Income Tax Calculator Pakistan 2026–27

The salary slabs for tax year 2026–27

These are the rates in the Finance Act 2026, as published in the Gazette of Pakistan on 26 June 2026. They apply to salaried individuals — people whose salary is more than 75% of their taxable income.

Annual taxable income	Tax
Up to Rs 600,000	Nil
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 + 20% of the amount above Rs 2,200,000
Rs 3,200,001 – 4,100,000	Rs 316,000 + 25% of the amount above Rs 3,200,000
Rs 4,100,001 – 5,600,000	Rs 541,000 + 29% of the amount above Rs 4,100,000
Rs 5,600,001 – 7,000,000	Rs 976,000 + 32% of the amount above Rs 5,600,000
Above Rs 7,000,000	Rs 1,424,000 + 35% of the amount above Rs 7,000,000

The 9% surcharge has gone

If you have used another calculator this year and the number looked too high, this is probably why.

Until this Act, salaried individuals earning more than Rs 10 million a year paid a 9% surcharge on top of their income tax. The Finance Act 2026 removed it: the proviso to section 4AB now reads, in full, that no surcharge shall be payable.

For someone on Rs 1,000,000 a month — Rs 12 million a year — that is Rs 285,660 a year that is no longer owed. Any calculator still adding 9% is working from last year’s law.

What this means for a real salary

Monthly salary	Annual tax	Tax per month	Take-home per month	Effective rate
Rs 50,000	Nil	Nil	Rs 50,000	0%
Rs 80,000	Rs 3,600	Rs 300	Rs 79,700	0.38%
Rs 100,000	Rs 6,000	Rs 500	Rs 99,500	0.50%
Rs 150,000	Rs 72,000	Rs 6,000	Rs 144,000	4.00%
Rs 200,000	Rs 156,000	Rs 13,000	Rs 187,000	6.50%
Rs 300,000	Rs 416,000	Rs 34,667	Rs 265,333	11.56%
Rs 500,000	Rs 1,104,000	Rs 92,000	Rs 408,000	18.40%
Rs 1,000,000	Rs 3,174,000	Rs 264,500	Rs 735,500	26.45%

Income tax only. Provident fund, EOBI and Zakat come out separately.

Your slab rate is not your tax rate

This is the most common misunderstanding about Pakistani income tax, and it causes real anxiety around raises and promotions.

Someone earning Rs 200,000 a month is “in the 20% slab”. They do not pay 20% of their salary. They pay 6.5%.

Here is why. Their annual income is Rs 2,400,000, and it is sliced up:

• The first Rs 600,000 is taxed at 0% → Rs 0
• The next Rs 600,000 is taxed at 1% → Rs 6,000
• The next Rs 1,000,000 is taxed at 11% → Rs 110,000
• The last Rs 200,000 is taxed at 20% → Rs 40,000

Total: Rs 156,000, which is 6.5% of Rs 2,400,000.

Only the slice inside the top slab is taxed at the top rate. A raise can never leave you worse off — crossing into a higher slab only affects the rupees above the threshold, not the ones below it.

Worked example: Rs 300,000 a month

Annual taxable income Rs 3,600,000, which lands in the 25% slab.

1. Fixed amount for the slab. Rs 316,000
2. Amount above the threshold. 3,600,000 − 3,200,000 = Rs 400,000
3. Tax on the excess. 400,000 × 25% = Rs 100,000
4. Annual tax. 316,000 + 100,000 = Rs 416,000
5. Per month. 416,000 ÷ 12 = Rs 34,667

Take-home: Rs 300,000 − Rs 34,667 = Rs 265,333 a month. The effective rate is 11.56%, well below the 25% slab rate.

What is not included

• Provident fund. Your own contribution is deducted from your pay separately.
• EOBI. A small fixed monthly contribution in most private employment.
• Zakat. Deducted from certain bank accounts each Ramadan at 2.5%, not through payroll.
• Business or freelance income. Taxed under a different table entirely. If salary is 75% or less of your total income, these rates do not apply to you.
• Tax credits and deductible allowances. Certain donations, pension contributions and other reliefs can reduce taxable income before the slabs are applied.

Practical notes for salaried filers

• Tax is deducted at source. Your employer withholds it monthly under section 149, so the figure above should roughly match your payslip deduction.
• Filing is still required. Withholding is not filing. Returns are normally due by 30 September for salaried individuals.
• Being on the Active Taxpayer List matters. Non-filers pay higher withholding on banking transactions, property, vehicles and more — often far more than the tax itself.
• Keep your payslips. If your employer over-deducts, a refund is claimed through the annual return, and you will need the evidence.