The short answer
The first Rs. 600,000 of salary is tax free in both years. What moved is the middle and the top: the rate on income between Rs. 2,200,000 and Rs. 3,200,000 went from 23% to 20%, the top rate of 35% now starts above Rs. 7,000,000 instead of Rs. 4,100,000, and the 9% surcharge on high salaries no longer applies.
In money terms, a monthly salary of Rs. 1,000,000 pays Rs. 42,608 less a month in 2026-27 than in 2025-26. At Rs. 50,000, Rs. 100,000, Rs. 150,000 the tax is the same in both years. Work out your own figure with the salary tax calculator, or read the 2025-26 version on the 2025-26 calculator page.
The slabs, 2025-26 and 2026-27
| 2025-26 | 2026-27 |
|---|---|
| Rs. 0 to Rs. 600,000: 0% | Rs. 0 to Rs. 600,000: 0% |
| Rs. 600,000 to Rs. 1,200,000: 1% | Rs. 600,000 to Rs. 1,200,000: 1% |
| Rs. 1,200,000 to Rs. 2,200,000: 11% | Rs. 1,200,000 to Rs. 2,200,000: 11% |
| Rs. 2,200,000 to Rs. 3,200,000: 23% | Rs. 2,200,000 to Rs. 3,200,000: 20% |
| Rs. 3,200,000 to Rs. 4,100,000: 30% | Rs. 3,200,000 to Rs. 4,100,000: 25% |
| Above Rs. 4,100,000: 35% | Rs. 4,100,000 to Rs. 5,600,000: 29% |
| — | Rs. 5,600,000 to Rs. 7,000,000: 32% |
| — | Above Rs. 7,000,000: 35% |
Full tables with the monthly view are on the 2025-26 slabs and 2026-27 slabs pages.
The surcharge on high salaries
In 2025-26 a section 4AB surcharge of 9% was added to the tax of salaried people with taxable income above Rs. 10,000,000. For 2026-27 our tables apply no surcharge on salary. This changes the top of the scale most: without it the highest marginal rate is the slab rate itself.
Monthly tax at common salaries
| Monthly salary | 2025-26, a month | 2026-27, a month | Difference, a year | Effective rate now |
|---|---|---|---|---|
| Rs. 50,000 | 0 | 0 | No change | 0.0% |
| Rs. 100,000 | 500 | 500 | No change | 0.5% |
| Rs. 150,000 | 6,000 | 6,000 | No change | 4.0% |
| Rs. 200,000 | 13,500 | 13,000 | 6,000 less | 6.5% |
| Rs. 300,000 | 38,833 | 34,667 | 50,000 less | 11.6% |
| Rs. 500,000 | 106,750 | 92,000 | 177,000 less | 18.4% |
| Rs. 1,000,000 | 307,108 | 264,500 | 511,290 less | 26.5% |
Each salary links to its own page with the slab-by-slab working.
What did not change
- The rate on 3 of the bands is the same in both years (0% from Rs. 0; 1% from Rs. 600,000; 11% from Rs. 1,200,000).
- The reliefs we model are the same: the medical allowance exemption of 10%, the pension (VPS) contribution cap of 20% of taxable income, and the EOBI contribution.
- Business and freelance income use a different table. See the business tax calculator and the freelancer tax calculator.
Sources and updates
Income Tax Ordinance 2001, Division I of Part I of the First Schedule, as amended by the Finance Act 2025 and the Finance Act 2026; section 4AB (surcharge). Figures are computed from the slab tables on this site.
- Finance Act 2026 — Federal Board of Revenue (FBR). The Act that set the 2026-27 salary slabs, on FBR’s Budget 2026-27 page.
- Income Tax Ordinance 2001, amended up to 30 June 2026 — Federal Board of Revenue (FBR). The full text of the law, including the First Schedule rate tables (PDF).
- Acts, Ordinances and Rules — Federal Board of Revenue (FBR). FBR’s index of the tax laws, ordinances and rules it administers.
- First published
- Last updated
- Tax rates last reviewed
- Source links last checked
Tax Pakistan is an independent site, not part of FBR or any government body. Where a figure matters — a return, a refund claim, a dispute — confirm it against the official source or with a tax adviser.