If you earn a salary in Pakistan, your employer deducts income tax every month under a set of rates fixed by the Federal Board of Revenue (FBR). Knowing the slabs lets you check your payslip, plan your finances, and file an accurate return. This guide lays out the 2026-27 salary tax slabs in full, shows what you actually pay at each income level, and links you straight to our salary tax calculator for an instant figure.
Salary tax slabs 2026-27 (FBR)
These rates apply to income from salary for the tax year 2026-27 (1 July 2026 to 30 June 2027):
| Annual taxable income (PKR) | Tax on that income |
|---|---|
| Up to 600,000 | 0% - exempt |
| 600,001 - 1,200,000 | 1% of the amount over 600,000 |
| 1,200,001 - 2,200,000 | 6,000 + 11% of the amount over 1,200,000 |
| 2,200,001 - 3,200,000 | 116,000 + 23% of the amount over 2,200,000 |
| 3,200,001 - 4,100,000 | 346,000 + 30% of the amount over 3,200,000 |
| Above 4,100,000 | 616,000 + 35% of the amount over 4,100,000 |
A 9% surcharge applies on total taxable income where it exceeds PKR 10 million - charged on top of the slab tax above.
How much tax you actually pay
Because Pakistan uses a progressive system, only the slice of income inside each band is taxed at that band's rate - not your whole salary. Here is the annual tax payable at different salary levels:
Worked examples
Three salaried taxpayers, three outcomes under the 2026-27 slabs:
| Annual salary | How it is taxed | Annual tax | Effective rate |
|---|---|---|---|
| 1,500,000 | 1% on 600k band = 6,000; 11% on 300,000 = 33,000 | 39,000 | 2.6% |
| 3,000,000 | 116,000 + 23% on 800,000 = 184,000 | 300,000 | 10.0% |
| 5,000,000 | 616,000 + 35% on 900,000 = 315,000 | 931,000 | 18.6% |
Prefer not to do the maths? Our free salary tax calculator gives your exact figure - monthly and annual - in seconds.
What changed from 2024-25
The big relief landed in 2025-26 and carries into 2026-27. Low and middle earners pay far less than they did in 2024-25:
| Income band (PKR) | 2024-25 rate | 2026-27 rate |
|---|---|---|
| 600,001 - 1,200,000 | 5% | 1% |
| 1,200,001 - 2,200,000 | 15% | 11% |
| 2,200,001 - 3,200,000 | 25% | 23% |
| 3,200,001 - 4,100,000 | 30% | 30% |
| Above 4,100,000 | 35% | 35% |
For the full picture of the older rates, see our earlier guide to the FY 2024-25 income tax slabs.
Filer status changes your real tax cost
The slabs above are only part of the story. Whether you appear on the FBR's Active Taxpayers List (ATL) decides how much extra withholding tax you pay on banking, property and vehicle transactions - non-filers pay materially more. Read our filer vs non-filer guide to see the gap, and if you have not filed yet, our income tax return filing service handles salaried returns end to end.
Frequently asked questions
What is the income tax exemption limit for 2026-27?
Annual salary up to PKR 600,000 (PKR 50,000/month) is fully exempt - no tax is deducted below this level.
How much tax on a PKR 1,200,000 salary?
1% of the amount over 600,000 = 1% of 600,000 = PKR 6,000 for the year (about PKR 500/month).
What is the highest salary tax rate?
35% on the portion of income above PKR 4,100,000, plus a 9% surcharge where taxable income exceeds PKR 10 million.
Did the slabs change for 2026-27?
The 2026-27 salaried rates continue the 2025-26 relief - the low and middle bands stay well below their 2024-25 levels.
How do I calculate my exact tax?
Use our salary tax calculator - enter your salary and it applies the current slabs and surcharge automatically.