Free tool: Salary Tax Calculator 2026-27 – type your monthly salary and see the monthly and yearly income tax under the Finance Act 2026 slabs, with a 2025-26 comparison.
Last Updated: 1 November 2026
Author: Muhammad Imran – Educativz.com
Source: Finance Act 2026 (FBR PDF; Gazette of Pakistan, 26 June 2026), section 44, First Schedule, Division I, Part I
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If you are a salaried person in Pakistan, your employer has been deducting tax from your pay since July 2026 under new slabs. This guide (updated November 2026) gives the income tax slabs for 2026-27 (tax year 2027) for salaried persons exactly as printed in the Finance Act 2026, shows monthly examples from Rs 50,000 to Rs 500,000, and explains what changed compared with 2025-26. The slab table below was copied from the Act itself, not from a news article.
In this guide
Income tax slabs 2026-27 for salaried persons
These slabs apply to taxable income of a salaried individual for the year from 1 July 2026 to 30 June 2027. “Taxable income” means yearly salary after any exempt portion; it is not simply your gross pay.
| Taxable yearly income (Rs) | Tax |
| Up to 600,000 | 0% |
| 600,001 to 1,200,000 | 1% of the amount over 600,000 |
| 1,200,001 to 2,200,000 | Rs 6,000 + 11% of the amount over 1,200,000 |
| 2,200,001 to 3,200,000 | Rs 116,000 + 20% of the amount over 2,200,000 |
| 3,200,001 to 4,100,000 | Rs 316,000 + 25% of the amount over 3,200,000 |
| 4,100,001 to 5,600,000 | Rs 541,000 + 29% of the amount over 4,100,000 |
| 5,600,001 to 7,000,000 | Rs 976,000 + 32% of the amount over 5,600,000 |
| Above 7,000,000 | Rs 1,424,000 + 35% of the amount over 7,000,000 |
Source: Finance Act 2026 PDF on the FBR website, Gazette 26 June 2026, section 44, First Schedule, Division I, Part I.
How to calculate your tax (3 steps)
- Step 1: multiply the monthly taxable salary by 12 to get the yearly income.
- Step 2: find your row in the table and apply the fixed amount plus the percentage on the part above the lower limit.
- Step 3: divide by 12 for the monthly deduction.
Example: monthly Rs 200,000 gives Rs 2,400,000 a year. That falls in the 2,200,001 to 3,200,000 row: 116,000 + 20% of (2,400,000 − 2,200,000) = 116,000 + 40,000 = Rs 156,000 a year, or Rs 13,000 a month.
Monthly examples
| Monthly salary (Rs) | Yearly (Rs) | Yearly tax 2026-27 (Rs) | Monthly tax (Rs) |
| 50,000 | 600,000 | 0 | 0 |
| 75,000 | 900,000 | 3,000 | 250 |
| 100,000 | 1,200,000 | 6,000 | 500 |
| 150,000 | 1,800,000 | 72,000 | 6,000 |
| 200,000 | 2,400,000 | 156,000 | 13,000 |
| 300,000 | 3,600,000 | 416,000 | 34,667 |
| 500,000 | 6,000,000 | 1,104,000 | 92,000 |
You do not need to do this by hand: the free salary tax calculator does the same maths and also draws your position on the slab staircase. If you want to see how a raise changes your take-home pay, our Budget 2026 salary increase calculator and judiciary salary calculator cover pay scales.
What changed from 2025-26
The tax-free limit stays at Rs 600,000 and the 1% and 11% slabs are unchanged. The relief is in the middle and top slabs: in 2025-26 the rates were 23% (Rs 2.2m to 3.2m), 30% (Rs 3.2m to 4.1m) and 35% on everything above Rs 4.1m. The Finance Act 2026 replaces that with 20%, 25%, 29%, 32% and a 35% rate that starts only above Rs 7m.
| Taxable yearly income | 2025-26 rate on the slab | 2026-27 rate on the slab |
| 600,001 to 1,200,000 | 1% | 1% |
| 1,200,001 to 2,200,000 | 11% | 11% |
| 2,200,001 to 3,200,000 | 23% | 20% |
| 3,200,001 to 4,100,000 | 30% | 25% |
| 4,100,001 to 5,600,000 | 35% | 29% |
| 5,600,001 to 7,000,000 | 35% | 32% |
| Above 7,000,000 | 35% | 35% |
What this means in rupees, on the same salary (our calculation from the two slab sets):
| Monthly salary (Rs) | 2025-26 yearly tax (Rs) | 2026-27 yearly tax (Rs) | Saving per year (Rs) |
| 150,000 | 72,000 | 72,000 | 0 |
| 200,000 | 162,000 | 156,000 | 6,000 |
| 300,000 | 466,000 | 416,000 | 50,000 |
| 500,000 | 1,281,000 | 1,104,000 | 177,000 |
So if you earn up to about Rs 150,000 a month, nothing changes; the more you earn above Rs 183,000 a month, the bigger the saving.
Things the table does not cover
- Exempt allowances and deductions: only taxable salary goes into the table. Check your payslip for what your employer treats as taxable.
- Other income: rent, profit on savings or business income can be taxed under different rules.
- Surcharge and special cases: the Act has other provisions (for example for very high incomes); this guide only covers the salaried slab table.
- Your employer’s actual deduction may differ slightly if your salary changes during the year, because tax is adjusted on the full-year estimate.
Honest gap: this is general information from the Finance Act text, not tax advice. For rebates, filing or special cases, check with FBR or a registered tax advisor.
Karna / Nahi karna
Karna: compare your payslip tax with the table; keep your salary certificate and file your return on time; use the official FBR PDF for exact wording.
Nahi karna: do not rely on social media posts that show different slabs; do not pay “tax agents” for refunds you cannot verify.
FAQs
What is the tax-free income limit for salaried persons in 2026-27 (November 2026)?
Rs 600,000 a year, which is Rs 50,000 a month. Income above that is taxed under the slabs in the Finance Act 2026.
What is the highest income tax rate for salaried persons in 2026-27?
35% on taxable income above Rs 7,000,000 a year (plus Rs 1,424,000 on the first Rs 7,000,000).
How much tax is deducted on a Rs 100,000 monthly salary?
Rs 500 a month (Rs 6,000 a year) under the 2026-27 slabs.
How much tax is deducted on a Rs 300,000 monthly salary?
About Rs 34,667 a month (Rs 416,000 a year).
Did tax decrease compared with 2025-26?
Yes for yearly incomes above Rs 2.2 million, because the 23%, 30% and 35% rates were replaced by lower slab rates. Below that nothing changed.
Is there a free tool to calculate it?
Yes, the Educativz Salary Tax Calculator 2026-27 works in your browser and compares both years.
Type your salary and get your exact monthly tax in seconds.
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