How to calculate salary tax in Pakistan (FY 2026-27)
Salary tax in Pakistan is progressive: the more you earn in a year, the higher the rate on the top part of your income. Here is the exact method, using the slabs for salaried persons from 1 July 2026.
The slabs
| Yearly income (Rs) | Tax |
|---|---|
| Up to 600,000 | 0 |
| 600,001 – 1,200,000 | 1% above 600,000 |
| 1,200,001 – 2,200,000 | Rs 6,000 + 11% above 1,200,000 |
| 2,200,001 – 3,200,000 | Rs 116,000 + 20% above 2,200,000 |
| 3,200,001 – 4,100,000 | Rs 316,000 + 25% above 3,200,000 |
| 4,100,001 – 5,600,000 | Rs 541,000 + 29% above 4,100,000 |
| 5,600,001 – 7,000,000 | Rs 976,000 + 32% above 5,600,000 |
| Above 7,000,000 | Rs 1,424,000 + 35% above 7,000,000 |
Step by step
- Multiply your monthly gross salary by 12 to get yearly income.
- Find the slab your yearly income falls in.
- Add the fixed amount for that slab to the rate multiplied by the income above the slab's starting point.
- Divide the yearly tax by 12 for the monthly deduction.
Tax = fixed amount + rate × (yearly income − slab start)
Example 1: Rs 250,000 a month
Yearly income is Rs 3,000,000, which is in the 20% slab. Tax = Rs 116,000 + 20% × Rs 800,000 = Rs 276,000 a year, or Rs 23,000 a month. Take-home pay is Rs 227,000 a month.
Example 2: Rs 80,000 a month
Yearly income is Rs 960,000, which is in the 1% slab. Tax = 1% × Rs 360,000 = Rs 3,600 a year, or Rs 300 a month.
What this does not include
Some allowances may be exempt and tax credits (for donations, pension contributions or Zakat, for example) can reduce your tax. Your payslip or annual return can therefore differ from these numbers. Slabs change with the federal budget each year, so check the tax year before you calculate. For filing, use FBR's IRIS portal or ask a tax adviser.
Skip the maths: use the salary tax calculator.
Frequently asked questions
What is the tax-free salary in Pakistan for 2026-27?
Yearly salary up to Rs 600,000 (Rs 50,000 a month) is not taxed under the slabs on this page.
Do I pay tax on each slab separately?
Yes. Only the income inside a slab is taxed at that slab's rate. That is why the method adds a fixed amount for the lower slabs.