Pakistan
Pakistan salary tax 2026-27
6 min read · Last updated 1 November 2026 · Tax Globy editorial team
Pakistan taxes salaried income through a set of progressive slabs, and for tax year 2026-27 those slabs run from 0% to 35%. The 9% surcharge that applied to very high taxable income in 2025-26 has been abolished. This guide sets out the slabs, a worked example and the parts of the calculation that are left out.
The salaried slabs for 2026-27
For tax year 2026-27, the salaried income tax slabs run from 0% to 35% across eight bands. The Finance Act 2026 sets the first band at up to PKR 600,000, which is taxed at 0%, and the top band above PKR 7,000,000 at 35%.
The 9% surcharge that applied in 2025-26 to taxable income above PKR 10 million is abolished for 2026-27. For salaries below that level the change has no direct effect; for salaries above it, the removal simplifies the final calculation.
The slabs at a glance
The table lists the annual taxable salary bands and the rate applied to each slice. Only the income that falls inside a band is taxed at that band rate, so the top rate is never applied to the whole salary.
The bands are uneven in width. The 0% band covers the first PKR 600,000, while the 35% band applies only above PKR 7,000,000.
| Annual taxable salary (PKR) | Rate |
|---|---|
| Up to 600,000 | 0% |
| 600,001 to 1,200,000 | 1% |
| 1,200,001 to 2,200,000 | 11% |
| 2,200,001 to 3,200,000 | 20% |
| 3,200,001 to 4,100,000 | 25% |
| 4,100,001 to 5,600,000 | 29% |
| 5,600,001 to 7,000,000 | 32% |
| Above 7,000,000 | 35% |
Run your own numbers
The calculator applies the rates described in this guide and shows the band-by-band breakdown.
Open the Pakistan calculatorWorked example: a PKR 3,000,000 salary
Take an annual salary of PKR 3,000,000 with no other income, no credits and no contributions. The tax is built slice by slice rather than by applying the 20% rate to the whole amount.
The total is PKR 276,000, an effective rate of 9.2% of the salary. Take-home pay is PKR 2,724,000 for the year, or PKR 227,000 a month before any other payroll deductions.
- Up to PKR 600,000: 0
- PKR 600,001 to 1,200,000: 1% of 600,000 = 6,000
- PKR 1,200,001 to 2,200,000: 11% of 1,000,000 = 110,000
- PKR 2,200,001 to 3,000,000: 20% of 800,000 = 160,000
- Total tax: PKR 276,000
How the employer takes tax each month
Salary is normally taxed monthly by the employer under the FBR withholding system. The employer estimates the annual liability from the salary and applies the relevant slabs, then withholds roughly a twelfth each month, adjusting as allowances and exemptions become known.
The monthly figure is an estimate rather than a final assessment. When you file your return, the amount withheld is reconciled against the liability for the year, and any difference is paid or refunded. Keep the record of tax deducted, because the reconciliation is based on it.
What the estimate leaves out
The calculation covers salary income only. It does not include EOBI, provident fund contributions or other payroll deductions, which reduce the amount that reaches your bank account but are not income tax.
It also leaves out zakat, tax credits, investment allowances and any non-salary income such as rent, business profit or capital gains. Each of those can change the final liability, so treat the result as a planning estimate rather than a filed return.
Figures are estimates for general guidance, not tax advice.
Why the effective rate is lower than the top rate
At PKR 3,000,000 the top slice is taxed at 20%, yet the effective rate is 9.2%. The difference comes from the lower bands: the first PKR 600,000 is free of tax and the next PKR 600,000 is taxed at 1%.
A raise moves more income into the higher bands but leaves the tax on earlier slices unchanged. Someone earning PKR 3,300,000 pays 20% on the next 200,000 up to 3,200,000 and 25% on the 100,000 above it, not 25% on the whole salary.
Checking a payslip against the estimate
Compare the tax withheld on your payslip with an annual estimate. A gap can come from allowances treated differently, a mid-year raise, a change of employer or a different tax year being used.
Check the tax year first. The 2025-26 rules included the 9% surcharge above PKR 10 million, while the 2026-27 rules do not, so a figure taken from an older page may not match your current deduction.
Common questions
What is the highest salaried tax rate in 2026-27?
The top slab is 35% on taxable salary above PKR 7,000,000. It applies only to the slice above that level, not to the whole salary.
Does the 9% surcharge still apply?
No. The surcharge on taxable income above PKR 10 million that applied in 2025-26 is abolished for 2026-27.
Is tax deducted from my salary every month?
Yes. Salary is normally taxed monthly by the employer under the FBR withholding system and reconciled when the return is filed.
Why is my take-home pay different from the estimate?
The estimate covers income tax only. EOBI, provident fund, zakat, credits and other payroll items are not included, and they can change the amount you receive.
Written and maintained by the Tax Globy editorial team
Tax Globy is an independent calculator project. Every rate, threshold and deduction is checked against the published official source listed on the page, and each page shows when it was last reviewed.
Last reviewed 1 November 2026 · Estimates only, not tax advice.
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