Salaried Income Tax Slabs for Tax Year 2027
These are the slabs that apply to salary income earned between 1 July 2026 and 30 June 2027, which is tax year 2027.
The slabs
| Annual taxable salary | Tax |
|---|---|
| Up to Rs 600,000 | Nil |
| Rs 600,001 to Rs 1,200,000 | 1% of the amount above Rs 600,000 |
| Rs 1,200,001 to Rs 2,200,000 | Rs 6,000 plus 11% of the amount above Rs 1,200,000 |
| Rs 2,200,001 to Rs 3,200,000 | Rs 116,000 plus 20% of the amount above Rs 2,200,000 |
| Rs 3,200,001 to Rs 4,100,000 | Rs 316,000 plus 25% of the amount above Rs 3,200,000 |
| Rs 4,100,001 to Rs 5,600,000 | Rs 541,000 plus 29% of the amount above Rs 4,100,000 |
| Rs 5,600,001 to Rs 7,000,000 | Rs 976,000 plus 32% of the amount above Rs 5,600,000 |
| Above Rs 7,000,000 | Rs 1,424,000 plus 35% of the amount above Rs 7,000,000 |
How to read a slab
The rate in your slab applies only to the part of your income inside that slab, not to all of it. This is the single most common misunderstanding about income tax in Pakistan. Moving into a higher slab does not re-tax the money below it.
A worked example
Take a salary of Rs 3,000,000 a year. That falls in the fourth slab, so the tax is Rs 116,000 plus 20% of the amount above Rs 2,200,000.
20% of Rs 800,000 is Rs 160,000. Add the fixed Rs 116,000 and the tax for the year is Rs 276,000, which is Rs 23,000 a month. That is an effective rate of 9.2% on the whole salary, even though the top slab you touched was 20%.
You can check any figure with our income tax calculator, which covers every tax year from 2019 to 2027 and shows the slab by slab working.
The surcharge on high salaries
For tax years 2025 and 2026 there was an extra surcharge under section 4AB on individuals whose taxable income passed Rs 10 million, charged on the tax rather than on the income. That surcharge was withdrawn with effect from 1 July 2026, so it does not apply to tax year 2027.
If you are filing for an earlier year, it may still apply to you. We cover how it worked, and the odd effect it had just above the threshold, in a separate article.
Last updated: 28 July 2026 · Tax year: TY2027 (FY 2026-27)
Sources
- Finance Act 2026, salaried individual rate schedule effective 1 July 2026
- FBR, income tax basics and rate information, Federal Board of Revenue (fbr.gov.pk)
- PwC Tax Summaries, Pakistan individual taxes on personal income
- Professional firm commentary on the Finance Act 2026 rate schedule, accessed 28 July 2026
This article gives general information about tax in Pakistan. It is not advice on your own situation. Rules and rates change, sometimes in the middle of a year. Before you act on anything here, check the current position with the FBR or a registered tax practitioner.
