Finance Act 2026Currently in force
FBR Salary Tax Slabs 2026-27 for Salaried Individuals
Income tax rates applied to salaried individuals in Pakistan for Tax Year 2026-27, covering the period 1 July 2026 to 30 June 2027, as enacted by the Finance Act 2026 in Division I, Part I of the First Schedule to the Income Tax Ordinance 2001.
Calculate your 2026-27 taxTax slab rates for Tax Year 2026-27
Relief targeted at the middle brackets: the Rs 2.2M-3.2M rate falls to 20%, and two new bands (29% and 32%) soften the climb so the 35% top rate now begins above Rs 7,000,000. The 9% section 4AB surcharge on salary was also abolished, taking the top marginal impact from 38.15% back to a flat 35%.
Tax Year 2026-27
Finance Act 2026 · 8 slabs · no surcharge
| Annual taxable income | Rate | Tax payable |
|---|---|---|
| Up to PKR 600,000 | 0% | Nil |
| PKR 600,000 to PKR 1,200,000 | 1% | 1% of the amount exceeding PKR 600,000 |
| PKR 1,200,000 to PKR 2,200,000 | 11% | PKR 6,000 + 11% of the amount exceeding PKR 1,200,000 |
| PKR 2,200,000 to PKR 3,200,000 | 20% | PKR 116,000 + 20% of the amount exceeding PKR 2,200,000 |
| PKR 3,200,000 to PKR 4,100,000 | 25% | PKR 316,000 + 25% of the amount exceeding PKR 3,200,000 |
| PKR 4,100,000 to PKR 5,600,000 | 29% | PKR 541,000 + 29% of the amount exceeding PKR 4,100,000 |
| PKR 5,600,000 to PKR 7,000,000 | 32% | PKR 976,000 + 32% of the amount exceeding PKR 5,600,000 |
| Above PKR 7,000,000 | 35% | PKR 1,424,000 + 35% of the amount exceeding PKR 7,000,000 |
Key thresholds
- Exempt threshold: annual taxable income up to PKR 600,000 (PKR 50,000 a month) was taxed at zero per cent.
- Number of slabs: 8.
- Top marginal rate: 35%, applying above PKR 7,000,000 of taxable income.
- Section 4AB surcharge: none applied in this tax year.
Monthly salary tax table for 2026-27
Tax payable at common salary levels, with no exemptions or rebates claimed. Figures include the section 4AB surcharge where it applied.
| Monthly salary | Annual salary | Monthly tax | Annual tax | Net monthly | Effective rate |
|---|---|---|---|---|---|
| PKR 50,000 | PKR 600,000 | PKR 0 | PKR 0 | PKR 50,000 | 0.0% |
| PKR 100,000 | PKR 1,200,000 | PKR 500 | PKR 6,000 | PKR 99,500 | 0.5% |
| PKR 150,000 | PKR 1,800,000 | PKR 6,000 | PKR 72,000 | PKR 144,000 | 4.0% |
| PKR 200,000 | PKR 2,400,000 | PKR 13,000 | PKR 156,000 | PKR 187,000 | 6.5% |
| PKR 300,000 | PKR 3,600,000 | PKR 34,667 | PKR 416,000 | PKR 265,333 | 11.6% |
| PKR 500,000 | PKR 6,000,000 | PKR 92,000 | PKR 1,104,000 | PKR 408,000 | 18.4% |
| PKR 1,000,000 | PKR 12,000,000 | PKR 264,500 | PKR 3,174,000 | PKR 735,500 | 26.5% |