Pakistan's salary tax rates changed for FY 2026-27, effective 1 July 2026. Here's what the new slabs actually mean for your paycheck, with worked examples.
If you're salaried in Pakistan, income tax comes straight off your monthly pay before you ever see it. The government updated the slab structure for FY 2026-27, and the changes are genuinely good news for most salaried people — rates dropped in several brackets, and a 9% surcharge that used to apply above Rs 1 crore has been removed entirely for salaried individuals.
The Finance Act 2026 restructured the middle and upper tax brackets. The old 23% and 30% rates were cut to 20% and 25%. The top 35% bracket, which previously started at Rs 4.1 million, was split into three narrower bands — 29%, 32%, and 35% — with the full 35% rate now only kicking in above Rs 7 million a year, up from Rs 4.1 million before. The 9% surcharge on high earners is gone.
| Annual taxable income | Rate | Fixed amount |
|---|---|---|
| Up to Rs 600,000 | 0% | — |
| Rs 600,001 – 1,200,000 | 1% | — |
| Rs 1,200,001 – 2,200,000 | 11% | Rs 6,000 |
| Rs 2,200,001 – 3,200,000 | 20% | Rs 116,000 |
| Rs 3,200,001 – 4,100,000 | 25% | Rs 316,000 |
| Rs 4,100,001 – 5,600,000 | 29% | Rs 541,000 |
| Rs 5,600,001 – 7,000,000 | 32% | Rs 976,000 |
| Above Rs 7,000,000 | 35% | Rs 1,424,000 |
How to read this: tax is progressive — each rate only applies to the income within that bracket, not your whole salary. The "fixed amount" is the tax already owed from lower brackets; add it to the top bracket's calculation.
Say your annual salary is Rs 3,600,000 (Rs 300,000 a month). That falls in the Rs 3,200,001–4,100,000 bracket, taxed at 25% with a fixed amount of Rs 316,000.
Skip the manual math — enter your salary and get your exact tax and take-home pay instantly.
Open the tax calculator →Based on the Finance Act 2026 salaried tax slabs, effective 1 July 2026. Verify against current FBR notifications for anything filing-related, and consult a tax professional for your specific situation.