What are the new Pakistan salary tax slabs for FY 2026-27?

Per Finance Bill 2026-27 (Federal Budget announced June 12, 2026, effective 1 July 2026): 0 to 600,000 PKR is 0%, 600,001 to 1,200,000 PKR is 1% of excess (Rs 6,000 max), 1,200,001 to 2,200,000 PKR is Rs 6,000 + 11% of excess, 2,200,001 to 3,200,000 PKR is Rs 116,000 + 20% of excess (was 23%), 3,200,001 to 4,100,000 PKR is Rs 316,000 + 25% of excess (was 30%), 4,100,001 to 5,600,000 PKR is Rs 541,000 + 29% of excess (was 35%), 5,600,001 to 7,000,000 PKR is Rs 976,000 + 32% of excess (NEW slab), and above 7,000,000 PKR is Rs 1,424,000 + 35% of excess. The 9% Section 4AB surcharge previously applied above PKR 10 million has been ABOLISHED entirely for salaried individuals.

How much tax will I save in Pakistan FY 2026-27 vs 2025-26?

Tax savings under Finance Bill 2026-27 vary by income bracket. A salaried individual earning Rs 200,000 monthly (Rs 2,400,000 annually) sees tax drop from Rs 162,000 to Rs 156,000 (Rs 6,000 saved annually). At Rs 300,000 monthly (Rs 3,600,000), tax drops from Rs 466,000 to Rs 416,000 (Rs 50,000 saved). At Rs 500,000 monthly (Rs 6,000,000), tax drops from Rs 1,251,000 to Rs 1,104,000 (Rs 147,000 saved). At Rs 1,000,000+ monthly (above Rs 10M annually), savings are larger due to the surcharge abolition alone. Use this calculator to compare exact figures by toggling between FY 2026-27 and FY 2025-26.

What are the FY 2025-26 salaried tax slabs in Pakistan?

Per Finance Act 2025 effective 1 July 2025 (still applicable until 30 June 2026): 0 to 600,000 PKR is 0%, 600,001 to 1,200,000 PKR is 1%, 1,200,001 to 2,200,000 PKR is Rs 6,000 + 11%, 2,200,001 to 3,200,000 PKR is Rs 116,000 + 23%, 3,200,001 to 4,100,000 PKR is Rs 346,000 + 30%, above 4,100,000 PKR is Rs 616,000 + 35%. PLUS 9% Section 4AB surcharge on tax payable if annual taxable income exceeds PKR 10 million.

Has the Section 4AB surcharge been abolished in Pakistan?

Yes, for salaried individuals effective 1 July 2026 per Finance Bill 2026-27. The 9% Section 4AB surcharge that applied to tax payable when annual taxable income exceeded PKR 10 million is entirely eliminated for salaried persons. This is a major relief for high-earning salaried professionals. The surcharge may still apply to other taxpayer categories (business individuals, AOPs); confirm against your specific status. For FY 2025-26 and FY 2024-25, surcharge still applies (9% and 10% respectively).

How is salary tax calculated in Pakistan? Progressive slab math explained.

Pakistan uses progressive slab math, not flat rate. Each slab's marginal rate applies only to the income WITHIN that slab, NOT to your total income. Example: at PKR 1,500,000 annual income in FY 2026-27, first 600,000 is taxed at 0% (zero), next 600,000 at 1% (Rs 6,000), remaining 300,000 at 11% (Rs 33,000). Total tax: Rs 39,000. Many people mistakenly assume the top slab rate applies to total income, which would massively overstate the tax.

When is the Finance Bill 2026-27 effective in Pakistan?

The Federal Budget 2026-27 was presented in Pakistan's National Assembly on June 12, 2026. The Finance Bill 2026-27 will take effect on July 1, 2026 (start of fiscal year 2026-27 / tax year 2027), pending formal passage and assent. The new tax slabs and surcharge abolition apply to income earned from July 1, 2026 onward. Income earned before July 1, 2026 remains under FY 2025-26 Finance Act 2025 rules.

Does filer vs non-filer status change the salary tax slab?

No, the salary tax slabs themselves are identical for filer and non-filer salaried individuals. However, filer vs non-filer status DOES affect specific withholding tax rates on transactions like property purchase, vehicle registration, electricity bills above Rs 25,000, bank transactions, etc. Becoming an active filer (on FBR Active Taxpayer List) saves significant withholding tax across these touchpoints. File a nil annual return on the FBR IRIS portal to get on the ATL.

How is income tax deducted from my monthly salary in Pakistan?

Employers act as withholding agents under Section 149. They divide your annual tax liability into 12 equal monthly deductions (or apply progressive deduction over the year if salary varies). The deducted amount is shown on your monthly salary slip as Tax Deducted at Source (TDS) or Income Tax under PAYE. Starting July 1, 2026, employer payroll systems will switch to FY 2026-27 slabs, so your July 2026 salary slip will reflect the lower deductions and abolished surcharge for high earners.

What is the maximum take-home salary in Pakistan after tax under FY 2026-27?

