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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

Finance Act 2026 (Income Tax Ordinance 2001, First Schedule), as summarised by tax professionals; confirm with FBR.
Annual taxable income (Rs)Tax
Up to 600,000Nil
600,001 – 1,200,0001% of the amount over 600,000
1,200,001 – 2,200,0006,000 + 11% over 1,200,000
2,200,001 – 3,200,000116,000 + 20% over 2,200,000 (was 23%)
3,200,001 – 4,100,000316,000 + 25% over 3,200,000 (was 30%)
4,100,001 – 5,600,000541,000 + 29% over 4,100,000 (was 35%)
5,600,001 – 7,000,000976,000 + 32% over 5,600,000 (was 35%)
Above 7,000,0001,424,000 + 35% over 7,000,000

Monthly tax on common salaries

Calculated from the slabs above; 2025-26 includes the 9% surcharge above Rs 10 million a year.
Monthly salary (Rs)Tax per month 2026-27Tax per month 2025-26Saving per monthEffective rate 2026-27
50,0000000%
100,00050050000.5%
150,0006,0006,00004.0%
200,00013,00013,5005006.5%
250,00023,00025,0002,0009.2%
300,00034,66738,8334,16711.6%
400,00062,00071,7509,75015.5%
500,00092,000106,75014,75018.4%
1,000,000264,500307,10842,60826.5%

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.

Is income up to Rs 50,000 a month tax-free in 2026-27?
Yes. Rs 50,000 a month is Rs 600,000 a year, the top of the nil slab.
How much tax on Rs 100,000 monthly salary?
Rs 500 a month (Rs 6,000 a year), the same as in 2025-26.
When did the new rates start?
1 July 2026, the start of tax year 2027.

Sources

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