How salary income tax works in Pakistan
In Pakistan, income tax on salaries is charged using progressive slabs set each year in the federal budget and written into the First Schedule of the Income Tax Ordinance, 2001. Your employer deducts the tax from your pay every month under section 149 and deposits it with the Federal Board of Revenue (FBR). The tax year runs from 1 July to 30 June and is named after the year in which it ends, so July 2026 to June 2027 is Tax Year 2027.
Individuals count as “salaried” when salary makes up more than 75% of their taxable income. Salaried taxpayers have their own, lower slab table than business individuals. This calculator applies the salaried slabs to the taxable salary you enter and shows the monthly deduction you can expect.
How to use the calculator
- Choose the tax year. The latest year is selected by default.
- Enter your taxable salary and choose whether it is a monthly or yearly figure.
- Read the monthly and yearly tax, your take-home pay and your effective tax rate.
- Check the slab breakdown to see how much of your income falls in each band.
Salaried tax slabs for 2026-27 (Tax Year 2027)
| Annual taxable income | Tax |
|---|---|
| Rs 0 – 600,000 | No tax |
| Rs 600,001 – 1,200,000 | 1% of the amount above Rs 600,000 |
| Rs 1,200,001 – 2,200,000 | Rs 6,000 + 11% of the amount above Rs 1,200,000 |
| Rs 2,200,001 – 3,200,000 | Rs 116,000 + 20% of the amount above Rs 2,200,000 |
| Rs 3,200,001 – 4,100,000 | Rs 316,000 + 25% of the amount above Rs 3,200,000 |
| Rs 4,100,001 – 5,600,000 | Rs 541,000 + 29% of the amount above Rs 4,100,000 |
| Rs 5,600,001 – 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 |
No surcharge on high salaried incomes is applied for this tax year in our data. Figures were last checked on 24 October 2026. Always confirm the current slabs on the FBR website or with a tax adviser, because rates can change through a finance act or an amendment during the year.
Worked example
Suppose your monthly taxable salary is Rs 150,000, which is Rs 1,800,000 a year. Under the 2026-27 (Tax Year 2027) slabs, the first Rs 1,200,000 attracts a fixed Rs 6,000, and the remaining Rs 600,000 is taxed at 11%, which is Rs 66,000. The total is Rs 72,000 a year, or Rs 6,000 a month, leaving a take-home salary of about Rs 144,000 a month before other deductions such as provident fund or EOBI.
The calculator does not include tax credits for donations, pension fund contributions or Zakat paid, the reduced rate for some categories such as teachers and researchers, or tax on other income like rent or profit on savings. File your annual return through the FBR IRIS portal to claim credits and refunds.
More worked examples
Higher salary: a taxable salary of Rs 3,000,000 a year (Rs 250,000 a month) pays Rs 116,000 plus 20% of Rs 800,000 under the 2026-27 slabs, which is Rs 276,000 a year or Rs 23,000 a month.
Common mistakes to avoid
- Entering gross salary including exempt allowances. Enter taxable salary only.
- Using last year's slabs. Pick the correct tax year; slabs usually change with every budget.
- Forgetting other income. Rent and profit on savings are taxed separately. For other countries, use the general salary after tax calculator.
Sources and methodology
The calculations on this page follow these published standards and references. The code is covered by automated tests against known values.