Calculate your monthly and annual salary income tax instantly — based on the latest
FBR income tax slabs for Tax Year 2025-26 (July 2025 to June 2026). Free, accurate,
and updated as per Finance Act 2025.
Calculate monthly & annual income tax and take-home salary using FBR salary tax slabs for 2025-26 or 2026-27.
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If you’re a salaried employee in Pakistan, Budget 2026-27 has brought the biggest income tax relief in years. Four tax slabs have been reduced, the 9% surcharge on high earners has been abolished, and the top 35% bracket now kicks in much later than before. Whether you’re checking your payslip or planning your finances for Tax Year 2027, this guide walks you through exactly how much tax you’ll pay — and how to calculate it in seconds using a salary tax calculator.
On June 12, 2026, Finance Minister Muhammad Aurangzeb presented the Federal Budget 2026-27 in the National Assembly. For salaried individuals, three changes stand out:
These changes take effect from July 1, 2026, marking the start of Tax Year 2027, and apply once the Finance Bill 2026 is formally passed and notified by the FBR. Until then, employers should apply the proposed rates for monthly withholding, and payroll teams should keep an eye on the official FBR notification.
It’s worth noting that the basic tax-free threshold remains unchanged at Rs 600,000 per year (Rs 50,000 per month). If your annual salary income is at or below this amount, you continue to pay zero income tax.
Pakistan’s income tax on salary is progressive, meaning each rate only applies to the portion of income that falls within that specific bracket — not your entire salary. Here are the updated slabs:
| Annual Taxable Income (PKR) | Tax Rate |
|---|---|
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 1% of the amount exceeding 600,000 |
| 1,200,001 – 2,200,000 | Rs 6,000 + 11% of the amount exceeding 1,200,000 |
| 2,200,001 – 3,200,000 | Rs 116,000 + 20% of the amount exceeding 2,200,000 |
| 3,200,001 – 4,100,000 | Rs 316,000 + 25% of the amount exceeding 3,200,000 |
| 4,100,001 – 5,600,000 | Rs 541,000 + 29% of the amount exceeding 4,100,000 |
| 5,600,001 – 7,000,000 | Rs 976,000 + 32% of the amount exceeding 5,600,000 |
| Above 7,000,000 | Rs 1,424,000 + 35% of the amount exceeding 7,000,000 |
Note: These figures reflect the slabs proposed in the Finance Bill 2026. Rates apply to income where salary makes up more than 75% of total taxable income; freelancers and business owners are taxed under a separate schedule. Always confirm final rates against the official FBR notification once issued.
📌 These slabs are for salaried income only. Business income, freelance income, and rental income are taxed under separate slabs. Use our Business Tax Calculator or Freelancer Tax Calculator for non-salary income.
Here’s a simple example using the new slabs. Suppose your annual taxable salary is Rs 3,000,000.
This is exactly how a salary tax calculator works behind the scenes — it automates these steps so you don’t have to do the math manually every time your salary changes.
Manually working through slab-based tax formulas is time-consuming and error-prone, especially if your salary includes bonuses, arrears, or mid-year raises. A dedicated salary tax calculator for Pakistan 2026-27 helps you:
Use our Tax Calculators to get an instant, accurate estimate based on the FY 2026-27 slabs.
Get your monthly and annual tax breakdown instantly as you type your salary — no waiting, no page reload. Results include your effective tax rate, tax bracket, and monthly take-home salary after tax deduction.
Always updated with the latest FBR income tax slabs as per Finance Act 2025 for Tax Year 2026 (July 2025 — June 2026). No outdated calculations — your result is always based on current FBR law.
Mathematical accuracy down to the rupee — no rounding errors. Our calculator uses the exact FBR progressive tax formula — the same calculation your employer's accountant uses to deduct salary tax from your monthly paycheck.
100% free to use with no account creation, no email signup, and no personal information required. Calculate your salary tax anonymously as many times as you need.
📌 These slabs are for salaried income only. Business income, freelance income, and rental income are taxed under separate slabs. Use our Business Tax Calculator or Freelancer Tax Calculator for non-salary income.
Focus on growing your core business while we handle the complexities of ERP, Accounting, and Taxation.
