If you earn a salary in Pakistan, income tax is usually deducted from your pay each month — but the amount depends on your annual taxable income and the slabs in force. This guide explains how to calculate salary tax in Pakistan for 2026-27, using the Finance Act 2026 slabs shown on our Salary Tax Calculator Pakistan 2026-27 page.
Tax year 2027 runs from 1 July 2026 to 30 June 2027. The surcharge has been abolished, so the calculation below uses only the slab rates.
What counts as salary income?
Your taxable salary is normally your gross annual pay — your monthly salary multiplied by 12 — before tax is deducted. If you receive other taxable income, allowances or benefits, they may also count, so the figure you use here should be your total taxable income for the year, not just your basic pay.
Salary tax slabs for 2026-27
The Finance Act 2026 slabs for salaried individuals are:
| Annual taxable income | Tax |
|---|---|
| Up to Rs 600,000 | Nil |
| Rs 600,001 to Rs 1,200,000 | 1% of the amount above Rs 600,000 |
| Rs 1,200,001 to Rs 2,200,000 | Rs 6,000 plus 11% of the amount above Rs 1,200,000 |
| Rs 2,200,001 to Rs 3,200,000 | Rs 116,000 plus 20% of the amount above Rs 2,200,000 |
| Rs 3,200,001 to Rs 4,100,000 | Rs 316,000 plus 25% of the amount above Rs 3,200,000 |
| Rs 4,100,001 to Rs 5,600,000 | Rs 541,000 plus 29% of the amount above Rs 4,100,000 |
| Rs 5,600,001 to Rs 7,000,000 | Rs 976,000 plus 32% of the amount above Rs 5,600,000 |
| Above Rs 7,000,000 | Rs 1,424,000 plus 35% of the amount above Rs 7,000,000 |
Only the part of your income that falls in a higher slab is taxed at that slab’s rate. The rest is taxed at the lower rates below it — that is why the fixed amounts in the table already include the tax on the lower slabs.
How to calculate your salary tax in four steps
- Work out your annual taxable income by multiplying your monthly salary by 12.
- Find the slab your annual income falls in.
- Apply the fixed amount for that slab, plus the stated rate on the amount above the slab’s lower limit.
- Divide the annual tax by 12 to get your monthly tax, and subtract it from your monthly salary to find your take-home pay.
Worked example: a salary of Rs 100,000 a month
Take a monthly salary of Rs 100,000. The annual salary is Rs 100,000 × 12 = Rs 1,200,000, which falls in the Rs 600,001 to Rs 1,200,000 slab.
The tax is 1% of the amount above Rs 600,000: 1% × Rs 600,000 = Rs 6,000 a year. That is Rs 500 a month, so the monthly take-home pay is Rs 100,000 − Rs 500 = Rs 99,500. The effective tax rate is 0.50% of the annual salary.
Try the same figures in the Salary Tax Calculator Pakistan 2026-27 and you will get the same answer: annual tax Rs 6,000, monthly tax Rs 500 and monthly take-home pay Rs 99,500.
Monthly tax and take-home pay
Your employer normally deducts tax in equal monthly instalments, so your monthly tax is simply your annual tax divided by 12. If your salary changes during the year — for example, after a pay rise — your annual income and your slab can change too, so work the calculation out again on the new annual figure.
What this calculation does not include
Please note: this is an estimate on taxable income only. It does not account for rebates, exemptions, deductions, tax already deducted at source, or other income you may have. Your actual tax bill can differ, so check the current FBR rules or ask a tax adviser if your case is not straightforward.
Try the free calculator
Use the Salary Tax Calculator Pakistan 2026-27 to work out your own monthly tax and take-home pay in seconds. Once you know your take-home pay, you can plan your household spending — for example, our guide to how to calculate your electricity bill in Pakistan shows how to estimate one of the biggest monthly bills, and the Electricity Bill Calculator Pakistan works it out for you.