Finance Act 2026

Pakistan Budget 2026-27 tax changes tracker

Finance Act 2026 is in force from 1 July 2026. Salaried payroll should now use the eight-band 2026-27 table: middle rates are lower, 35% starts above Rs 7 million, and the 9% high-income surcharge is abolished.

What salaried persons should check

• Whether the basic exemption threshold changed.
• Whether any slab rate changed.
• Whether surcharge, rebate, or relief applies.
• Whether employers need to adjust monthly withholding from July payroll.
• Whether the final Finance Act changed anything from the original budget proposal.

Budget calculator

Use the 2026-2027 salary tax calculator for current payroll estimates.

How to use the new numbers

Salary paid from 1 July 2026 should be withheld under the 2026-27 table. Use last year’s calculator only when you are checking a 2025-26 salary certificate or return. Always compare the annual figure with your employer certificate before filing.

Why this page matters

Employees search for budget tax changes to see whether take-home pay rises. The enacted 2026-27 slabs cut several middle rates and removed the 9% surcharge, so mid-to-high salaries generally pay less than in 2025-26.