Income Tax Calculator Pakistan 2026-27
Enter your salary and see exactly what FBR takes — annual tax, the monthly deduction from your payslip, your take-home pay and which slab each rupee falls into. Updated for the Finance Act 2026, effective 1 July 2026.
Salaried rates apply when salary is more than 75% of your total income.
Use your gross taxable salary — basic pay plus taxable allowances, before any tax is deducted.
Income tax payable
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How your tax is built up
Pakistan uses progressive slabs: each band of income is taxed at its own rate, not your whole income at the top rate.
| Income band | Rate | Your income in band | Tax on band |
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Income tax slabs for tax year 2026-27
The Finance Act 2026 was passed on 23 June 2026 and took effect on 1 July 2026. It kept the Rs 600,000 exemption threshold, split the upper end of the salaried table into more bands, and abolished the 9% surcharge that previously applied to salaried people earning over Rs 10 million a year.
| Annual taxable income | Tax |
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Business individuals and AOPs
If salary is not your main source of income, the non-salaried table applies to your entire taxable income. The rates start higher (15% instead of 1%) and reach 45%.
| Annual taxable income | Tax |
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What counts as taxable income
Your taxable salary generally includes:
- Basic pay
- House rent, conveyance, utility and other cash allowances
- Bonuses, commissions and leave encashment
- The taxable value of perquisites such as a company car used privately
Commonly excluded or separately treated:
- Employer contributions to a recognised provident fund, within statutory limits
- Gratuity from an approved fund, within limits
- Medical reimbursement up to 10% of basic salary where the terms of employment provide it
Tax credits — for example on donations to approved institutions under section 61 or on pension fund contributions under section 63 — reduce your tax after the slab calculation. This calculator works out the slab tax; subtract any credits you qualify for from the result.
A worked example
Take a salaried person on Rs 250,000 a month, so Rs 3,000,000 a year, in tax year 2026-27:
- The first Rs 600,000 is exempt — no tax.
- The next Rs 600,000 (up to Rs 1,200,000) is taxed at 1% → Rs 6,000.
- The next Rs 1,000,000 (up to Rs 2,200,000) is taxed at 11% → Rs 110,000.
- The remaining Rs 800,000 (from Rs 2,200,000 to Rs 3,000,000) is taxed at 20% → Rs 160,000.
Total: Rs 276,000 a year, or Rs 23,000 a month. That is an effective rate of 9.2% — far below the 20% marginal rate, which is exactly why quoting "I'm in the 20% bracket" overstates what you actually pay.
Frequently asked questions
What is the tax-free limit in Pakistan?
Rs 600,000 of annual taxable income, which is Rs 50,000 a month. This applies to both salaried and non-salaried individuals and has not changed in 2026-27.
Is the 9% surcharge still charged?
Not for salaried individuals. The Finance Act 2026 removed it from 1 July 2026, which drops the top effective marginal burden on salary from about 38.15% back to 35%. The surcharge on non-salaried individuals and AOPs above Rs 10 million was not repealed, so this calculator still applies it to business income. Confirm your position with FBR before filing.
Which table applies if I have both salary and business income?
Compare your salary against your total taxable income. If salary is more than 75% of the total, the salaried table applies to everything. If it is 75% or less, the non-salaried table applies to everything. There is no blending of the two tables.
Does a raise ever leave me worse off?
No. Because only the income above each threshold is taxed at the higher rate, crossing a slab boundary can never reduce your take-home pay. Earning one rupee more than Rs 2,200,000 costs you 20 paisa of tax on that one rupee — not 20% of everything.
Is my salary data sent anywhere?
No. Every calculation on this page runs in your browser. Nothing you type is transmitted, logged or stored. You can disconnect from the internet and the calculator still works.