Salary Tax Slabs 2026-27 Pakistan: Rates & Monthly Tax
For 2026-27 (tax year 2027, 1 July 2026 to 30 June 2027), salaried income up to Rs 600,000 a year is tax-free. Rates rise from 1% to 35%, and the Finance Act 2026 cut the rates for incomes above Rs 2.2 million and removed the 9% surcharge on salaried people earning over Rs 10 million.
The 2026-27 salaried slabs
| Annual taxable income (Rs) | Tax |
|---|---|
| Up to 600,000 | Nil |
| 600,001 – 1,200,000 | 1% of the amount over 600,000 |
| 1,200,001 – 2,200,000 | 6,000 + 11% over 1,200,000 |
| 2,200,001 – 3,200,000 | 116,000 + 20% over 2,200,000 (was 23%) |
| 3,200,001 – 4,100,000 | 316,000 + 25% over 3,200,000 (was 30%) |
| 4,100,001 – 5,600,000 | 541,000 + 29% over 4,100,000 (was 35%) |
| 5,600,001 – 7,000,000 | 976,000 + 32% over 5,600,000 (was 35%) |
| Above 7,000,000 | 1,424,000 + 35% over 7,000,000 |
Monthly tax on common salaries
| Monthly salary (Rs) | Tax per month 2026-27 | Tax per month 2025-26 | Saving per month | Effective rate 2026-27 |
|---|---|---|---|---|
| 50,000 | 0 | 0 | 0 | 0% |
| 100,000 | 500 | 500 | 0 | 0.5% |
| 150,000 | 6,000 | 6,000 | 0 | 4.0% |
| 200,000 | 13,000 | 13,500 | 500 | 6.5% |
| 250,000 | 23,000 | 25,000 | 2,000 | 9.2% |
| 300,000 | 34,667 | 38,833 | 4,167 | 11.6% |
| 400,000 | 62,000 | 71,750 | 9,750 | 15.5% |
| 500,000 | 92,000 | 106,750 | 14,750 | 18.4% |
| 1,000,000 | 264,500 | 307,108 | 42,608 | 26.5% |
How the calculation works
Annual tax = the fixed amount of your slab + the slab rate × the part of your income above the slab’s start. Example: Rs 200,000 a month = Rs 2,400,000 a year, in the Rs 2.2–3.2 million slab: 116,000 + 20% × 200,000 = Rs 156,000 a year, Rs 13,000 a month.
Who counts as salaried
You are taxed as salaried when salary is more than 75% of your taxable income. Otherwise the non-salaried rates apply, which are higher and still carry a surcharge above Rs 10 million. Your employer withholds tax every month; your annual return settles the final amount with other income and tax credits.