The Finance Act 2026 changed the income tax slabs for salaried people in Pakistan for tax year 2027 (the 2026-27 financial year, 1 July 2026 to 30 June 2027). This guide shows the new slabs, explains how to calculate your own tax in a few steps, and lists the monthly tax on common salaries.
Salary tax slabs for 2026-27
| Annual taxable income | Tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 – Rs 1,200,000 | 1% of the amount above Rs 600,000 |
| Rs 1,200,001 – Rs 2,200,000 | Rs 6,000 + 11% of the amount above Rs 1,200,000 |
| Rs 2,200,001 – Rs 3,200,000 | Rs 116,000 + 20% of the amount above Rs 2,200,000 |
| Rs 3,200,001 – Rs 4,100,000 | Rs 316,000 + 25% of the amount above Rs 3,200,000 |
| Rs 4,100,001 – Rs 5,600,000 | Rs 541,000 + 29% of the amount above Rs 4,100,000 |
| Rs 5,600,001 – Rs 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 |
These rates apply if your salary is more than 75% of your taxable income. If most of your income comes from business, freelancing or a profession, the higher non-salaried slabs apply instead.
What changed from 2025-26
- The first three slabs are unchanged: 0% up to Rs 600,000, 1% up to Rs 1,200,000 and 11% up to Rs 2,200,000. Salaries up to about Rs 183,000 a month pay the same tax as before.
- Rates above Rs 2,200,000 a year are lower, and there are now more slabs, so the top rate of 35% only applies above Rs 7,000,000 a year.
- The 9% surcharge that salaried people paid on income above Rs 10 million in 2025-26 has been removed for salaried individuals.
How to calculate your salary tax, step by step
- Work out your annual taxable salary. Multiply your monthly gross salary by 12 and add any bonus. Medical allowance is exempt up to 10% of your basic salary, so subtract that part.
- Find your slab in the table above.
- Calculate the tax: the fixed amount for your slab, plus the slab's rate on the income above the slab's starting point.
- Divide by 12 to get the tax your employer deducts each month.
Monthly tax on common salaries
| Monthly salary | Tax per month (2025-26) | Tax per month (2026-27) | Take-home pay | Saving per month |
|---|---|---|---|---|
| Rs 50,000 | Rs 0 | Rs 0 | Rs 50,000 | Rs 0 |
| Rs 100,000 | Rs 500 | Rs 500 | Rs 99,500 | Rs 0 |
| Rs 150,000 | Rs 6,000 | Rs 6,000 | Rs 144,000 | Rs 0 |
| Rs 200,000 | Rs 13,500 | Rs 13,000 | Rs 187,000 | Rs 500 |
| Rs 300,000 | Rs 38,833 | Rs 34,667 | Rs 265,333 | Rs 4,167 |
| Rs 500,000 | Rs 106,750 | Rs 92,000 | Rs 408,000 | Rs 14,750 |
| Rs 1,000,000 | Rs 307,108 | Rs 264,500 | Rs 735,500 | Rs 42,608 |
Ways to legally reduce your tax
- Zakat deducted by your bank or paid to an approved body can be subtracted from taxable income.
- Donations to approved non-profit organisations give a tax credit on up to 30% of taxable income.
- Contributions to an approved pension fund (Voluntary Pension Scheme) give a tax credit on up to 20% of taxable income.
- Medical allowance up to 10% of basic salary is exempt, so ask your employer to show it separately on your payslip.
You can claim these when you file your return. Read how to file your tax return for the steps.
Rates are taken from the Finance Act as published in the Gazette of Pakistan. This guide is for general information, not professional tax advice.