Salaried income tax slabs in Pakistan (Tax Year 2027)
The table below is what the calculator uses. Tax is charged on annual taxable salary, then divided by twelve for the monthly deduction your employer makes.
| Annual taxable salary (Rs) | Tax payable |
|---|---|
| Up to 600,000 | Nil |
| 600,001 to 1,200,000 | 1% of the amount above 600,000 |
| 1,200,001 to 2,200,000 | Rs 6,000 + 11% of the amount above 1,200,000 |
| 2,200,001 to 3,200,000 | Rs 116,000 + 20% of the amount above 2,200,000 |
| 3,200,001 to 4,100,000 | Rs 316,000 + 25% of the amount above 3,200,000 |
| 4,100,001 to 5,600,000 | Rs 541,000 + 29% of the amount above 4,100,000 |
| 5,600,001 to 7,000,000 | Rs 976,000 + 32% of the amount above 5,600,000 |
| Above 7,000,000 | Rs 1,424,000 + 35% of the amount above 7,000,000 |
How the calculation works
Pakistan taxes salaried individuals on a progressive scale: only the part of your income that falls inside a higher band is taxed at that band's rate. If you earn Rs 150,000 a month, your annual salary is Rs 1,800,000. The first Rs 600,000 is nil, the next Rs 600,000 is taxed at 1% (Rs 6,000), and the remaining Rs 600,000 inside the 11% band adds Rs 66,000, so the annual tax is Rs 72,000, or Rs 6,000 a month. That is an effective rate of 4%, much lower than the 11% headline slab.
From Tax Year 2027 the extra 9% surcharge that previously applied to high earners has been abolished for salaried individuals, as reported after the FBR notification in July 2026. A person counts as salaried for these slabs when salary makes up more than 75% of total income. People with business income are taxed on a different table.
How to use this calculator
- Enter your gross taxable salary, including allowances your employer treats as taxable.
- Choose whether the figure is monthly or yearly.
- Read the monthly tax, annual tax, effective rate and net monthly pay. Results update as you type.
Tips for lowering a legal tax bill
Salaried taxpayers can reduce tax through lawful routes such as tax credits on approved charitable donations, contributions to approved pension schemes, and certain investment credits. Rules and limits change with each Finance Act, so check the current FBR guidance before relying on any figure. Keep receipts and file your return on time to stay on the Active Taxpayers List, which keeps withholding rates on bank and property transactions lower.
Worked examples
| Monthly salary | Annual | Annual tax | Monthly tax | Effective rate |
|---|---|---|---|---|
| Rs 50,000 | Rs 600,000 | Nil | Nil | 0% |
| Rs 100,000 | Rs 1,200,000 | Rs 6,000 | Rs 500 | 0.5% |
| Rs 200,000 | Rs 2,400,000 | Rs 156,000 | Rs 13,000 | 6.5% |
| Rs 500,000 | Rs 6,000,000 | Rs 1,104,000 | Rs 92,000 | 18.4% |
Example for Rs 200,000 a month: annual salary is Rs 2,400,000. That falls in the Rs 2,200,001 to 3,200,000 slab, so tax is Rs 116,000 plus 20% of the Rs 200,000 above Rs 2,200,000, which is Rs 40,000, giving Rs 156,000 a year or Rs 13,000 a month.
Common mistakes when estimating salary tax
- Applying the top rate to everything. Tax is progressive; only the income above each threshold is taxed at the higher rate.
- Using the wrong tax year. Tax Year 2027 covers July 2026 to June 2027. Slabs from earlier years are different.
- Forgetting bonuses and arrears. These count toward annual income and can move you into a higher slab for that part.
- Mixing gross and net. Enter the taxable gross salary, not what reaches your bank.
Filing and staying compliant
Employers deduct tax each month and issue a salary certificate. Even when your employer withholds the full amount, you may still need to file a return to appear on the Active Taxpayers List. Keep your CNIC, salary certificates and any tax-credit receipts together, and use the FBR's official portal for filing. Our salary calculator turns the tax into take-home pay, and the percentage calculator helps you compare raises. If a loan is part of the plan, check the instalment with the loan EMI calculator.
Frequently asked questions
What is the tax-free income limit for salaried people in Pakistan?
For Tax Year 2027 (July 2026 to June 2027) the first Rs 600,000 of annual taxable salary is taxed at nil, which is Rs 50,000 a month.
Is the surcharge still applied on salaried individuals?
No. The 9% surcharge was abolished for salaried individuals from Tax Year 2027, according to reports on the FBR notification. Confirm the latest position on fbr.gov.pk.
Does this calculator include allowances and bonuses?
It taxes whatever annual amount you enter. If you receive a bonus, add it to your yearly figure. For a monthly salary plus annual bonus, use the Salary Calculator.
Who counts as a salaried individual?
Generally a person who earns more than 75% of total taxable income from salary. Others fall under the non-salaried slabs.
Are the results official?
No. This is an estimate for planning. Your employer, FBR and your tax adviser determine the amount actually deducted or payable.