Salary income tax calculator for Pakistan
Salaried income tax in Pakistan starts at 1% on annual income above Rs 600,000 and rises to 35% above Rs 7,000,000. On Rs 150,000 a month you pay Rs 6,000 in tax and take home Rs 144,000.
Doing this by hand every payday?
- ConnectSimpli applies these slabs for you — on every pay run, for every employee, updated each budget. No rate table to maintain.
- Allowances, deductions and staff loans are part of the calculation, not a manual adjustment afterwards.
- Payslips and year-end tax certificates issued to the whole team from the same run.
Rates per the Finance Act 2026 (gazetted 26 June 2026, effective 1 July 2026) — Tax Year 2027 in FBR's own numbering. Salaried individuals only.
Salaried income tax slabs
Tax is not charged at one flat rate. Each slab taxes only the income inside it, which is why your effective rate is always lower than your marginal rate.
Tax year 2026-27Current
FBR calls this Tax Year 2027 · income earned 1 July 2026 to 30 June 2027 · Finance Act 2026 (gazetted 26 June 2026, effective 1 July 2026)
| Annual taxable income | Rate on the excess | Fixed amount |
|---|---|---|
| Rs 0 – Rs 600,000 | Nil | — |
| Rs 600,001 – Rs 1,200,000 | 1% | — |
| Rs 1,200,001 – Rs 2,200,000 | 11% | Rs 6,000 |
| Rs 2,200,001 – Rs 3,200,000 | 20% | Rs 116,000 |
| Rs 3,200,001 – Rs 4,100,000 | 25% | Rs 316,000 |
| Rs 4,100,001 – Rs 5,600,000 | 29.0% | Rs 541,000 |
| Rs 5,600,001 – Rs 7,000,000 | 32% | Rs 976,000 |
| Above Rs 7,000,000 | 35% | Rs 1,424,000 |
No high-income surcharge applies in this year.
Tax year 2025-26
FBR calls this Tax Year 2026 · income earned 1 July 2025 to 30 June 2026 · Finance Act 2025 (effective 1 July 2025)
| Annual taxable income | Rate on the excess | Fixed amount |
|---|---|---|
| Rs 0 – Rs 600,000 | Nil | — |
| Rs 600,001 – Rs 1,200,000 | 1% | — |
| Rs 1,200,001 – Rs 2,200,000 | 11% | Rs 6,000 |
| Rs 2,200,001 – Rs 3,200,000 | 23% | Rs 116,000 |
| Rs 3,200,001 – Rs 4,100,000 | 30% | Rs 346,000 |
| Above Rs 4,100,000 | 35% | Rs 616,000 |
A 9% surcharge on the computed tax applied where annual taxable income exceeded Rs 10,000,000. Abolished from tax year 2026-27.
How to calculate income tax on salary
Four steps take you from a monthly figure to the tax your employer withholds. The calculator above does this for you, but the arithmetic is worth seeing.
Annualise the salary
Monthly taxable salary × 12. The slabs are annual figures, so monthly pay has to be scaled up before any rate is applied.
Find the slab
Locate the slab your annual income falls in. Each slab carries a fixed amount — the total tax already due on all the income below it.
Apply fixed + marginal
Tax = the slab's fixed amount + its rate × the income above the slab's floor. This is the statutory form, so it matches FBR's published table exactly.
Divide by twelve
Annual tax ÷ 12 is what your employer withholds each month. In Tax year 2026-27 there is no surcharge to add on top.
Worked example — Rs 150,000 a month
Rs 150,000 × 12 = Rs 1,800,000 a year. That lands in the 11% slab, which starts at Rs 1,200,000 and carries a fixed amount of Rs 6,000.
Tax = Rs 6,000 + 11% of the amount above that floor = Rs 72,000 a year, or Rs 6,000 a month. Take-home is Rs 144,000 a month — an effective rate of 4%, well under the 11% marginal rate.
Pakistan salary tax questions
How much salary is tax free in Pakistan?
Annual taxable income up to Rs 600,000 is exempt from income tax in Tax year 2026-27 — that is Rs 50,000 a month. Tax applies only to the amount above that threshold.
What are the income tax slabs for salaried people in Tax year 2026-27?
Under the Finance Act 2026 (gazetted 26 June 2026, effective 1 July 2026) there are 8 slabs. Income up to Rs 600,000 is untaxed; the first 1% band runs to Rs 1,200,000; the top rate of 35% applies above Rs 7,000,000.
How is monthly salary tax calculated?
Tax is assessed on annual taxable income, then divided by twelve for monthly withholding. Your employer applies the slab formula — a fixed amount for the slabs you have passed, plus the marginal rate on the amount inside your current slab — and deducts one twelfth each month.
Is the 9% surcharge on high salaries still payable?
No. The 9% surcharge that applied where annual taxable income exceeded Rs 10,000,000 was abolished from tax year 2026-27. It still applies if you are calculating tax for 2025-26, which this calculator supports via the tax-year selector.
Who counts as a salaried person for these rates?
The salaried slabs apply where income from salary is more than 75% of your total taxable income. If most of your income comes from business or other sources, different non-salaried rates apply and this calculator does not cover them.
Does this calculator account for provident fund, EOBI or allowances?
No. It works from taxable income — the figure after any exempt allowances and admissible deductions have already been applied. Enter your taxable salary, not your gross cost-to-company, if the two differ.
ConnectSimpli applies these slabs to every payslip.
Payroll runs, tax deductions and payslips for your whole team — with Pakistani tax rules built in and updated each budget. Free for up to 5 employees.
This is an estimate, not tax advice. It covers salaried individuals under the slabs shown and ignores exempt allowances, admissible deductions, tax credits and any income outside salary. Figures were checked on 2026-08-11 against the sources listed below; always confirm against the FBR before filing or relying on a number.
Sources: Mercans — Pakistan Finance Act 2026-27 payroll alert · TaxWizard.pk — Pakistan tax slabs 2026-27 & 2025-26 · BACO Consultants — salaried slabs FY 2026-27 · PakTaxCalculator.pk — income tax slabs