Salary Tax in Pakistan 2026-27: Slabs, Examples and Monthly Deduction
The FY 2026-27 income tax slabs for salaried people in Pakistan, how the tax is calculated step by step, and the tax on monthly salaries from Rs 50,000 to Rs 600,000.
Updated 10 October 2026 · 7 min read
Salary tax slabs for 2026-27
These are the income tax slabs for salaried individuals under the Finance Act 2026. They apply to salary earned from 1 July 2026 to 30 June 2027. Income up to Rs 600,000 a year, which is Rs 50,000 a month, is not taxed.
| Annual income (Rs) | Tax |
|---|---|
| Up to 600,000 | No tax |
| 600,001 – 1,200,000 | 1% of the amount above Rs 600,000 |
| 1,200,001 – 2,200,000 | Rs 6,000 + 11% of the amount above Rs 1,200,000 |
| 2,200,001 – 3,200,000 | Rs 116,000 + 20% of the amount above Rs 2,200,000 |
| 3,200,001 – 4,100,000 | Rs 316,000 + 25% of the amount above Rs 3,200,000 |
| 4,100,001 – 5,600,000 | Rs 541,000 + 29% of the amount above Rs 4,100,000 |
| 5,600,001 – 7,000,000 | Rs 976,000 + 32% of the amount above Rs 5,600,000 |
| Above 7,000,000 | Rs 1,424,000 + 35% of the amount above Rs 7,000,000 |
Published summaries of the Finance Act 2026 also report that the 9% surcharge, which applied to salaried income above Rs 10 million in the previous year, has been abolished for salaried individuals.
How the tax is calculated, step by step
Pakistan’s salary tax is progressive. Each slice of your income is taxed at the rate of the slab it falls in, and moving into a higher slab does not raise the tax on your earlier income.
Take a monthly salary of Rs 150,000:
- Annual salary: 150,000 × 12 = Rs 1,800,000.
- The first Rs 600,000 is tax-free.
- The next Rs 600,000 (up to Rs 1,200,000) is taxed at 1%, which is Rs 6,000.
- The remaining Rs 600,000 (from Rs 1,200,000 to Rs 1,800,000) is taxed at 11%, which is Rs 66,000.
- Total tax: Rs 6,000 + Rs 66,000 = Rs 72,000 a year, or Rs 6,000 a month.
Using the formula in one step gives the same answer: the slab starting at Rs 1,200,000 has a fixed amount of Rs 6,000, plus 11% of the Rs 600,000 above it, which is Rs 66,000.
Tax on common monthly salaries
The table shows the tax at different monthly salary levels. “Take-home after tax” subtracts only income tax, not other deductions such as provident fund, loans or advances.
| Monthly salary | Annual salary | Tax per year | Tax per month | Take-home after tax | Effective rate |
|---|---|---|---|---|---|
| Rs 50,000 | Rs 600,000 | Rs 0 | Rs 0 | Rs 50,000 | 0.00% |
| Rs 60,000 | Rs 720,000 | Rs 1,200 | Rs 100 | Rs 59,900 | 0.17% |
| Rs 75,000 | Rs 900,000 | Rs 3,000 | Rs 250 | Rs 74,750 | 0.33% |
| Rs 100,000 | Rs 1,200,000 | Rs 6,000 | Rs 500 | Rs 99,500 | 0.50% |
| Rs 125,000 | Rs 1,500,000 | Rs 39,000 | Rs 3,250 | Rs 121,750 | 2.60% |
| Rs 150,000 | Rs 1,800,000 | Rs 72,000 | Rs 6,000 | Rs 144,000 | 4.00% |
| Rs 200,000 | Rs 2,400,000 | Rs 156,000 | Rs 13,000 | Rs 187,000 | 6.50% |
| Rs 250,000 | Rs 3,000,000 | Rs 276,000 | Rs 23,000 | Rs 227,000 | 9.20% |
| Rs 300,000 | Rs 3,600,000 | Rs 416,000 | Rs 34,667 | Rs 265,333 | 11.56% |
| Rs 400,000 | Rs 4,800,000 | Rs 744,000 | Rs 62,000 | Rs 338,000 | 15.50% |
| Rs 500,000 | Rs 6,000,000 | Rs 1,104,000 | Rs 92,000 | Rs 408,000 | 18.40% |
| Rs 600,000 | Rs 7,200,000 | Rs 1,494,000 | Rs 124,500 | Rs 475,500 | 20.75% |
A common question is how much tax applies to a Rs 100,000 monthly salary. That is Rs 1,200,000 a year, which sits at the top of the 1% slab, so the tax is Rs 6,000 a year or Rs 500 a month. Move up to Rs 125,000 a month and the tax rises to Rs 39,000 a year, because the part above Rs 1,200,000 is now taxed at 11%.
What counts as taxable salary?
Taxable salary generally includes basic pay along with most allowances, bonuses and benefits that your employer pays you. Some items are treated differently, and certain rebates or credits can reduce the final tax. Because of that, the amount your employer actually deducts is the figure that matters, and the tables here are best used as a close estimate.
What changed from last year?
According to published summaries of the Finance Act 2026, the main changes for salaried individuals compared with FY 2025-26 are:
- The rate on income between Rs 600,001 and Rs 1,200,000 fell from 2.5% to 1%.
- The 23% slab became 20%, and the 30% slab became 25%.
- The top rate of 35% now starts at Rs 7,000,000 instead of Rs 4,100,000, with two new slabs of 29% and 32% in between.
- The 9% surcharge on salaried income above Rs 10 million was removed.
How to check your own deduction
- Enter your taxable monthly salary into the salary tax calculator and compare the monthly tax with your payslip.
- If your payslip shows a different amount, check whether some of your allowances are treated as non-taxable, and whether your salary changed during the year. Employers usually estimate your annual income and adjust the deduction as it changes.
- To see the full picture of your monthly pay, including overtime, unpaid leave, loans and advances, use the Salary Calculator.