Work out the income tax on your salary for the 2026-27 tax year, using the slabs in the Finance Act 2026. Enter your salary and see the tax per month, per year and what you take home. Slabs last checked 26 October 2026.
| Slab | Rate | Income in slab (Rs) | Tax (Rs) |
|---|
This is for salaried individuals and uses the salaried slabs only. It does not include tax credits, exempt allowances or income from other sources. Your employer’s actual deduction can differ. Check the rules or ask a tax professional for your own case.
Salary tax slabs for 2026-27
These are the rates for tax year 2027, which covers income from 1 July 2026 to 30 June 2027. The Finance Act 2026 replaced the table for salaried individuals and it applies from 1 July 2026.
| Annual taxable income | Tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,000 to Rs 1,200,000 | 1% of the amount above Rs 600,000 |
| Rs 1,200,000 to Rs 2,200,000 | Rs 6,000 + 11% of the amount above Rs 1,200,000 |
| Rs 2,200,000 to Rs 3,200,000 | Rs 116,000 + 20% of the amount above Rs 2,200,000 |
| Rs 3,200,000 to Rs 4,100,000 | Rs 316,000 + 25% of the amount above Rs 3,200,000 |
| Rs 4,100,000 to Rs 5,600,000 | Rs 541,000 + 29% of the amount above Rs 4,100,000 |
| Rs 5,600,000 to Rs 7,000,000 | Rs 976,000 + 32% of the amount above Rs 5,600,000 |
| Above Rs 7,000,000 | Rs 1,424,000 + 35% of the amount above Rs 7,000,000 |
Income up to Rs 600,000 a year, which is Rs 50,000 a month, is taxed at 0%. The Act also replaces the old nine percent surcharge on income above Rs 10 million with the words “no surcharge shall be payable” (Gazette page 558).
Who these slabs apply to
The Income Tax Ordinance applies this table where an individual’s income under the head “salary” is more than 75 percent of their taxable income. People who earn mostly from business, a profession or other sources fall under a different table, which this calculator does not cover.
How the tax is worked out: an example
For a salary of Rs 200,000 a month, the taxable income is Rs 2,400,000 a year. Each slab taxes only the part of your income that falls inside it.
| Slab | Rate | Income in slab (Rs) | Tax (Rs) |
|---|---|---|---|
| Up to Rs 600,000 | 0% | 600,000 | 0 |
| Rs 600,000 to Rs 1,200,000 | 1% | 600,000 | 6,000 |
| Rs 1,200,000 to Rs 2,200,000 | 11% | 1,000,000 | 110,000 |
| Rs 2,200,000 to Rs 3,200,000 | 20% | 200,000 | 40,000 |
Monthly tax on common salaries
| Monthly salary (Rs) | Per year (Rs) | Tax per year (Rs) | Tax per month (Rs) | Pay after tax per month (Rs) |
|---|---|---|---|---|
| 50,000 | 600,000 | 0 | 0 | 50,000 |
| 75,000 | 900,000 | 3,000 | 250 | 74,750 |
| 100,000 | 1,200,000 | 6,000 | 500 | 99,500 |
| 150,000 | 1,800,000 | 72,000 | 6,000 | 144,000 |
| 200,000 | 2,400,000 | 156,000 | 13,000 | 187,000 |
| 250,000 | 3,000,000 | 276,000 | 23,000 | 227,000 |
| 300,000 | 3,600,000 | 416,000 | 34,667 | 265,333 |
| 400,000 | 4,800,000 | 744,000 | 62,000 | 338,000 |
| 500,000 | 6,000,000 | 1,104,000 | 92,000 | 408,000 |
| 750,000 | 9,000,000 | 2,124,000 | 177,000 | 573,000 |
| 1,000,000 | 12,000,000 | 3,174,000 | 264,500 | 735,500 |
What salary do you need for the take-home you want?
