What are the income tax slabs in Pakistan for 2026-27?

For Tax Year 2026-27 (July 2026 - June 2027): Up to PKR 600,000 = 0%; PKR 600,001-1,200,000 = 1%; PKR 1,200,001-2,200,000 = 11%; PKR 2,200,001-3,200,000 = 20%; PKR 3,200,001-4,100,000 = 25%; PKR 4,100,001-5,600,000 = 29%; PKR 5,600,001-7,000,000 = 32%; Above PKR 7,000,000 = 35%. Source: Finance Bill 2026.

What changed in Budget 2026-27 for salary tax?

Four slabs were revised: 2.2M-3.2M dropped from 23% to 20%; 3.2M-4.1M dropped from 30% to 25%; 4.1M-5.6M dropped from 35% to 29% (new bracket); a new 32% bracket was added for 5.6M-7.0M. The 9-10% surcharge on income above PKR 10M was abolished from Tax Year 2027.

What is the tax-free salary threshold in Pakistan for 2026-27?

PKR 600,000 per year (PKR 50,000/month). Salaried individuals at or below this threshold pay no income tax.

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Salary Tax Calculator — Pakistan (FBR 2026-27)

Updated for Budget 2026-27. See your exact tax slab, monthly withholding, filer status impact, and comparison vs last year.

✅ Updated for Budget 2026-274 slabs revised June 12, 2026 · Surcharge abolished · Effective from July 1, 2026

Finance Bill 2026

📋 Income details

Income entered as

Gross monthly salary

ATL filer status

Filers enjoy lower withholding tax rates. Non-filers face additional withholding under Section 149.

✓ Your tax breakdown

Net take-home (monthly)

PKR 227,000

Monthly tax withheldPKR 23,000

Annual tax (FBR)PKR 276,000

Effective tax rate9.20%

Marginal slab rate20%

💰 Budget 2026-27 saving: PKR 24,000/yrvs last year's slabs

Income breakdown

TaxTake-home

2025-26 vs 2026-27 comparison

How your tax is calculated (slab-by-slab)

Income range	Amount in this slab	Rate	Tax for this slab
PKR 600K – 1200K	PKR 600,000	1%	PKR 6,000
PKR 1200K – 2200K	PKR 1,000,000	11%	PKR 110,000
PKR 2200K – 3200K	PKR 800,000	20%	PKR 160,000
Total annual tax			PKR 276,000

Source: Finance Bill 2026 (Budget 2026-27), FBR. Effective from July 1, 2026. Surcharge on income over PKR 10M abolished from Tax Year 2027.

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Salaried Tax Slabs (FY 2026-27)

Annual taxable income · effective 1 July 2026

FBR salaried income tax slabs for tax year 2026-27, showing annual taxable income bands and the tax payable in each band.
Annual taxable income	Rate	Tax payable
Up to PKR 600,000	0%	0% (tax free)
PKR 600,001 – 1,200,000	1%	1% of the amount exceeding PKR 600,000
PKR 1,200,001 – 2,200,000	11%	PKR 6,000 + 11% of the amount exceeding PKR 1,200,000
PKR 2,200,001 – 3,200,000	20%	PKR 116,000 + 20% of the amount exceeding PKR 2,200,000
PKR 3,200,001 – 4,100,000	25%	PKR 316,000 + 25% of the amount exceeding PKR 3,200,000
PKR 4,100,001 – 5,600,000	29%	PKR 541,000 + 29% of the amount exceeding PKR 4,100,000
PKR 5,600,001 – 7,000,000	32%	PKR 976,000 + 32% of the amount exceeding PKR 5,600,000
Above PKR 7,000,000	35%	PKR 1,424,000 + 35% of the amount exceeding PKR 7,000,000

Surcharge: The 9% surcharge under s.4AB has been abolished for salaried individuals. It still applies to non-salaried (business income) filers.

Applies to salaried individuals only (salary above 75% of total taxable income). Freelancers and business income are taxed under a separate schedule.

Source: Federal Board of Revenue (FBR) — Finance Act 2026 · Effective 1 July 2026 · Last verified 28 July 2026

FBData: Finance Bill 2026 (FBR) · Verified July 2026