Pakistan Income Tax Slabs 2026-27 for Salaried Individuals
The salaried tax slabs for 2026-27 under the Finance Act 2026, what changed from 2025-26, the end of the 9% surcharge, and worked examples.
By Awais, Founder and editor-in-chiefPublished
The Finance Act 2026 cut income tax for salaried people earning more than Rs 2.2 million a year and removed the surcharge on high salaries. This guide lists the new slabs, compares them with 2025-26, and works through real salaries so you can check your payslip. To skip the maths, use the Pakistan salary tax calculator.
Which year is “2026-27”?
Pakistan names a tax year after the year in which it ends. Tax year 2027 runs from 1 July 2026 to 30 June 2027. People, banks and newspapers usually call it 2026-27. The previous year, tax year 2026, ran from 1 July 2025 to 30 June 2026.
The new rates come from the Finance Act 2026, published in the Gazette of Pakistan on 26 June 2026. Employers apply them from the July 2026 payroll.
Salaried tax slabs for 2026-27
These rates apply to an individual whose salary is more than 75% of their taxable income. If most of your income comes from business or property, a different (higher) table applies.
| Yearly taxable salary | Tax for tax year 2027 |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 to Rs 1,200,000 | 1% of the amount above Rs 600,000 |
| Rs 1,200,001 to Rs 2,200,000 | Rs 6,000 + 11% of the amount above Rs 1,200,000 |
| Rs 2,200,001 to Rs 3,200,000 | Rs 116,000 + 20% of the amount above Rs 2,200,000 |
| Rs 3,200,001 to Rs 4,100,000 | Rs 316,000 + 25% of the amount above Rs 3,200,000 |
| Rs 4,100,001 to Rs 5,600,000 | Rs 541,000 + 29% of the amount above Rs 4,100,000 |
| Rs 5,600,001 to 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 |
Source: FBR, Income Tax Ordinance 2001 as amended up to 30 June 2026, First Schedule, Part I, Division I, checked on 21 October 2026. The full Act is on the FBR Finance Acts page.
The “fixed amount” in each row is simply the tax on all the slabs below it. For example, Rs 116,000 is 1% of Rs 600,000 (Rs 6,000) plus 11% of Rs 1,000,000 (Rs 110,000).
How 2026-27 compares with 2025-26
| Yearly taxable salary | 2025-26 rate | 2026-27 rate |
|---|---|---|
| Up to Rs 600,000 | 0% | 0% |
| Rs 600,001 to Rs 1,200,000 | 1% | 1% |
| Rs 1,200,001 to Rs 2,200,000 | 11% | 11% |
| Rs 2,200,001 to Rs 3,200,000 | 23% | 20% |
| Rs 3,200,001 to Rs 4,100,000 | 30% | 25% |
| Rs 4,100,001 to Rs 5,600,000 | 35% | 29% |
| Rs 5,600,001 to Rs 7,000,000 | 35% | 32% |
| Above Rs 7,000,000 | 35% | 35% |
| Surcharge on salaried taxpayers | 9% of tax above Rs 10 million income | None |
Two things stand out. First, nothing changed below Rs 2.2 million a year, which is about Rs 183,000 a month. Second, the 9% surcharge is gone for salaried people. In 2025-26, anyone whose taxable income passed Rs 10 million paid an extra 9% on their whole tax bill. The Finance Act 2026 replaced that rule in section 4AB with “no surcharge shall be payable” for income under the head salary.
Who is affected
- Salaries up to Rs 183,000 a month: no change. You pay exactly what you paid last year.
- Rs 183,000 to Rs 583,000 a month: your top rate falls by 3 to 6 percentage points. The monthly saving grows from a few hundred rupees just above Rs 183,000 to about Rs 17,250 at Rs 583,000.
- Above Rs 583,000 a month: the 35% rate now starts at Rs 7 million instead of Rs 4.1 million, and if you earn over Rs 10 million a year, the surcharge no longer applies. Savings are large.
