Income Tax Calculator Pakistan 2026-27

How the FBR salary tax slabs work

Pakistani salary tax applies eight progressive slabs from 0% to 35% for tax year 2027, and each rate covers only the income inside its own slab. Annual salary up to PKR 600,000, PKR 50,000 a month, carries no tax. The FBR publishes each slab as a fixed amount plus a rate on the excess, so the third slab reads "Rs. 6,000 + 11% of the amount exceeding Rs. 1,200,000". That fixed amount is the cumulative tax at the slab floor, so it gives the same figure as applying every rate in turn. Your employer deducts one twelfth of the yearly tax from each month's pay under section 149.

The 2026-27 budget changes

The Finance Act 2026 made three changes for the salaried class from 1 July 2026:

• Lower rates across the middle slabs. The old 23% and 30% rates were cut, and new 20%, 25%, 29% and 32% steps were added in between, so most salaries pay less than in FY 2025-26.
• The 35% top rate now starts at PKR 7,000,000 of annual taxable income, raised from PKR 4,100,000.
• The 9% surcharge is abolished for salaried individuals. It previously added 9% to the tax bill on incomes above PKR 10,000,000. It still applies to non-salaried and business income.

The PKR 600,000 exempt threshold, PKR 50,000 a month, is unchanged.

Filer vs non-filer: does it change your salary tax?

No. The salary tax slabs are identical for filers and non-filers. Your employer deducts the same amount under section 149 whether or not you are on the FBR Active Taxpayer List. The filer position matters elsewhere: a non-filer pays higher withholding tax on buying or selling property and vehicles, on bank withdrawals and profit on debt, on dividends and prize money, and cannot claim a refund of over-deducted tax without filing a return. Check your status on the FBR Active Taxpayer List, and file an annual return through the IRIS portal to become a filer.

Medical allowance, zakat and provident fund

Three deductions lower the taxable salary the slabs apply to, and the form collects each one:

• Medical allowance is exempt up to 10% of your basic salary. Anything above that is taxable.
• Zakat paid under the Zakat and Ushr Ordinance, including zakat deducted by a bank, is a straight deduction from taxable income.
• Provident fund or approved pension contributions you make yourself are taken off before the slabs apply.

Conveyance allowance, house rent and other allowances are generally taxable as part of salary and belong in the gross figure.

Take-home pay by monthly salary, FY 2026-27

Income tax and take-home pay on common monthly salaries, on the tax year 2027 slabs, with no other deductions. Enter your own figure above for an exact result.

The June budget and the salaried class

Pakistan's federal budget is announced each June and takes effect on 1 July. It is the moment the FBR revises the salary slabs, so it triggers the year's largest wave of "how much tax will be deducted from my salary" searches. This calculator carries the FY 2026-27 slabs and the four previous years, and is updated when the next Finance Act changes them.