Salary Tax Slabs 2026-27 Explained: How Much Tax Will You Pay?
From 1 July 2026, salaried Pakistanis are taxed under 8 slabs set by the Finance Act 2026. Income up to Rs. 600,000 a year stays tax-free and rates rise from 1% to 35%, with the 35% rate now starting at Rs. 7 million. Anyone earning up to about Rs. 183,000 a month pays the same tax as last year; higher earners pay less, and the salaried surcharge is gone.
- Tax-free limit unchanged at Rs. 600,000 a year (Rs. 50,000 a month).
- Slabs increased from 6 to 8; middle-income rates cut from 23% → 20% and 30% → 25%.
- Top 35% rate now applies only above Rs. 7 million a year.
- 9% surcharge on salaried income above Rs. 10 million abolished.
- Salaries up to Rs. 2.2 million a year see no change.
The 2026-27 salaried tax slabs
These rates apply to tax year 2027 (1 July 2026 – 30 June 2027) for individuals whose salary is more than 75% of their taxable income.
| Annual taxable salary (Rs.) | Tax |
|---|---|
| 0 – 600,000 | 0% |
| 600,001 – 1,200,000 | 1% of amount over 600,000 |
| 1,200,001 – 2,200,000 | 6,000 + 11% of amount over 1,200,000 |
| 2,200,001 – 3,200,000 | 116,000 + 20% of amount over 2,200,000 |
| 3,200,001 – 4,100,000 | 316,000 + 25% of amount over 3,200,000 |
| 4,100,001 – 5,600,000 | 541,000 + 29% of amount over 4,100,000 |
| 5,600,001 – 7,000,000 | 976,000 + 32% of amount over 5,600,000 |
| Above 7,000,000 | 1,424,000 + 35% of amount over 7,000,000 |
Monthly tax at common salaries: 2025-26 vs 2026-27
Monthly withholding is annual tax divided by 12. The 2025-26 figures include the 9% surcharge where it applied.
| Monthly salary | Tax 2025-26 | Tax 2026-27 | Yearly saving |
|---|---|---|---|
| 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. 13,500 | Rs. 13,000 | Rs. 6,000 |
| Rs. 250,000 | Rs. 25,000 | Rs. 23,000 | Rs. 24,000 |
| Rs. 300,000 | Rs. 38,833 | Rs. 34,667 | Rs. 50,000 |
| Rs. 400,000 | Rs. 71,750 | Rs. 62,000 | Rs. 117,000 |
| Rs. 500,000 | Rs. 106,750 | Rs. 92,000 | Rs. 177,000 |
| Rs. 1,000,000 | Rs. 307,108 | Rs. 264,500 | Rs. 511,290 |
Step-by-step: calculating your own tax
Example — Rs. 300,000 a month: 300,000 × 12 = 3,600,000, which is in the 3,200,001 – 4,100,000 slab. Tax = 316,000 + 25% × 400,000 = Rs. 416,000 a year, or Rs. 34,667 a month.
- Take your monthly taxable salary from your payslip and multiply by 12.
- Find the slab that contains your annual figure.
- Subtract the slab's starting amount, multiply by the slab rate, and add the fixed amount.
- Divide by 12 to get the monthly deduction your employer should make.
Why your payslip may show a different number
- Your employer may have deducted tax at the old rates for July–August before updating payroll; the excess is usually adjusted in later months.
- Bonuses and arrears increase the annual estimate, so monthly tax rises in the months they are paid.
- Tax credits (Zakat, approved donations, VPS pension contributions) reduce your tax but are often claimed only in your annual return.
Filing your return
Even though your employer deducts tax, filing an annual return on FBR's IRIS portal (normally by 30 September) keeps you on the Active Taxpayers List, which lowers withholding tax on property, vehicle registration and some banking transactions. You can also claim refunds if too much tax was deducted.
Frequently asked questions
Is Rs. 50,000 salary taxable in 2026-27?
No. Rs. 50,000 a month is Rs. 600,000 a year, which is the tax-free limit.
How much tax on Rs. 200,000 salary in 2026-27?
Annual salary Rs. 2,400,000 → 116,000 + 20% × 200,000 = Rs. 156,000 a year, which is Rs. 13,000 a month.
Has the salaried surcharge been removed?
Yes. The Finance Act 2026 abolished the 9% surcharge that applied to salaried income above Rs. 10 million in 2025-26.
Written and fact-checked by the PakCalc editorial team against the sources below. Rules change — if you spot something out of date, please tell us.
- Federal Board of Revenue (FBR)
- FBR IRIS
- Finance Act 2026 (Gazette of Pakistan, 26 June 2026)