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Pakistan Salaried Income Tax 2026-27 Explained

FBR salaried tax slabs for FY 2026-27 in plain words, with worked examples, what changed from 2025-26 and a free calculator to find your monthly tax.

Pakistan Salaried Income Tax 2026-27 Explained

Quick answer: in FY 2026-27 (Tax Year 2027) the first Rs. 600,000 of yearly salary is tax-free, and the rate rises slab by slab up to 35% above Rs. 7 million. Use the Income Tax Calculator Pakistan to see your exact monthly tax and take-home pay.

The 2026-27 slabs for salaried individuals

Yearly income (Rs.) Rate on income in the slab
Up to 600,000 0%
600,001 to 1,200,000 1%
1,200,001 to 2,200,000 11%
2,200,001 to 3,200,000 20%
3,200,001 to 4,100,000 25%
4,100,001 to 5,600,000 29%
5,600,001 to 7,000,000 32%
Above 7,000,000 35%

The FBR budget summary says salaried rates were reduced by restructuring the slabs, adding intermediate slabs, and raising the threshold for the 35% rate from Rs. 4.1 million to Rs. 7 million. Reports also say the surcharge on salaried individuals was removed. Check the FBR website for the final gazetted figures.

How the tax is worked out

Each rate applies only to the income inside its slab. You do not pay the higher rate on everything.

Example: Rs. 150,000 per month (Rs. 1,800,000 a year)

  • First 600,000: Rs. 0
  • Next 600,000 at 1%: Rs. 6,000
  • Next 600,000 at 11%: Rs. 66,000
  • Total yearly tax: Rs. 72,000, or about Rs. 6,000 per month.

What changed from 2025-26?

  • The 23% slab (Rs. 2.2m to 3.2m) became 20%.
  • The 30% slab (Rs. 3.2m to 4.1m) is now 25%. The old 35% rate that started at Rs. 4.1 million is now split into 29% and 32%, so 35% only starts above Rs. 7 million.
  • The 9% surcharge that applied above Rs. 10 million for 2025-26 is no longer charged for salaried individuals.

Compare both years side by side in the calculator.

What the calculator does not include

It uses taxable salary only. It does not include other income, allowances, rebates, provident fund or other adjustments, so your payslip may differ. Always confirm with FBR or a tax professional.

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