Sahulat Tools

Income Tax Calculator Pakistan 2026-27

Work out your monthly salary tax and take-home pay under the new rates for 2026-27 (Tax Year 2027), effective 1 July 2026. Also handles business and freelance income, Zakat, donations and pension fund credits. Rates checked against the official Finance Act on 30 September 2026.
Your income

Salary tax slabs 2026-27

These rates apply from 1 July 2026 to 30 June 2027 to individuals whose salary is more than 75% of their taxable income (Finance Act 2026 (Act No. XLIII of 2026), First Schedule, Part I, Division I, clause 2).

Salaried individuals, 2026-27 (Tax Year 2027)
Annual taxable incomeTax
Up to Rs 600,0000%
Rs 600,001 – Rs 1,200,0001% of the amount above Rs 600,000
Rs 1,200,001 – Rs 2,200,000Rs 6,000 + 11% of the amount above Rs 1,200,000
Rs 2,200,001 – Rs 3,200,000Rs 116,000 + 20% of the amount above Rs 2,200,000
Rs 3,200,001 – Rs 4,100,000Rs 316,000 + 25% of the amount above Rs 3,200,000
Rs 4,100,001 – Rs 5,600,000Rs 541,000 + 29% of the amount above Rs 4,100,000
Rs 5,600,001 – Rs 7,000,000Rs 976,000 + 32% of the amount above Rs 5,600,000
Above Rs 7,000,000Rs 1,424,000 + 35% of the amount above Rs 7,000,000

There is no longer a surcharge on salaried income. Previously, 9% of the tax was added above Rs 10 million.

Tax on common salaries: 2026-27 vs 2025-26

Monthly salaryTax / month (2026-27)Tax / month (2025-26)ChangeTake-home
Rs 100,000Rs 500Rs 500–Rs 99,500
Rs 150,000Rs 6,000Rs 6,000–Rs 144,000
Rs 200,000Rs 13,000Rs 13,500−Rs 500Rs 187,000
Rs 300,000Rs 34,667Rs 38,833−Rs 4,167Rs 265,333
Rs 500,000Rs 92,000Rs 106,750−Rs 14,750Rs 408,000
Rs 1,000,000Rs 264,500Rs 307,108−Rs 42,608Rs 735,500

Business, freelance and other non-salaried income

Individuals whose salary is 75% of income or less, and associations of persons (AOPs), use these rates. They are unchanged for 2026-27. A 10% surcharge on the tax applies when taxable income exceeds Rs 10 million.

Non-salaried individuals and AOPs
Annual taxable incomeTax
Up to Rs 600,0000%
Rs 600,001 – Rs 1,200,00015% of the amount above Rs 600,000
Rs 1,200,001 – Rs 1,600,000Rs 90,000 + 20% of the amount above Rs 1,200,000
Rs 1,600,001 – Rs 3,200,000Rs 170,000 + 30% of the amount above Rs 1,600,000
Rs 3,200,001 – Rs 5,600,000Rs 650,000 + 40% of the amount above Rs 3,200,000
Above Rs 5,600,000Rs 1,610,000 + 45% of the amount above Rs 5,600,000

Tax on every salary

Pick your monthly salary for a full breakdown:

40,00050,00060,00070,00075,00080,00090,000100,000110,000120,000125,000130,000140,000150,000160,000175,000180,000200,000225,000250,000275,000300,000350,000400,000450,000500,000600,000700,000750,000800,000900,0001,000,000

Sources

  • Finance Act 2026 (Act No. XLIII of 2026), Gazette of Pakistan Extraordinary, 26 June 2026, published by the Federal Board of Revenue.
  • FBR Salient Features, Budget 2026-27 (Income Tax Ordinance 2001).
  • Income Tax Ordinance 2001: section 4AB (surcharge), sections 60, 61 and 63 (Zakat, donations, pension), Second Schedule clause 139 (medical allowance).

This calculator is for guidance. For your tax return or complex cases, check with FBR (IRIS) or a tax adviser.

Frequently asked questions

›How much tax is deducted from a Rs 100,000 salary in 2026-27?

On a monthly salary of Rs 100,000 (Rs 1.2 million a year), income tax is Rs 500 per month under the 2026-27 slabs. On Rs 200,000 a month it is Rs 13,000.

›What changed in the 2026-27 budget for salaried people?

Finance Act 2026 cut rates in the middle slabs (to 20%, 25%, 29% and 32%), added two new slabs, raised the start of the 35% top rate from Rs 4.1 million to Rs 7 million a year, and removed the 9% surcharge on salaried income above Rs 10 million. The tax-free limit stays at Rs 600,000 a year (Rs 50,000 a month).

›Who counts as a salaried person for tax?

You get the lower salaried rates if salary is more than 75% of your taxable income. If business, professional or freelance income is 25% or more of the total, the higher non-salaried rates apply to all of it. Choose “Salary + business/freelance” to check.

›Is the medical allowance taxable?

Medical allowance is tax-free up to 10% of your basic salary, if your employer does not also reimburse medical expenses. Tick “Enter my salary slip in detail” to apply it.

›How can I legally reduce my income tax?

Zakat deducted under the Zakat & Ushr Ordinance is subtracted from taxable income. Donations to approved charities (up to 30% of income) and contributions to an approved Voluntary Pension Scheme (up to 20% of income) give tax credits at your average tax rate.

›Is this the exact tax my employer will deduct?

It should be very close. Employers divide the estimated annual tax over the remaining months, so deductions can differ month to month if your salary, bonus or claimed credits change. Your final liability is settled when you file your return.

›What income is not included?

Rent, bank profit, dividends, capital gains, prize money and IT export proceeds are taxed separately at their own rates and are not part of this calculation.

More free tools

All tools →
Invoice GeneratorQuotation GeneratorReceipt GeneratorDelivery Challan