Work out your salaried income tax for any tax year from 2019 to 2027. Enter your salary monthly or yearly, pick a tax year, and see your monthly tax, your take-home pay, your effective rate and the full slab-by-slab breakdown behind the figure.
How this was worked out
| Income band | Rate | Taxed amount | Tax |
|---|
Compare this salary across tax years
| Tax year | Yearly tax | Monthly tax | Effective rate | vs. selected |
|---|
Rates last verified against TY2027 verified against the Finance Act 2026 (Gazette of Pakistan Extraordinary, 26 June 2026). Earlier years: PwC Tax Summaries, professional-firm Finance Act commentary, and contemporaneous reporting.
General information only. This calculator covers salaried income tax and does not account for tax credits, allowances, bonuses taxed separately, or any non-salary income. It is not a substitute for professional advice. Confirm your position with the FBR or a registered tax practitioner.
Which tax year should you pick?
This trips up more people than the arithmetic does, because two tax years are live at once and they are not the same thing.
- Filing a return right now? That is tax year 2026 — the year that ran from 1 July 2025 to 30 June 2026. The deadline for individuals and AOPs is 30 September 2026.
- Checking the deduction on this month’s payslip? That is tax year 2027, which began on 1 July 2026 and runs to 30 June 2027, under the Finance Act 2026.
A tax year in Pakistan is named after the calendar year it ends in, so tax year 2027 is mostly spent in 2026. Pick the wrong one and every number will be wrong by a slab.
Salary tax slabs for tax year 2027
These are the rates the calculator applies when you select tax year 2027, taken from the Finance Act 2026:
| Yearly taxable salary | Rate on the amount in this band | Tax at the top of the band |
|---|---|---|
| Up to Rs 600,000 | 0% | Rs 0 |
| Rs 600,001 – 1,200,000 | 1% | Rs 6,000 |
| Rs 1,200,001 – 2,200,000 | 11% | Rs 116,000 |
| Rs 2,200,001 – 3,200,000 | 20% | Rs 316,000 |
| Rs 3,200,001 – 4,100,000 | 25% | Rs 541,000 |
| Rs 4,100,001 – 5,600,000 | 29% | Rs 976,000 |
| Rs 5,600,001 – 7,000,000 | 32% | Rs 1,424,000 |
| Above Rs 7,000,000 | 35% | — |
Your employer is required to deduct this at source every month under section 149 of the Income Tax Ordinance 2001, which is why the calculator shows a monthly figure first. Nothing is deducted at all until your yearly salary passes Rs 600,000 — about Rs 50,000 a month.
A higher slab never means less take-home
The most common worry we hear is that a raise will push someone into a higher bracket and leave them worse off. It cannot. The rates are marginal: each rate applies only to the rupees inside its own band, not to your whole salary.
Take a salary of Rs 3,200,000 a year in tax year 2027, sitting exactly at the top of the 20% band. The tax is Rs 316,000, and monthly take-home is Rs 240,333. Now add Rs 100,000, which crosses into the 25% band:
- Tax rises from Rs 316,000 to Rs 341,000 — Rs 25,000, which is 25% of the extra Rs 100,000, and nothing more.
- Monthly take-home rises from Rs 240,333 to Rs 246,583.
The 25% never touches the first Rs 3,200,000. This is what the effective rate in the results is telling you: on Rs 3,300,000 the top rate is 25%, but the effective rate — total tax divided by total salary — is 10.33%. Those two numbers being different is the whole point, and the breakdown table under the results shows exactly how much tax each band contributed.
What changed from tax year 2026
The Finance Act 2026 cut two middle rates, split the top of the table into new 29% and 32% bands, and pushed the point where 35% starts from Rs 4.1 million out to Rs 7 million. Run any of these through the calculator against both years and you will get the same figures:
| Yearly salary | Tax in TY2026 | Tax in TY2027 | You keep |
|---|---|---|---|
| Rs 1,200,000 | Rs 6,000 | Rs 6,000 | No change |
| Rs 1,800,000 | Rs 72,000 | Rs 72,000 | No change |
| Rs 2,400,000 | Rs 162,000 | Rs 156,000 | Rs 6,000 |
| Rs 3,600,000 | Rs 466,000 | Rs 416,000 | Rs 50,000 |
| Rs 6,000,000 | Rs 1,281,000 | Rs 1,104,000 | Rs 177,000 |
| Rs 10,500,000 | Rs 3,113,040 | Rs 2,649,000 | Rs 464,040 |
Nothing changes at or below Rs 2.2 million, so a large share of salaried filers pay exactly what they paid last year. The band-by-band story is set out in Budget 2026-27: salary tax slabs compared.
