Salary tax guide
Income tax slabs Pakistan 2026-2027 for salaried persons
From 1 July 2026, salaried income is taxed under Finance Act 2026. There are eight bands, the first Rs 600,000 stays tax-free, and the 35% rate starts only after Rs 7 million.
2026-27 salaried slab table
| Annual taxable salary | Tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 – Rs 1,200,000 | 1% of the amount above Rs 600,000 |
| Rs 1,200,001 – Rs 2,200,000 | Rs 6,000 + 11% above Rs 1,200,000 |
| Rs 2,200,001 – Rs 3,200,000 | Rs 116,000 + 20% above Rs 2,200,000 |
| Rs 3,200,001 – Rs 4,100,000 | Rs 316,000 + 25% above Rs 3,200,000 |
| Rs 4,100,001 – Rs 5,600,000 | Rs 541,000 + 29% above Rs 4,100,000 |
| Rs 5,600,001 – Rs 7,000,000 | Rs 976,000 + 32% above Rs 5,600,000 |
| Above Rs 7,000,000 | Rs 1,424,000 + 35% above Rs 7,000,000 |
How to read a slab
Your whole salary is not taxed at the highest percentage shown. Lower bands keep their lower rates. The formula uses a fixed amount for the income already covered by lower slabs, then a percentage only on the excess.
Example: Rs 250,000 a month is Rs 3,000,000 a year. That sits in the 20% band, so tax is Rs 116,000 + 20% of Rs 800,000 = Rs 276,000 a year, or about Rs 23,000 a month.
What changed from 2025-26
Rates up to Rs 2.2 million are unchanged. Middle rates fell, two new bands were added before 35%, the top rate now starts at Rs 7 million, and the 9% surcharge on high salaried tax was removed.
Use the 2026-2027 salary tax calculator for your own figure, or compare with the 2025-2026 slab guide.