Pakistan Income Tax Calculator (FY 2026-27)

How the fixed-amount-plus-marginal-rate slabs work

Pakistan does not tax salary income the way some other countries do, by walking up from zero through a stack of bands each time. Instead, the Finance Act 2026 table publishes each bracket as a fixed tax amount, the total already accumulated from every bracket below it, plus a marginal rate that applies only to the slice of income sitting inside that particular bracket. Once you know which bracket your income falls into, the tax is a single calculation: the bracket's fixed amount, plus the marginal rate multiplied by however much of your income sits above that bracket's starting point.

A worked example makes this concrete. Take an annual taxable salary of Rs 2,000,000. That falls in the Rs 1,200,001 to Rs 2,200,000 bracket, which carries a fixed tax of Rs 6,000 and a marginal rate of 11% on the amount above Rs 1,200,000. The portion of income inside that bracket is Rs 2,000,000 minus Rs 1,200,000, which is Rs 800,000. Taxed at 11%, that comes to Rs 88,000. Add the bracket's fixed Rs 6,000 and the total tax due for the year is Rs 94,000, an effective rate of 4.7% on the full Rs 2,000,000, even though the marginal rate on the last rupee earned is 11%. That gap between the marginal rate and the effective rate is normal and expected: the marginal rate only describes the next rupee, not the whole income.

The practical upshot is that crossing from one bracket into the next by a small amount never creates a sudden jump in tax. Someone earning Rs 1,200,000 owes exactly Rs 6,000 in tax; someone earning one rupee more, Rs 1,200,001, owes Rs 6,000 and a fraction of a paisa more, not a whole new bracket's worth of tax. The fixed amounts in the table are set precisely so each bracket picks up exactly where the one below it left off.

The 9% surcharge is gone this year

Under the Finance Act 2025, salaried individuals with annual taxable income above Rs 10,000,000 paid an extra 9% surcharge calculated on top of their normal tax bill. The Finance Act 2026 abolished that surcharge with effect from 1 July 2026, so it does not appear anywhere in this calculator. If you compared last year's FBR figures against this year's and noticed the tax on a high salary came out lower, the removal of the surcharge is the reason, not a change to the underlying slab rates themselves, which are broadly the same structure carried forward.

What the Pakistan income tax calculator works out

The Pakistan income tax calculator returns your annual tax, your monthly tax, your effective rate and the marginal rate of your bracket. It works as an income tax calculator Pakistan salaried staff can use, a salary tax calculator Pakistan employees can check payslips against, and a general tax calculator Pakistan residents can use for the salary part of their income. Some people search for a Pakistan tax calculator or an FBR tax calculator, and an FBR income tax calculator or FBR salary tax calculator is the same arithmetic: this page is not an official tool, but it applies the slabs the FBR publishes. As an income tax calculator for salaried person in Pakistan it asks for one number, and as a monthly salary tax calculator Pakistan users can switch to monthly entry and read the monthly deduction directly. The annual tax calculator Pakistan view is the yearly figure shown beside it. For a take home salary calculator Pakistan style answer, subtract the monthly tax from your monthly taxable salary.

Tax slabs for salaried persons in Pakistan, FY 2026-27

These are the salary tax slabs 2026-27 Pakistan taxpayers see in the Finance Act 2026. The FBR tax slabs 2026-27 for salaried persons are the same table, so the income tax slabs Pakistan salaried employees must use are the eight brackets below. Each row gives the fixed tax already built up and the rate on the excess. If you compare the new tax slabs 2026-27 Pakistan with last year's, compare the tax for your own salary and not just the headline rates.

The top bracket answers a common question: the top income tax rate in Pakistan for salaried individuals is 35% on income above Rs 7,000,000. Only that slice is taxed at 35%, which is the effective rate versus marginal rate distinction again.

How to calculate income tax on salary in Pakistan

How to calculate income tax on salary in Pakistan takes four steps. Work out your annual taxable salary, find the bracket it falls in, take that bracket's fixed tax, and add the rate times the part of income over the bracket's starting point. That is how income tax is calculated in Pakistan for a salaried person, and the same income tax formula Pakistan uses also shows how tax is calculated on salary for any month. How to calculate taxable income in Pakistan is the first step, and the sections below explain what belongs in it.

Does a higher tax slab tax my whole salary? No. How are tax slabs applied in Pakistan? Only the income inside a bracket is taxed at that bracket's rate, and the fixed amount carries the tax from the brackets below, so moving into a higher slab never raises the tax on income you earned in a lower one. The table shows the result for common monthly salaries, and it answers tax on 50000 salary in Pakistan, tax on 70000 salary Pakistan, tax on 1 lakh salary in Pakistan, tax on 150k salary in Pakistan, tax on 200k salary in Pakistan, tax on 250000 salary in Pakistan and tax on 500k salary in Pakistan.

Tax-free limit, surcharge and filer status

The tax free salary limit in Pakistan for FY 2026-27 is Rs 600,000 a year, which is Rs 50,000 a month. The same number is the tax exemption limit in Pakistan for salaried individuals and the tax free income limit in Pakistan 2026-27 that people search for. A surcharge on salary in Pakistan, the 9% surcharge on salary that applied above Rs 10,000,000 under the Finance Act 2025, no longer applies, so there is no income tax surcharge Pakistan salaried taxpayers need to add.

Filer vs non filer in Pakistan is a different question. The salary slabs above are the same whichever you are, so becoming a filer does not reduce salary tax. Filer status matters for withholding on other transactions such as bank and property dealings, which this calculator does not cover.

Effective rate, marginal rate and what counts as taxable salary

Effective tax rate Pakistan figures divide total tax by total income, while the marginal tax rate Pakistan uses is the rate on your last rupee. The effective tax rate vs marginal tax rate gap is why a Rs 2,000,000 salary pays 4.7% overall even though its last rupee is taxed at 11%.

What is taxable salary in Pakistan? It is salary income after the exemptions that apply, so gross salary vs taxable salary can differ. Some allowances, such as medical allowance within its limit, may be exempt, so check your payslip for the taxable figure. Is bonus taxable in Pakistan? A bonus paid by an employer is generally part of salary income. To see how to calculate tax on bonus in Pakistan, compute tax on your annual salary with and without the bonus and take the difference.

Scope: salaried individuals only

Every figure on this page applies to salary income specifically. Pakistan taxes business income, income from a profession, and income from other sources under their own separate slabs and rules, which this calculator does not model. If your income is a mix of salary and something else, such as a side business or rental income, use this tool only for the salary portion, and get the rest assessed separately.

Taxable salary here means your total salary income for the year after any exemptions your employer already applies, such as medical allowance up to its allowed limit. This calculator does not recompute those exemptions for you; enter the taxable figure your payslip or FBR return shows, not your full gross pay before exemptions.

Comparing income tax outside Pakistan? This site links to the US, UK and India versions of this calculator, each built around that country's own tax rules.