Work out the income tax on your salary for tax year 2026–27 using the new slabs from the Finance Act 2026. Enter your monthly or yearly salary to see your monthly tax, take-home pay and how much you save compared with last year.
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Salaried tax slabs 2026–27
| Annual taxable salary | Tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 – 1,200,000 | 1% of amount over Rs 600,000 |
| Rs 1,200,001 – 2,200,000 | Rs 6,000 + 11% over Rs 1.2m |
| Rs 2,200,001 – 3,200,000 | Rs 116,000 + 20% over Rs 2.2m |
| Rs 3,200,001 – 4,100,000 | Rs 316,000 + 25% over Rs 3.2m |
| Rs 4,100,001 – 5,600,000 | Rs 541,000 + 29% over Rs 4.1m |
| Rs 5,600,001 – 7,000,000 | Rs 976,000 + 32% over Rs 5.6m |
| Above Rs 7,000,000 | Rs 1,424,000 + 35% over Rs 7m |
These rates apply from 1 July 2026. Compared with 2025–26, the rates from Rs 2.2 million upwards were cut, two new slabs were added at 29% and 32%, and the 9% surcharge on salaried people earning over Rs 10 million a year was abolished.
Monthly tax at common salaries
| Monthly salary | Tax a month 2026–27 | Tax a month 2025–26 |
|---|---|---|
| Rs 50,000 | Rs 0 | Rs 0 |
| Rs 100,000 | Rs 500 | Rs 500 |
| Rs 150,000 | Rs 6,000 | Rs 6,000 |
| Rs 200,000 | Rs 13,000 | Rs 13,500 |
| Rs 300,000 | Rs 34,667 | Rs 38,833 |
| Rs 500,000 | Rs 92,000 | Rs 106,750 |
| Rs 1,000,000 | Rs 264,500 | Rs 307,108 |
Example: Rs 250,000 a month
That’s Rs 3,000,000 a year. Tax is Rs 116,000 plus 20% of the Rs 800,000 above Rs 2.2 million (Rs 160,000), so Rs 276,000 a year or Rs 23,000 a month. Under last year’s 23% rate it would have been Rs 25,000 a month.
Frequently asked questions
What is the tax-free salary limit in Pakistan for 2026–27?
Rs 600,000 a year, or Rs 50,000 a month. Salaries up to this amount pay no income tax.
When do the new slabs apply?
From 1 July 2026, the start of tax year 2026–27, under the Finance Act 2026.
Is the surcharge still charged?
No. The 9% surcharge on salaried individuals earning over Rs 10 million a year was abolished for 2026–27.
What counts as taxable salary?
Basic pay plus most allowances. Some items, such as certain medical allowances, can be exempt, so check your salary slip.
Sources
- CSSPrep: Income tax slabs 2026–27 (Finance Act)
- Express Tribune: Budget 2026–27 tax cuts for salaried class
- ProPakistani: Revised tax slabs
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