Income tax slabs for salaried people, 2026-27
| Annual taxable salary | Tax |
|---|---|
| Rs 0 to Rs 600,000 | No tax |
| 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 + 11% of the amount above Rs 1,200,000 |
| Rs 2,200,001 to Rs 3,200,000 | Rs 116,000 + 20% of the amount above Rs 2,200,000 |
| Rs 3,200,001 to Rs 4,100,000 | Rs 316,000 + 25% of the amount above Rs 3,200,000 |
| Rs 4,100,001 to Rs 5,600,000 | Rs 541,000 + 29% of the amount above Rs 4,100,000 |
| Rs 5,600,001 to Rs 7,000,000 | Rs 976,000 + 32% of the amount above Rs 5,600,000 |
| Above Rs 7,000,000 | Rs 1,424,000 + 35% of the amount above Rs 7,000,000 |
Compared with 2025-26, the 23% slab drops to 20%, the 30% slab to 25%, and the old 35% slab is split into 29% and 32% bands, with 35% now starting at Rs 7 million. The 9% surcharge on salaries above Rs 10 million has been removed.
Tax at common salaries
| Monthly salary | Monthly tax 2026-27 | Monthly tax 2025-26 | Take-home |
|---|---|---|---|
| Rs 50,000 | Rs 0 | Rs 0 | Rs 50,000 |
| Rs 100,000 | Rs 500 | Rs 500 | Rs 99,500 |
| Rs 150,000 | Rs 6,000 | Rs 6,000 | Rs 144,000 |
| Rs 250,000 | Rs 23,000 | Rs 25,000 | Rs 227,000 |
| Rs 400,000 | Rs 62,000 | Rs 71,750 | Rs 338,000 |
| Rs 600,000 | Rs 124,500 | Rs 141,750 | Rs 475,500 |
How salary tax is calculated
- Work out your annual taxable salary (monthly salary × 12).
- Find the slab your annual salary falls in.
- Tax = the fixed amount for that slab + the slab rate × the amount above the slab's starting point.
- Divide by 12 for the monthly deduction your employer makes.
Example: a Rs 250,000 monthly salary is Rs 3,000,000 a year. That falls in the 20% slab: Rs 116,000 + 20% × (3,000,000 − 2,200,000) = Rs 276,000 a year, or Rs 23,000 a month. In 2025-26 the same salary paid Rs 25,000 a month.
Frequently asked questions
What is the tax-free salary limit in 2026-27?
Annual salary up to Rs 600,000 (Rs 50,000 a month) is not taxed in 2026-27, the same limit as 2025-26.
How much tax is due on a Rs 100,000 monthly salary?
Rs 100,000 a month is Rs 1,200,000 a year. Tax is 1% of the amount above Rs 600,000, which is Rs 6,000 a year or Rs 500 a month.
Was the 9% surcharge on high salaries removed?
Yes. FBR Circular No. 02 of 2026-27 confirms the Finance Act 2026 withdrew the 9% surcharge on salaried individuals with taxable income above Rs 10 million. The 10% surcharge still applies to other individuals. The 2025-26 comparison includes the 9% surcharge.
Is this calculated on gross or taxable salary?
Enter your taxable salary. Most allowances are taxable, but some items, such as certain medical allowances or reimbursements, can be exempt. Your payslip or employer can confirm the taxable figure.
Does this include provincial tax or Zakat deductions?
No. It covers federal income tax on salary only. Professional tax, EOBI and provident fund deductions are separate.
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Sources
- FBR Circular No. 02 of 2026-27: Finance Act 2026 salaried rates and withdrawal of the 9% surcharge (paras 7-8)
- FBR Circular No. 01 of 2025-26: Finance Act 2025 salaried rates (para 5), used for the comparison
- Income Tax Ordinance 2001, First Schedule, Part I, Division I, clause (2)
This calculator gives an estimate for guidance. It is not official advice. Rates and rules change, so confirm important decisions with the relevant authority or a qualified professional. See how we calculate, or report a mistake.