Salary tax calculator 2026-27: your monthly tax under the new slabs

This salary tax calculator uses FBR’s 2026-27 slabs for salaried people (tax year 2027, July 2026 to June 2027). Salary up to Rs 50,000 a month is tax-free. Rs 1.5 lakh a month pays Rs 6,000 a month, the same as last year. Rs 3 lakh a month pays Rs 34,667, down from Rs 38,833, because the Finance Act 2026 cut the rates above Rs 22 lakh a year.

What are the salary tax slabs for 2026-27?

These are the rates in the First Schedule of the Income Tax Ordinance, as amended up to 30 June 2026, for anyone whose salary is more than 75% of their taxable income. FBR’s withholding rate card for tax year 2027 lists the same eight slabs. For a plain list with more detail, see income tax slabs for 2026-27.

Each rate applies only to the part of your salary inside that slab. Crossing into a higher slab never makes your whole salary taxed at the higher rate.

How much tax on salary per month in Pakistan?

Worked out from the slabs above, for a salary that stays the same all year with no bonus or tax-free allowance.

The 2025-26 figure for Rs 10 lakh a month includes the 9% surcharge that applied then above Rs 1 crore a year. These figures match KPMG’s comparison of the old and new tax at every salary KPMG lists.

How does the calculator work out your tax?

Section 149 of the Ordinance tells your employer to deduct tax from each salary payment at your average rate. That rate comes from your estimated salary for the whole tax year. The calculator does the same: it spreads the year’s tax evenly over 12 months. How your employer handles a mid-year raise or a bonus depends on its payroll practice, so ask HR.

The “average rate” in the result is your year’s tax divided by your taxable salary. The “top slab” is the rate on your last rupee, which is the rate a raise is taxed at.

What counts as taxable salary?

Under section 12, salary is more than basic pay. It includes:

• pay, leave pay, overtime, bonus, commission, fees and gratuity
• perks, whether paid in cash or not
• allowances such as house rent, utilities, cost of living, education, entertainment and travel

A fixed allowance paid every month, or one set as a percentage of salary, counts as salary even if it is called a travel allowance. Add these to the figure you enter.

One common allowance is tax-free. Medical allowance up to 10% of basic pay is exempt under clause 139 of the Second Schedule, but only if your employer doesn’t give free medical treatment or pay back your medical bills. The calculator’s optional box takes this amount and removes it before applying the slabs.

What changed from 2025-26?

Finance Minister Muhammad Aurangzeb announced the cuts in the budget speech on 12 June 2026, as reported by APP, The News and Dawn. The Finance Act 2026 kept them, and FBR’s Ordinance amended to 30 June 2026 prints the new table.

• Four rates cut. 23% became 20%, 30% became 25%, and 35% became 29% or 32%, depending on the slab.
• 35% starts later. The top rate now starts above Rs 70 lakh a year instead of Rs 41 lakh. There are now eight slabs instead of six.
• No surcharge on salary. Section 4AB added a 10% surcharge for incomes above Rs 1 crore in 2024. The Finance Act 2025 cut it to 9% for salaried people, and the Finance Act 2026 removed it for them.
• Nothing changed up to Rs 22 lakh a year (about Rs 1.83 lakh a month). If you earn less than that, your tax is the same as last year.

KPMG puts the saving at Rs 30,000 a year on Rs 32 lakh, Rs 1,65,000 on Rs 56 lakh and Rs 5,11,290 on Rs 1.2 crore.

When don’t these slabs apply?

• Pension from a former employer has its own rate: 0% up to Rs 1 crore a year and 5% on the amount above that. FBR’s rate card adds a 10% surcharge on that tax if you are under 70.
• Teachers and researchers at recognised non-profit institutions used to get 25% off their tax. That reduction ended after tax year 2025, so the calculator doesn’t include it.

Can you lower the tax your employer deducts?

Yes, in two ways that section 149 names. Your employer must adjust the deduction for tax credits under section 61 (charitable donations) and section 63 (contributions to an approved pension fund under the Voluntary Pension System), once you give proof. See pension funds in Pakistan.

Your employer must also adjust for tax already taken from you under other heads during the year. Ask your HR or payroll team what proof they need.

Tax taken from salary is adjustable, not final: it counts towards the tax worked out on your return, which is due by 30 September after the tax year ends. See how to file your income tax return and filer vs non-filer. FBR’s rate card shows no separate salary rate for people missing from the Active Taxpayers List (ATL).

More guides: income tax slabs 2026-27 · how to become a filer · how to check your filer status · pension funds · life insurance · investment options compared