The new tax year 2026-27 (1 July 2026 – 30 June 2027) brings revised income tax slabs for salaried individuals in Pakistan. In this guide, we break down the slabs, explain how your monthly tax is calculated, and share practical tips to remain compliant and reduce your tax legally.

Quick tip: Use our free Pakistan Tax Calculator 2026-27 to estimate salary tax and 25 other taxes, and download the result as a PDF.

Salaried Income Tax Slabs 2026-27

The following rates apply where salary income exceeds 75% of total taxable income:

Annual Taxable Income (PKR)Tax Rate
Up to 600,0000%
600,001 – 1,200,0001% of amount exceeding 600,000
1,200,001 – 2,200,000Rs. 6,000 + 11% of amount exceeding 1,200,000
2,200,001 – 3,200,000Rs. 116,000 + 20% of amount exceeding 2,200,000
3,200,001 – 4,100,000Rs. 316,000 + 25% of amount exceeding 3,200,000
4,100,001 – 5,600,000Rs. 541,000 + 29% of amount exceeding 4,100,000
5,600,001 – 7,000,000Rs. 976,000 + 32% of amount exceeding 5,600,000
Above 7,000,000Rs. 1,424,000 + 35% of amount exceeding 7,000,000
Good news: the 9% surcharge on salaried individuals with income above Rs. 10 million has been withdrawn for TY 2026-27 under Finance Bill 2026. It continues at 9% for AOPs and non-salaried individuals.

Example Calculation

Suppose your monthly salary is Rs. 150,000, meaning annual income of Rs. 1,800,000:

  • Fixed tax on first Rs. 1,200,000: Rs. 6,000
  • 11% on the remaining Rs. 600,000: Rs. 66,000
  • Total annual tax: Rs. 72,000 (Rs. 6,000 per month)

Why Being a Filer Matters

Appearing on the FBR's Active Taxpayer List (ATL) gives you significantly lower withholding tax rates on:

  • Purchase and sale of property
  • Vehicle registration and token tax
  • Cash withdrawals and certain banking transactions
  • Profit on savings and dividends

Ways to Reduce Your Tax Legally

  1. Claim tax credits for eligible investments such as approved pension funds and certain insurance contributions.
  2. Claim deductible allowances where permitted (e.g. Zakat paid under the Zakat Ordinance).
  3. Adjust withholding taxes already paid on electricity bills, mobile phones, vehicles and banking against your final liability.
  4. File on time to avoid penalties and default surcharge.
Chinnar Business Advisors can prepare your return and wealth statement, claim every eligible credit and handle your refund. Book a free consultation.

Disclaimer: This article is for general information only. Tax rates are based on the Finance Act as publicly reported; always confirm with the latest FBR notifications or consult a tax professional before making decisions.