Job offers are often quoted as the amount you want in your account, and the calculator above works the other way round. Enter the monthly take-home pay you want and this one works out the gross salary that leaves you with it after salary tax.
| Take-home you want per month (Rs) | Gross salary needed per month (Rs) | Tax per month (Rs) | Average tax rate |
|---|---|---|---|
| 50,000 | 50,000 | 0 | 0.0% |
| 75,000 | 75,253 | 253 | 0.3% |
| 100,000 | 100,562 | 562 | 0.6% |
| 150,000 | 156,742 | 6,742 | 4.3% |
| 200,000 | 216,250 | 16,250 | 7.5% |
| 250,000 | 279,556 | 29,556 | 10.6% |
| 300,000 | 346,479 | 46,479 | 13.4% |
| 400,000 | 488,235 | 88,235 | 18.1% |
| 500,000 | 637,692 | 137,692 | 21.6% |
What a raise is worth after tax
A raise is taxed at your top slab rate, not your average rate, so a bigger salary keeps a smaller share of each extra rupee. The table shows how much of a monthly raise reaches your pocket.
| Current salary per month (Rs) | Raise of Rs 10,000: extra take-home (Rs) | Raise of Rs 25,000: extra take-home (Rs) | Raise of Rs 50,000: extra take-home (Rs) |
|---|---|---|---|
| 100,000 | 8,900 | 22,250 | 44,500 |
| 150,000 | 8,900 | 22,250 | 43,000 |
| 200,000 | 8,000 | 20,000 | 40,000 |
| 300,000 | 7,500 | 18,750 | 37,167 |
| 500,000 | 6,800 | 17,000 | 34,000 |
Bonus, overtime, zakat and tax credits
Bonus and overtime are taxed as salary. The Income Tax Ordinance lists overtime payment and bonus as part of “salary” (section 12(2)(a)), so they are added to your other salary and taxed at your slab rates. There is no separate flat rate. A bonus is not taxed at a lower rate because it is a bonus: it simply fills the next slab up. Because it lands at the top of your income, you pay your highest slab rate on it.
| Monthly salary (Rs) | Extra tax on a Rs 50,000 bonus (Rs) | Extra tax on a Rs 100,000 bonus (Rs) | Extra tax on a Rs 200,000 bonus (Rs) |
|---|---|---|---|
| 100,000 | 5,500 (11%) | 11,000 (11%) | 22,000 (11%) |
| 150,000 | 5,500 (11%) | 11,000 (11%) | 22,000 (11%) |
| 200,000 | 10,000 (20%) | 20,000 (20%) | 40,000 (20%) |
| 300,000 | 12,500 (25%) | 25,000 (25%) | 50,000 (25%) |
How your employer deducts it. Section 149(1) tells the employer to deduct tax at your average rate on your estimated income from salary for the whole tax year. When a bonus is paid, the estimate for the year goes up, so the deduction from that month’s pay is higher. The employer must also adjust for the pension and donation credits below, once you give documentary evidence.
Pension fund credit (section 63). If you pay into an approved pension fund under the Voluntary Pension System Rules, 2005, and hold a valid NTN or CNIC, you get a tax credit. The credit is your average tax rate multiplied by your contribution, where the contribution counted is the lesser of what you paid and 20 percent of your taxable income. A credit lowers your tax, and it cannot take the tax below zero.
| Pension contribution per year (Rs) | Amount counted (Rs) | Tax credit (Rs) | Tax per year after credit (Rs) | Tax per month (Rs) |
|---|---|---|---|---|
| 50,000 | 50,000 | 3,250 | 152,750 | 12,729 |
| 100,000 | 100,000 | 6,500 | 149,500 | 12,458 |
| 300,000 | 300,000 | 19,500 | 136,500 | 11,375 |
| 480,000 | 480,000 | 31,200 | 124,800 | 10,400 |
| 600,000 | 480,000 | 31,200 | 124,800 | 10,400 |
Donations (section 61). Gifts to approved bodies, such as government or university hospitals and schools, relief funds and non-profit organisations approved under the Ordinance, earn a credit worked out the same way, on the lesser of the gift or 30 percent of taxable income. Cash gifts count only if paid by crossed cheque drawn on a bank. The donation and pension credits together cannot take your tax below zero.
