PKR

Pakistan Salary Tax Calculator

Income tax on a salary in Pakistan for tax year 2027 (July 2026 to June 2027), by the FBR salaried slabs: annual and monthly tax, take-home pay and the slab working.

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Result…

Salary entered
PKR

Taxable salary for one month, after any exempt allowances.

 

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How it's calculated

Annual salary = monthly salary × 12
Tax = fixed amount for the slab + rate × (salary − slab start)
Slabs (PKR): 0% to 600,000; 1% to 1,200,000; 11% to 2,200,000; 20% to 3,200,000; 25% to 4,100,000; 29% to 5,600,000; 32% to 7,000,000; 35% above
Monthly tax = annual tax ÷ 12; take-home = salary − tax

Works out the income tax on a salary in Pakistan for tax year 2027 (1 July 2026 to 30 June 2027) with the salaried slab table in Division I of Part I of the First Schedule to the Income Tax Ordinance 2001, as replaced by the Finance Act 2026. Each slab taxes only the part of the salary inside it, so the working shows every slab you reach. The Finance Act 2026 also ended the surcharge on salaried individuals, so none is added. The table applies when salary is more than three quarters of taxable income.

Your numbers, step by step

    About the Pakistan Salary Tax calculator

    This Pakistan salary tax calculator works out the income tax on a salary for tax year 2027, which runs from 1 July 2026 to 30 June 2027. Enter your monthly or annual taxable salary and it returns the annual and monthly tax, your take-home pay, the effective rate and the slab you have reached. It uses the salaried slab table that the Finance Act 2026 wrote into the Income Tax Ordinance 2001, from 0% up to 600,000 rupees to 35% above 7 million. Employees use it to check the tax their employer deducts each month, to compare job offers, or to see what a raise is worth after tax. Every slab is shown with your numbers, so you can follow how each part of the salary is taxed rather than trusting a single figure. Amounts are in Pakistani rupees (PKR).

    How to use it

    1. Choose whether you are entering a “Monthly” or “Annual” salary.
    2. Enter your “Monthly taxable salary” or “Annual taxable salary”, after any exempt allowances.
    3. Read the annual income tax and the monthly tax your employer should deduct.
    4. Check the take-home pay, the effective rate and the slab working in the steps.

    Worked example

    A taxable salary of 250,000 PKR a month is 250,000 × 12 = 3,000,000 PKR a year. The first 600,000 is taxed at 0%, the next 600,000 at 1% (6,000), the next 1,000,000 at 11% (110,000) and the last 800,000 at 20% (160,000). Annual tax = 276,000 PKR, or 23,000 PKR a month. Take-home pay is 227,000 PKR a month (2,724,000 PKR a year), an effective rate of 9.2%, with 20% as the top slab reached.

    Updated

    Questions people ask

    How is income tax on salary calculated in Pakistan for 2026-27?

    Multiply the monthly taxable salary by 12, then tax each slice of the year's salary at its slab rate: 0% to 600,000, 1% to 1,200,000, 11% to 2,200,000, 20% to 3,200,000, 25% to 4,100,000, 29% to 5,600,000, 32% to 7,000,000 and 35% above. Divide the total by 12 for the monthly deduction.

    What are the salaried tax slabs for tax year 2027?

    They are set in Division I, Part I of the First Schedule to the Income Tax Ordinance 2001 as replaced by the Finance Act 2026, and repeated on the FBR withholding tax rate card for 2027. The calculator's formula section lists every slab with its rate.

    Is there still a surcharge on high salaries?

    Not for tax year 2027. The Finance Act 2026 replaced the 9% surcharge for salaried individuals with no surcharge, so the result is the slab tax alone. Non-salaried individuals still pay a 10% surcharge above 10 million, which the Pakistan income tax calculator adds.

    Do I enter my gross or my taxable salary?

    Enter taxable salary. A common mistake is to include allowances that are exempt by law, which overstates the tax. Your employer's salary slip or certificate usually shows the taxable amount.

    When do the salaried slabs not apply to me?

    They apply only when salary is more than 75% of your taxable income; with more business or rental income, the non-salaried slabs are used instead. The result also leaves out tax credits, tax deducted on other income and super tax. For your own return, check with the FBR or a tax adviser.

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