Pakistan salary tax guide (FY 2026-27)
Salaried individuals in Pakistan are taxed on annual taxable income using progressive slabs set by the Federal Board of Revenue (FBR). The Federal Budget 2026-27 reduced the marginal rate on several middle-income slabs and abolished the surcharge that previously applied to high earners on the salaried class.
This calculator applies both the new Tax Year 2027 (FY 2026-27) slabs and the previous Tax Year 2026 slabs so you can see your monthly and yearly take-home pay and exactly how much you save under the new structure.
What changed in the 2026-27 budget
- PKR 2.2m–3.2m: rate cut from 23% to 20%.
- PKR 3.2m–4.1m: rate cut from 30% to 25%.
- PKR 4.1m–5.6m: rate cut from 35% to 29%.
- A new PKR 5.6m–7m slab was introduced at 32%.
- Income above PKR 7m remains at 35%.
- The 9% surcharge on the salaried class was abolished.
- The first three slabs (income up to PKR 2.2m) are unchanged.
How the tax is calculated
Each slab has a fixed base amount plus a percentage applied to the income above the slab’s lower threshold. For example, under the new slabs, income between PKR 2.2m and 3.2m is taxed at PKR 116,000 plus 20% of the amount over PKR 2.2m. The calculator adds up the correct base and marginal portion for your income automatically.
Frequently asked questions
When do the new slabs take effect?
The revised slabs are proposed in the Finance Bill 2026 and are intended to apply from 1 July 2026 (Tax Year 2027), subject to final passage by Parliament and notification by the FBR.
Is the surcharge really gone for salaried people?
The budget proposed abolishing the surcharge that applied to the salaried class. This calculator reflects that change in the new-slab results, while the old-slab results still include the previous 9% surcharge above the threshold for comparison.
Does this include deductions like provident fund or EOBI?
No. The tool estimates income tax on your taxable salary only. Employer-specific deductions such as provident fund contributions, EOBI, or allowances are not included.
Is the take-home amount monthly or yearly?
Both. You can enter a monthly or annual salary, and the results show annual take-home along with the monthly equivalent so you can plan around your pay cycle.
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This content is provided for general educational purposes only and does not constitute financial, tax, or legal advice. Rates, limits, and regulations change over time. Verify figures with an official source or a qualified professional before making decisions.