Rs 600,000 |
| Rs 1,200,001 – Rs 2,200,000 | Rs 6,000 + 11% of amount above Rs 1,200,000 |
| Rs 2,200,001 – Rs 3,200,000 | Rs 116,000 + 20% of amount above Rs 2,200,000 |
| Rs 3,200,001 – Rs 4,100,000 | Rs 316,000 + 25% of amount above Rs 3,200,000 |
| Rs 4,100,001 – Rs 5,600,000 | Rs 541,000 + 29% of amount above Rs 4,100,000 |
| Rs 5,600,001 – Rs 7,000,000 | Rs 976,000 + 32% of amount above Rs 5,600,000 |
| Above Rs 7,000,000 | Rs 1,424,000 + 35% of amount above Rs 7,000,000 |
How much tax is deducted from salary in 2026-27?
For tax year 2027 (salary paid from 1 July 2026 to 30 June 2027), income up to Rs 600,000 a year is tax-free. Above that, tax rises in eight slabs, from 1% up to 35% on income over Rs 7 million. The Finance Act 2026 lowered four of those slabs and removed the 9% surcharge that applied to salaried people earning more than Rs 10 million. Your employer deducts the annual tax in twelve monthly instalments, so the monthly figure above is roughly what you will see on your salary slip.
Examples for 2026-27
| Monthly salary | Monthly tax 2026-27 | Take-home | Monthly tax 2025-26 |
|---|---|---|---|
| Rs 100,000 | Rs 500 | Rs 99,500 | Rs 500 |
| Rs 150,000 | Rs 6,000 | Rs 144,000 | Rs 6,000 |
| Rs 300,000 | Rs 34,667 | Rs 265,333 | Rs 38,833 |
| Rs 500,000 | Rs 92,000 | Rs 408,000 | Rs 106,750 |
| Rs 1,000,000 | Rs 264,500 | Rs 735,500 | Rs 307,108 |
Salaries up to about Rs 183,000 a month (Rs 2.2 million a year) pay the same tax as last year; the cuts start in the Rs 2.2–3.2 million slab, where the rate fell from 23% to 20%. At Rs 1,000,000 a month the 2025-26 figure includes the 9% surcharge, which is why the saving is largest at the top.
How the calculation works
- Your monthly salary is multiplied by 12 to get annual taxable income.
- The calculator finds your slab and applies its formula: a fixed amount plus a percentage of the income above the slab's lower limit. For Rs 3.6 million a year: Rs 316,000 + 25% × (3,600,000 − 3,200,000) = Rs 416,000.
- Annual tax ÷ 12 gives the monthly deduction; salary minus tax gives your take-home pay.
What changed from 2025-26
- Rs 2.2–3.2 million: 23% → 20%
- Rs 3.2–4.1 million: 30% → 25%
- Rs 4.1–5.6 million: 35% → 29% (new slab)
- Rs 5.6–7 million: 35% → 32% (new slab)
- Above Rs 7 million: 35% (unchanged rate)
- 9% surcharge on taxable income above Rs 10 million: abolished
The tax-free threshold (Rs 600,000) and the 1% and 11% slabs are unchanged.
Sources and limits
Slabs are taken from the Finance Act 2026 as reported in PwC Pakistan's Tax Memorandum and The Express Tribune; the 2025-26 slabs are those of the Finance Act 2025. This calculator is for salaried individuals (where salary is more than 75% of taxable income) and gives an estimate: it does not include tax credits, zakat, exempt allowances, pension or other income. For your exact liability, check your salary slip, your employer's tax certificate, or FBR, or ask a tax adviser.
Frequently asked questions
- How much salary is tax-free in Pakistan in 2026-27?
- Up to Rs 600,000 a year (Rs 50,000 a month) of taxable salary. Between Rs 600,000 and Rs 1.2 million the rate is 1%.
- How much tax will be deducted from a Rs 100,000 monthly salary?
- Rs 1.2 million a year falls at the top of the 1% slab: 1% × (1,200,000 − 600,000) = Rs 6,000 a year, or Rs 500 a month. It is the same as in 2025-26.
- Who benefits from the 2026-27 tax cuts?
- Anyone with taxable salary above Rs 2.2 million a year (about Rs 183,000 a month). Below that, the slabs did not change. The biggest savings are above Rs 10 million, where the 9% surcharge was removed.
- Is the tax year July to June?
- Yes. Tax year 2027 runs from 1 July 2026 to 30 June 2027, which is why it is called 2026-27. Your employer recalculates the deduction if your salary changes during the year.
- Do allowances count as taxable salary?
- Most allowances are part of taxable salary; some are exempt under the Second Schedule of the Income Tax Ordinance. Enter the taxable amount shown on your salary slip or employer's tax certificate for the most accurate result.
- Is my salary data stored?
- No. The calculation runs in your browser and nothing you type is sent anywhere.
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