FBR salary tax slabs 2026-27: what changed and your new take-home
What happened
The Finance Bill 2026 revised four salary tax slabs for Tax Year 2026-27 and abolished the 9-10% surcharge that previously applied to income above PKR 10 million. The tax-free threshold stays at PKR 600,000/year (PKR 50,000/month).
Why it matters
The revised middle and upper-middle slabs mean lower monthly withholding for a large band of salaried professionals. If you sit in the PKR 2.2m-5.6m annual range, your take-home changed the day the new slabs took effect.
Who is affected
- Salaried employees earning above PKR 600,000/year
- Mid-career professionals in the PKR 2.2m-5.6m band, who saw the largest cuts
- High earners previously paying the abolished surcharge
| PKR 2.2m-3.2m slab | 23% | 20% | |
| PKR 3.2m-4.1m slab | 30% | 25% | |
| PKR 4.1m-5.6m slab | 35% | 29% | |
| Surcharge above PKR 10m | 9-10% | Abolished |
Lower slabs lift monthly take-home for the middle band
Illustrative only — your exact figure depends on allowances and tax credits
| Item | Before | After |
|---|---|---|
| Tax-free threshold | PKR 600,000/yr | PKR 600,000/yr |
| PKR 3.2m-4.1m marginal rate | 30% | 25%▼ −5 pts |
| High-income surcharge | 9-10% | 0% |
Illustrative estimate based on Finance Bill 2026 slabs. Not tax advice — confirm with a tax professional for your situation.
Pakistan salary and freelancer tax slabs verified against the Finance Bill 2026 presented June 12, 2026.
Last verified: 26 July 2026 · About our data
Frequently asked questions
What are the income tax slabs in Pakistan for 2026-27?
For Tax Year 2026-27: up to PKR 600,000 = 0%; 600,001-1,200,000 = 1%; 1,200,001-2,200,000 = 11%; 2,200,001-3,200,000 = 20%; 3,200,001-4,100,000 = 25%; 4,100,001-5,600,000 = 29%; 5,600,001-7,000,000 = 32%; above 7,000,000 = 35%. Source: Finance Bill 2026.
What changed in Budget 2026-27 for salary tax?
Four slabs were cut: 2.2m-3.2m from 23% to 20%; 3.2m-4.1m from 30% to 25%; 4.1m-5.6m from 35% to 29%; and a 32% bracket was set for 5.6m-7.0m. The 9-10% surcharge on income above PKR 10m was abolished.
What is the tax-free salary threshold for 2026-27?
PKR 600,000 per year (PKR 50,000 per month). Salaried individuals at or below this pay no income tax.