Tax slab calculator Pakistan 2026-2027
Latest salaried rates under Finance Act 2026 (Tax Year 2027). Type a monthly salary and the tax, take-home and matching slab update immediately. Switch years if you need to check an older payslip.
Jump to calculatorSalary tax calculator
Runs entirely in your browser. Figures update as you type.
Finance Act 2026, gazetted 26 June 2026. Surcharge on salaried individuals withdrawn. Top 35% rate now starts above Rs. 7 million.
FY 2026-27 · salaried
FBR salaried slabs (FY 2026-27)
Highlight shows the slab your annual income currently falls into.
| Annual taxable income | Rate | Tax formula |
|---|---|---|
| Rs. Up to 600,000 | 0% | No tax |
| Rs. 600,001 – 1,200,000 | 1% | 1% of the amount exceeding Rs. 600,000 |
| Rs. 1,200,001 – 2,200,000 | 11% | Rs. 6,000 + 11% of the amount exceeding Rs. 1,200,000 |
| Rs. 2,200,001 – 3,200,000 | 20% | Rs. 116,000 + 20% of the amount exceeding Rs. 2,200,000 |
| Rs. 3,200,001 – 4,100,000 | 25% | Rs. 316,000 + 25% of the amount exceeding Rs. 3,200,000 |
| Rs. 4,100,001 – 5,600,000 | 29% | Rs. 541,000 + 29% of the amount exceeding Rs. 4,100,000 |
| Rs. 5,600,001 – 7,000,000 | 32% | Rs. 976,000 + 32% of the amount exceeding Rs. 5,600,000 |
| Rs. 7,000,001 – and above | 35% | Rs. 1,424,000 + 35% of the amount exceeding Rs. 7,000,000 |
What Finance Act 2026 actually changed
The Act was passed on 23 June 2026 and gazetted on 26 June. For salaried people it kept the Rs. 600,000 zero band, cut rates in the middle of the table, and pushed the 35% rate out to income above Rs. 7 million. It used to bite from Rs. 4.1 million. The 9% surcharge that used to sit on top of tax once income crossed Rs. 10 million was withdrawn for this table.
In numbers: the Rs. 2.2–3.2 million band dropped from 23% to 20%. The Rs. 3.2–4.1 million band dropped from 30% to 25%. The old single 35% band was split into 29%, 32% and 35%. KPMG's budget brief and FBR's own withholding card are the references behind the table in the calculator above.
How the slab math works
Pakistan does not tax the whole salary at the top rate. Each band has a fixed amount (the tax already due on the bands below it) plus a percentage on the rupees that sit inside this band.
Take annual taxable salary of Rs. 3,000,000. That lands in the Rs. 2,200,001–3,200,000 band: Rs. 116,000 plus 20% of the Rs. 800,000 above Rs. 2,200,000. Tax = Rs. 276,000. Monthly withholding on a flat salary is that figure divided by 12:Rs. 23,000. The same worked example is what StreamHCM's payroll engine uses as its regression test, so a live payslip and this page should agree when the salary is unchanged all year.
Taxable salary is not always gross
Employers withhold under Section 149 of the Income Tax Ordinance, 2001. The figure that goes into the slab is the sum of components marked taxable: basic pay, most allowances, bonuses, overtime. Not every line on the offer letter. Medical allowance is generally exempt up to 10% of basic where the employer is not also paying medical bills. Approved provident-fund contributions by the employer sit outside cash salary within FBR limits.
Zakat paid under the Zakat and Ushr Ordinance is a deductible allowance on the annual return (Section 60). It is not something payroll should quietly subtract from monthly withholding. Donations to FBR-approved institutions are a tax credit (Section 61), applied after the slab, not before it.
Updating the slabs next budget
This calculator reads from a single configuration file: country, tax year, effective dates, and a contiguous list of min / max / rate / fixed tax. That is the same shape StreamHCM stores for live payroll. When the next Finance Act is published, a new year is added, marked current, and the previous year stays selectable so last year's payslips still calculate.
These figures are for illustration. Confirm against the latest FBR notification before you file, and use a registered practitioner for anything that is not a straightforward salaried withholding.
Next: how monthly withholding is derived from the annual slab, or run a full payslip with EOBI and deductions.
Tax slab questions
Annual taxable salary up to Rs. 600,000 stays at 0%. Finance Act 2026 left that threshold unchanged.
Yes for Tax Year 2027 (salary earned 1 July 2026 to 30 June 2027): eight bands from 0% to 35%, with the top rate only on income above Rs. 7 million. Rates below that were cut in the middle bands compared with FY 2025-26.
Not for salaried individuals. Finance Act 2026 withdrew the surcharge that used to apply when taxable income crossed Rs. 10 million. Older years in the dropdown still add it so you can check a past payslip.
That is the simple case: a flat salary all year. StreamHCM payroll does not stop there. It re-estimates annual income from the average earned so far, then withholds only the gap against tax already deducted. A mid-year raise is caught in the month it happens.
No. This page is income tax only. Use the payroll calculator or the deductions calculator to stack EOBI, PF, loans and attendance penalties on top.
Other HR tools on StreamHCM
Salary Tax Calculator
How employers withhold tax under Section 149: annualise taxable salary, match the slab, then convert the annual bill into a monthly deduction.
Attendance Calculator
Turn present days, absences, late minutes, half-days and overtime into rupees using the same daily-rate and hourly-rate logic StreamHCM uses in payroll.
Payroll Calculator
Build a payslip from basic, allowances, overtime, EOBI, provident fund, loans, expense claims and FBR tax. The same stack StreamHCM runs on payday.
Deductions Calculator
Stack income tax, EOBI, provident fund, loan EMI, advances and attendance penalties to see what actually comes off gross before net pay.
Apply these slabs to every employee, not one salary at a time
StreamHCM stores the FBR table once. Every payslip in the run uses it, including mid-year joins, raises and taxable overtime.