Salary Tax Calculator Pakistan 2026-27 (Tax Year 2027)
Calculate income tax on your salary for Tax Year 2027 (1 July 2026 to 30 June 2027) using the salaried rates enacted by the Finance Act 2026. Enter your monthly or annual taxable salary to see your annual tax, the monthly amount your employer should deduct, and your take-home pay.
Gross salary less any exempt allowances.
Salaried tax slabs – Tax Year 2027
| Annual taxable salary (Rs) | Tax (Rs) |
|---|
Monthly tax deduction
Rs 0
Enter your salary to calculate
- Annual taxable salary
- Rs 0
- Annual income tax
- Rs 0
- Monthly take-home
- Rs 0
- Annual take-home
- Rs 0
- Effective tax rate
- 0.00%
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Indicative estimate under Division I, Part I of the First Schedule to the Income Tax Ordinance, 2001, as amended by the Finance Act 2026. Salaried rates apply where salary exceeds 75% of taxable income. The estimate does not account for other income, tax credits, exempt allowances not entered or adjustable withholding taxes. For an exact computation, contact Tax Hub Consultants.
How salary tax is calculated for Tax Year 2027
Salaried individuals are taxed under Division I, Part I of the First Schedule to the Income Tax Ordinance, 2001, where salary is more than 75% of taxable income. Tax on annual taxable salary is a fixed amount plus a percentage of the income above the lower limit of the relevant slab.
Example: a monthly salary of Rs 150,000 gives annual taxable salary of Rs 1,800,000. This falls in the Rs 1,200,001 to Rs 2,200,000 slab, so tax is Rs 6,000 + 11% of (Rs 1,800,000 − Rs 1,200,000) = Rs 72,000 a year, or Rs 6,000 a month.
Your employer deducts tax every month under section 149 by estimating your salary for the full year and spreading the tax on it across the year. The final liability is settled in your annual return.
Salary tax table: Tax Year 2027
| Monthly salary (Rs) | Annual salary (Rs) | Annual tax (Rs) | Monthly tax (Rs) | Monthly take-home (Rs) | Effective rate |
|---|---|---|---|---|---|
| 50,000 | 600,000 | 0 | 0 | 50,000 | 0.00% |
| 100,000 | 1,200,000 | 6,000 | 500 | 99,500 | 0.50% |
| 150,000 | 1,800,000 | 72,000 | 6,000 | 144,000 | 4.00% |
| 200,000 | 2,400,000 | 156,000 | 13,000 | 187,000 | 6.50% |
| 250,000 | 3,000,000 | 276,000 | 23,000 | 227,000 | 9.20% |
| 300,000 | 3,600,000 | 416,000 | 34,667 | 265,333 | 11.56% |
| 500,000 | 6,000,000 | 1,104,000 | 92,000 | 408,000 | 18.40% |
| 1,000,000 | 12,000,000 | 3,174,000 | 264,500 | 735,500 | 26.45% |
What changed from Tax Year 2026
- Salaried slabs increased from six to eight.
- Lower rates for annual salary between Rs 2.2 million and Rs 7 million.
- The 35% rate now starts above Rs 7 million (previously above Rs 4.1 million).
- The 9% surcharge on salaried individuals with income above Rs 10 million has been abolished.
- The tax-free threshold remains Rs 600,000 a year (Rs 50,000 a month).
Who must file a return, and by when
A salaried individual whose taxable income exceeds Rs 600,000 must file an annual income tax return under section 114 of the Income Tax Ordinance, 2001. Certain property and vehicle owners must also file, whatever their income. The return for Tax Year 2027 is due by 30 September 2027 unless FBR extends the date. Filing keeps you on the Active Taxpayers List, which lowers withholding tax on many banking, property and vehicle transactions.
Frequently asked questions
Is a salary of Rs 50,000 a month taxable?
No. Annual taxable salary up to Rs 600,000 (Rs 50,000 a month) is not taxed in Tax Year 2027. Above that, tax starts at 1% of the amount over Rs 600,000.
Does filer or non-filer status change the tax on salary?
No. The salaried slabs are the same for everyone. Active Taxpayers List (ATL) status affects withholding tax on other transactions, such as property purchases and vehicle registration.
What if I also have business or rental income?
The salaried slabs apply only where salary is more than 75% of taxable income. Otherwise the slabs for non-salaried individuals apply, which are higher. Rental income is taxed separately. Contact us for a full computation.
Which allowances are exempt?
Most allowances form part of taxable salary. Some receipts are exempt or concessionary under the Second Schedule, for example medical allowance up to 10% of basic salary where free medical treatment is not provided by the employer. Enter your salary after removing exempt amounts.
Why is my employer’s deduction different from this calculator?
Employers adjust the monthly deduction for bonuses, arrears, salary changes during the year, tax already deducted and tax credits you claim, such as for donations or pension fund contributions. The calculator assumes the same salary for all twelve months.
Get your return filed
Tax Hub Consultants, Sahiwal
We prepare income tax returns and wealth statements for salaried individuals, and handle FBR notices and appeals. ACCA-qualified advisors, serving clients since 2015.
Phone (040) 2090543 · 5th Floor, Sahiwal Galleria, Girls College Road, Sahiwal · info@taxhubconsultants.com
Last updated 31 October 2026. Rates: FBR Withholding Tax Rate Card for Tax Year 2027, updated to 30 June 2026 as per the Finance Act 2026. This calculator gives an estimate and is not tax advice for your specific circumstances.