Zakat (section 60). Zakat paid under the Zakat and Ushr Ordinance, 1980 is a deductible allowance, which means it is taken off your income before the slabs are applied, not off the tax afterwards. An allowance you cannot use in a year is not refunded and cannot be carried forward or back. On Rs 200,000 a month, Rs 100,000 of such zakat lowers the tax from Rs 156,000 to Rs 136,000, a saving of Rs 20,000. The Ordinance names zakat paid under that law, which is the zakat deducted from bank deposits by the government’s system. If you pay zakat directly to people or charities yourself, ask a tax adviser whether it qualifies before you claim it.
“No adjustments” means salary plus bonus with no zakat allowance and no credits. This does not model the combined cap for employment pension schemes, tax credits for other purposes, or exempt allowances.
How your tax changed from 2025-26
The Finance Act 2026 cut the 23 percent slab to 20 percent and the 30 percent slab to 25 percent, replaced the 35 percent slab above Rs 4.1 million with new 29 and 32 percent slabs, moved the 35 percent rate up to income above Rs 7 million, and ended the surcharge. A salary of Rs 200,000 a month pays Rs 6,000 less tax a year than under the 2025-26 slabs, and Rs 500,000 a month pays Rs 177,000 less. Salaries up to Rs 2.2 million a year (about Rs 183,000 a month) pay the same tax in both years.
| Monthly salary (Rs) | Tax 2025-26 per year (Rs) | Tax 2026-27 per year (Rs) | Change per year (Rs) | Per month (Rs) |
|---|---|---|---|---|
| 75,000 | 3,000 | 3,000 | 0 | 0 |
| 100,000 | 6,000 | 6,000 | 0 | 0 |
| 150,000 | 72,000 | 72,000 | 0 | 0 |
| 200,000 | 162,000 | 156,000 | -6,000 | 500 |
| 250,000 | 300,000 | 276,000 | -24,000 | 2,000 |
| 300,000 | 466,000 | 416,000 | -50,000 | 4,167 |
| 400,000 | 861,000 | 744,000 | -117,000 | 9,750 |
| 500,000 | 1,281,000 | 1,104,000 | -177,000 | 14,750 |
| 750,000 | 2,331,000 | 2,124,000 | -207,000 | 17,250 |
| 1,000,000 | 3,685,290 | 3,174,000 | -511,290 | 42,608 |
How much of your salary goes in tax
Questions
What is the tax-free limit for salaried people in 2026-27?
Taxable income up to Rs 600,000 a year is taxed at 0% under the Finance Act 2026 table. Above that, the first slab is 1% of the amount over Rs 600,000.
Is there a surcharge on high salaries?
The Finance Act 2026 removes the nine percent surcharge that applied to income above Rs 10 million. The calculator adds no surcharge.
Why can my employer’s deduction differ from this result?
Employers estimate your full-year taxable salary and spread the tax over the months. Tax credits, exempt allowances, a bonus paid late in the year and other income can all change the final amount. This calculator shows the tax on the figure you enter.
Sources
- Income Tax Ordinance, 2001, amended up to 30 June 2026 on the FBR website: section 12 (what counts as salary), section 60 (zakat), section 61 (donations), section 63 (pension fund credit) and section 149 (employer deduction).
- Mercans: Finance Act 2025 changes to tax rates and surcharge: the 2025-26 slabs used in the comparison.
- Finance Act 2026 on the FBR website: slab table on Gazette page 580, surcharge change on page 558.
- Income Tax Ordinance, 2001 on the FBR website: First Schedule, Part I, Division I, clause (2), for who the salaried table applies to.
Finance Pakistan is not a government site and this is not tax advice. Figures come from the Finance Act 2026 as published by the FBR. Check the official text or a tax professional before you rely on a result.