Income Tax Slabs in Pakistan — FY 2026-27 (Salaried Individuals)
The complete FBR slab table for salaried individuals (Finance Act 2026): all 8 slabs, what changed this year, and worked examples so you can compute your own tax in minutes.
The full slab table
Pakistan taxes salary income progressively: each slice of your annual income is taxed at its own slab's rate. The table below covers salaried individuals for the tax year 1 July 2026 – 30 June 2027:
| Annual taxable income (PKR) | Tax |
|---|---|
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 1% of the amount above 600,000 |
| 1,200,001 – 2,200,000 | Rs 6,000 + 11% of the amount above 1,200,000 |
| 2,200,001 – 3,200,000 | Rs 116,000 + 20% of the amount above 2,200,000 |
| 3,200,001 – 4,100,000 | Rs 316,000 + 25% of the amount above 3,200,000 |
| 4,100,001 – 5,600,000 | Rs 541,000 + 29% of the amount above 4,100,000 |
| 5,600,001 – 7,000,000 | Rs 976,000 + 32% of the amount above 5,600,000 |
| Above 7,000,000 | Rs 1,424,000 + 35% of the amount above 7,000,000 |
How to read the table (the 30-second version)
The two numbers in each row work together. The fixed amount (e.g. Rs 116,000) is the total tax on all income below that slab — already worked out for you. The rate (e.g. 20%) applies only to the income inside the slab, i.e. the part above the slab's lower boundary.
Example — Rs 2,500,000 annual income sits in the 20% slab (2.2M–3.2M):
- Fixed tax on the first Rs 2,200,000 → Rs 116,000
- Plus 20% of (2,500,000 − 2,200,000) = 20% × 300,000 → Rs 60,000
- Total annual tax → Rs 176,000 (Rs 14,667/month)
The single biggest misunderstanding: your slab rate is not applied to your whole salary. Only the slice of income inside each slab gets that slab's rate.
Worked examples at common salaries
Three salaries, three full calculations — check your own against these:
Rs 100,000/month (Rs 1.2M/year)
1% of (1,200,000 − 600,000) = Rs 6,000/year → Rs 500/month. Take-home: Rs 99,500. Full breakdown here.
Rs 150,000/month (Rs 1.8M/year)
Rs 6,000 + 11% of (1,800,000 − 1,200,000) = 6,000 + 66,000 = Rs 72,000/year → Rs 6,000/month. Take-home: Rs 144,000. Full breakdown here.
Rs 300,000/month (Rs 3.6M/year)
Rs 316,000 + 25% of (3,600,000 − 3,200,000) = 316,000 + 100,000 = Rs 416,000/year → Rs 34,667/month. Take-home: Rs 265,333.
| Monthly salary | Annual income | Annual tax | Monthly deduction | Effective rate |
|---|---|---|---|---|
| Rs 100,000 | Rs 1,200,000 | Rs 6,000 | Rs 500 | 0.5% |
| Rs 150,000 | Rs 1,800,000 | Rs 72,000 | Rs 6,000 | 4.0% |
| Rs 300,000 | Rs 3,600,000 | Rs 416,000 | Rs 34,667 | 11.6% |
Compute any salary in 3 steps
You can tax any annual salary by hand with this routine:
- Find your slab — locate the row in the table above that contains your annual income.
- Take the fixed amount — that is the tax on everything below your slab, already calculated.
- Add the rate × the excess — multiply the slab's rate by (your income − the slab's lower boundary).
Try it on Rs 2,750,000: the 20% slab gives Rs 116,000 + 20% × (2,750,000 − 2,200,000) = 116,000 + 110,000 = Rs 226,000/year. Once you have done it twice, the table reads like a recipe rather than a puzzle — and our salary tax calculator double-checks the arithmetic for you.
What changed in FY 2026-27
Two changes from the Finance Act 2026 are worth knowing:
- The top 35% slab moved up. It now starts at Rs 7 million of annual income instead of Rs 4.1 million — so high earners between Rs 4.1M and Rs 7M pay less than before.
- No more surcharge on salary. The section 4AB surcharge was removed for salaried individuals entirely, simplifying the calculation: the table above is the complete picture.
A note on sources
These slabs are presented per independent cross-checking across multiple Pakistani tax-calculator sites, not copied from an official FBR circular page. They match the calculators and tables currently published for the Finance Act 2026. FBR's own site can be slow to publish clean slab tables, so if you are filing officially, confirm against the Finance Act 2026 text or a tax professional.
Key takeaways
- Up to Rs 600,000/year (Rs 50,000/month) is fully tax-free.
- Each slab's rate hits only the income inside that slab — never your whole salary.
- The top 35% rate now starts at Rs 7 million; the salary surcharge is gone.
- Slabs shown here are cross-checked from independent calculator sites — confirm officially before filing.
Frequently asked questions
What are the income tax slabs in Pakistan for 2026-27?
For salaried individuals: 0% up to Rs 600,000; 1% on Rs 600,001–1.2M; 11% on Rs 1.2M–2.2M; 20% on Rs 2.2M–3.2M; 25% on Rs 3.2M–4.1M; 29% on Rs 4.1M–5.6M; 32% on Rs 5.6M–7M; and 35% above Rs 7M — each rate applying only to income inside its slab.
What is the tax-free salary limit in Pakistan in 2026-27?
Annual salary up to Rs 600,000 (Rs 50,000 per month) is completely tax-free for salaried individuals. Tax starts at 1% on income above Rs 600,000.
What is the highest income tax slab for salaried individuals?
35%, now starting at Rs 7 million of annual income (up from Rs 4.1 million). The tax is Rs 1,424,000 plus 35% of the amount above Rs 7 million.
Is there any surcharge on salary income in FY 2026-27?
No. The Finance Act 2026 removed the section 4AB surcharge for salaried individuals entirely, so the slab rates above are the complete picture.
Do these slabs apply to business or freelance income?
No. These are the FBR slabs for salaried individuals only. Business, freelance, rental and other income follow different FBR tables.