- Non-filers: salary tax is the same whether or not you are on the Active Taxpayers’ List. The Tenth Schedule, which raises withholding for non-filers, does not apply to tax deducted from salary under section 149.
Worked example 1: Rs 150,000 a month
- Yearly salary: Rs 1,800,000, in the Rs 1.2 million to 2.2 million slab.
- Tax: Rs 6,000 + 11% × (Rs 1,800,000 − Rs 1,200,000) = Rs 6,000 + Rs 66,000 = Rs 72,000 a year.
- Monthly deduction: Rs 6,000. Take-home: Rs 144,000.
This is identical to 2025-26, because the lower slabs did not change.
Worked example 2: Rs 300,000 a month
- Yearly salary: Rs 3,600,000, in the Rs 3.2 million to 4.1 million slab.
- 2026-27 tax: Rs 316,000 + 25% × Rs 400,000 = Rs 416,000, or Rs 34,667 a month.
- 2025-26 tax: Rs 346,000 + 30% × Rs 400,000 = Rs 466,000, or Rs 38,833 a month.
- Saving: Rs 50,000 a year, about Rs 4,167 a month.
Worked example 3: Rs 1,000,000 a month
- Yearly salary: Rs 12,000,000.
- 2026-27 tax: Rs 1,424,000 + 35% × Rs 5,000,000 = Rs 3,174,000, or Rs 264,500 a month.
- 2025-26 tax: Rs 616,000 + 35% × Rs 7,900,000 = Rs 3,381,000, plus the 9% surcharge of Rs 304,290, a total of Rs 3,685,290.
- Saving: Rs 511,290 a year.
How tax is deducted from your salary
Your employer deducts tax every month under section 149 of the Income Tax Ordinance. It estimates your salary for the whole tax year, works out the tax with the table above, and spreads it over your payments at your average rate. If you get an increment, a bonus or arrears, the employer recalculates. That is why the deduction in a bonus month is often higher.
A bonus is part of your salary for the year, so it is taxed at your top slab rate. Arrears are taxed in the year you receive them, but section 12(7) lets you ask for them to be taxed at the rates of the year you did the work if that keeps you in a lower slab.
Some allowances are not taxed at all. The common one is medical allowance up to 10% of basic salary, when your employer does not provide free treatment or reimburse medical bills.
Very high incomes: super tax
Super tax under section 4C is separate from the salary slabs. For tax year 2027 the Finance Act 2026 table charges an individual super tax only when income exceeds Rs 500 million, at 8% of the whole income. In tax year 2026 it started at Rs 150 million. It is normally paid with advance tax or the return, not deducted from salary.
FAQ
What is the tax-free salary limit in Pakistan for 2026-27?
Rs 600,000 a year, or Rs 50,000 a month. Above that, the first slab is only 1%, so a salary of Rs 100,000 a month pays Rs 6,000 a year.
Is the surcharge still charged on high salaries?
No. From tax year 2027 there is no surcharge on income from salary. The 10% surcharge still applies to other individuals and associations of persons with taxable income above Rs 10 million.
Do I need to file a return if tax is already deducted from my salary?
Usually yes. Salaried people whose taxable income is above the exemption limit generally have to file, and being on the Active Taxpayers’ List lowers the tax you pay on property, vehicles and some banking transactions. For salaried individuals the return is due by 30 September after the tax year ends, unless FBR extends it.
Why is my monthly deduction different from the calculator?
The calculator assumes the same salary every month. Increments, bonuses, arrears, tax-exempt allowances and tax already deducted elsewhere all change what your employer withholds in a given month. The yearly total should match once these are included.
Does the 2026-27 table apply to my rental or business income?
No. The salaried table applies only when salary is more than 75% of your taxable income. Otherwise the non-salaried table in the same schedule applies, and it has higher rates.
Try your own numbers in the Pakistan salary tax calculator, which shows the slab-by-slab working and your saving compared with 2025-26. Planning a loan with your new take-home pay? The EMI calculator shows the monthly instalment.