Up to PKR 600,000 annual (around PKR 50,000 monthly) is 100% tax-free, full take-home. For higher salaries under FY 2026-27, effective tax rate is significantly lower than FY 2025-26 due to reduced rates: at PKR 200,000 monthly (Rs 2.4M annual) effective rate is ~6.5%, at Rs 300,000 monthly (Rs 3.6M annual) ~11.5%, at Rs 500,000 monthly (Rs 6M annual) ~18.4%, at Rs 1,000,000 monthly (Rs 12M annual) ~28.5%. The surcharge abolition adds further savings for income above Rs 10M.

Pakistan FBR Salary Tax Calculator 2026-27

Calculate Pakistan FBR income tax on your salary for new FY 2026-27 (Finance Bill 2026-27, effective July 1, 2026), FY 2025-26, and FY 2024-25. Progressive slab math, surcharge abolished for salaried, monthly + annual breakdown.

About the Pakistan FBR Salary Tax Calculator 2026-27

Free Pakistan FBR Salary Tax Calculator updated for the Federal Budget 2026-27 announced June 12, 2026 (effective July 1, 2026). Supports three tax years: FY 2026-27 (Finance Bill 2026-27, new 8 slabs with reduced marginal rates for Rs 2.2M-7M brackets and the 9% Section 4AB surcharge ABOLISHED for salaried individuals), FY 2025-26 (Finance Act 2025), and FY 2024-25 (Finance Act 2024). Enter your monthly or annual gross salary and get instant breakdown: gross income, slab-by-slab progressive tax (each slab applied only to income WITHIN that slab, not flat over total), Section 4AB surcharge handling (9% for FY 2025-26, 10% for FY 2024-25, ZERO for FY 2026-27 since abolished), monthly tax deduction, annual tax, monthly take-home, annual take-home, and effective tax rate. Verified against the latest Finance Bill and FBR notification. Built for Pakistani salaried professionals planning for the July 1, 2026 tax cut, freelancers earning local salary, fresh graduates evaluating job offers, and tax filers checking employer deductions during the transition between FY 2025-26 and FY 2026-27.

Pakistan FBR Salary Tax Calculator

Tax year

Effective from 1 July 2026.

Salary frequency

Gross monthly salary (PKR)

Enter your gross salary before tax. We compute progressive FBR slab tax + Section 4AB surcharge if your annual taxable income exceeds PKR 1 crore.

Gross monthly

Rs 200,000

Gross annual

Rs 2,400,000

Monthly tax deducted

Rs 13,000

Annual tax deducted

Rs 156,000

Take-home monthly

Rs 187,000

Take-home annual

Rs 2,244,000

Take-home 93.5%Tax 6.5%

Effective tax rate: 6.50%

Slab-by-slab breakdown (progressive math)

Slab	Income in slab	Rate	Tax
1 to 600,000	Rs 600,000	0%	Rs 0
600,001 to 1,200,000	Rs 600,000	1%	Rs 6,000
1,200,001 to 2,200,000	Rs 1,000,000	11%	Rs 110,000
2,200,001 to 3,200,000	Rs 200,000	20%	Rs 40,000
Slab tax subtotal			Rs 156,000
Total annual tax			Rs 156,000

Slab data as of: Q3 2026 (Finance Bill 2026-27 announced 12 June 2026, effective 1 July 2026). Pakistan FBR salaried individual tax slabs verified against the Finance Act for the selected tax year. Confirm current notification on the official FBR website before filing.

Important notes: This calculator uses progressive slab math (each slab's marginal rate applies only to income WITHIN that slab, not to total income). Tool covers SALARIED individuals only. Business income, AOP income, and rental income use different schedules. Filer vs non-filer status does not change the salary tax slab itself, only specific withholding rates on transactions like property, vehicles, and electricity bills.

Select the tax year: FY 2026-27 (Finance Bill 2026-27, effective 1 July 2026) is the default since the Federal Budget 2026-27 announced significant tax cuts and abolition of the 9% surcharge on salaried individuals. Switch to FY 2025-26 for tax payable on income earned during the still-ongoing fiscal year (until 30 June 2026), or FY 2024-25 for back returns.
Pick salary frequency: Monthly if you enter your monthly gross salary, Annual if you enter the full year amount.
Type your gross salary in the input box. We auto-format with thousand-grouping commas as you type. Use the gross figure BEFORE any tax deduction.
Read the breakdown: gross monthly / annual, monthly + annual tax deducted, take-home monthly / annual (highlighted in green), and effective tax rate. The visual bar shows take-home % versus tax %.
For FY 2026-27, the 9% Section 4AB surcharge that previously applied above PKR 10 million has been ABOLISHED for salaried individuals. For FY 2025-26 and 2024-25, surcharge still applies (9% and 10% respectively). The slab-by-slab table shows the full breakdown for transparency.

Frequently Asked Questions

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Pakistan FBR Salary Tax Calculator 2026-27

About the Pakistan FBR Salary Tax Calculator 2026-27

How to use the Pakistan FBR Salary Tax Calculator 2026-27

Frequently Asked Questions

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