The 9% surcharge and the Rs 10 million cliff
Section 4AB added a surcharge on high earners: 10% in tax year 2025, reduced to 9% in tax year 2026. It is charged on the tax, not on the income, and only once taxable income passes Rs 10 million. The Finance Act 2026 removed it for the salaried class, so it does not apply in tax year 2027 — but it very much applies to the return being filed this September.
Because it lands on the whole tax bill at once rather than on the amount above the threshold, it creates a genuine cliff — the one place where earning more really does leave you with less. In tax year 2026:
- At Rs 9,999,999 the tax is Rs 2,681,000 and there is no surcharge.
- One rupee more, and a surcharge of Rs 241,290 appears.
- You are not back to where you were until your salary reaches about Rs 10,390,121.
The calculator flags this for you: select tax year 2025 or 2026 and enter a salary inside that band, and it will tell you that you are in the cliff zone and what it is costing.
What this calculator covers, and what it does not
It calculates tax on salary income under the salaried slab rates, for tax years 2019 through 2027. That covers most people who ask, and it is deliberately not a whole-return engine.
- Salary must be more than 75% of your total income for the salaried rates to apply at all. If it is not, the non-salaried table applies and these figures will be too low.
- Business, rental, capital gains and other income are not included. Add them and the slab you land in can change.
- Tax credits and allowances are not applied — charitable donations under section 61, approved pension contributions and similar reliefs all reduce the final bill.
- Tax already deducted is not subtracted. The result is the tax due for the year, not the balance still owed after your employer’s monthly deductions.
Treat the number as an accurate answer to a specific question, not as a filed return. If your income is mixed, talk to us before you file.
Common questions
How much tax is deducted from my salary in Pakistan?
Nothing up to Rs 600,000 a year. Above that, tax is charged band by band — 1%, then 11%, 20%, 25%, 29%, 32% and 35% on the highest slice in tax year 2027. On a salary of Rs 3,600,000 a year the tax is Rs 416,000, which is Rs 34,667 a month and an effective rate of 11.56%.
What is the salary tax exemption limit?
Rs 600,000 a year, or Rs 50,000 a month. It did not change in the Finance Act 2026.
Will a raise into the next slab reduce my take-home pay?
No. The higher rate applies only to the rupees above the threshold, so your take-home always rises. The single exception is the section 4AB surcharge at Rs 10 million in tax years 2025 and 2026, described above.
Do I still have to file a return if my employer already deducts tax?
Yes. The deduction is payment; the return is the declaration, and only filing puts you on the Active Taxpayers List. Being off that list means higher withholding rates on banking, property and vehicle transactions — see what non-filer status costs you and how to become a filer.
What is the difference between the effective rate and my tax slab?
Your slab is the rate on your last rupee earned. The effective rate is your total tax divided by your total salary, and it is always lower. On Rs 6,000,000 in tax year 2027 the slab rate is 32% while the effective rate is 18.4%.
When is the deadline for the tax year 2026 return?
30 September 2026 for individuals and associations of persons, and 31 December 2026 for companies. Filing late brings a penalty under section 182 — the late filing penalty calculator works out what it would be.
Other calculators
- Filer status savings calculator — what non-filer withholding rates cost you across a year.
- Late filing penalty calculator — sections 182 and 182A.
- Sales tax (GST) calculator — add or remove sales tax, goods and provincial services.
- All tax tools — everything on one page.
Where these figures come from
The slab schedules behind this calculator are held in one place in our own code with a verification date attached, which is why the worked examples in the text above and the results the tool returns are the same numbers. Last checked 28 August 2026.
Not every year carries the same confidence, and it is worth saying so. TY2027 verified against the Finance Act 2026 (Gazette of Pakistan Extraordinary, 26 June 2026). Earlier years: PwC Tax Summaries, professional-firm Finance Act commentary, and contemporaneous reporting.
In practice that means tax year 2027 was checked line by line against the Act itself, while the earlier years rest on secondary sources. If you are filing for an older year and the figure matters, confirm it against the Finance Act for that year.
- Finance Act 2026, salaried individual rate schedule effective 1 July 2026 (Gazette of Pakistan Extraordinary, 26 June 2026).
- Income Tax Ordinance 2001, section 4AB (surcharge on high income individuals) and the First Schedule.
- Federal Board of Revenue, income tax rate information.