On a salary of Rs 150,000 a month, income tax for 2026-27 is Rs 6,000 a month, leaving Rs 144,000 in hand. Enter your own monthly or yearly salary above and the calculator applies the 2026-27 salaried slabs, then splits the yearly tax into a monthly figure.
It also shows how much more or less you would pay under last year's rules. Use the year chips above to switch to 2025-26 or 2024-25 if you are checking an older payslip.
How salary tax works in Pakistan
Tax on salary is charged on your annual taxable income, not on each month separately. The law sets out slabs in the First Schedule to the Income Tax Ordinance 2001. Each slab has a fixed amount plus a percentage of the income above the slab's starting point.
Your employer works out the tax for the whole year and deducts a share of it from each month's pay. This is withholding under section 149 of the Ordinance. The employer then deposits it with FBR in your name, and it shows against your CNIC when you file your return.
If your salary changes during the year, or you get a bonus, the employer should adjust the remaining monthly deductions so the year's total comes out right. That is why the deduction on your payslip can move around near the end of June.
A government employee whose pay changed in July can work out the new basic pay with the annual increment calculator and the budget raise with the pay raise calculator, then enter the new monthly salary here.
What counts as taxable salary
Salary for tax purposes is broad. It generally covers basic pay, most allowances, bonuses, commissions and the value of perks your employer provides. Some items are exempt or treated differently under the Second Schedule and the rules on perquisites, so the figure on which tax is charged can be lower than your gross pay.
We do not try to list those exemptions here, because they depend on your contract and change from time to time. If your payslip shows a "taxable income" line, use that figure. If not, enter gross salary and treat the result as the upper end.
Who these slabs are for
The salaried slabs apply where salary is more than 75% of your taxable income. If most of your income comes from business, rent or other sources, different slabs apply and this calculator is not the right tool.
Worked example: Rs 150,000 a month in 2026-27
- Annual salary: Rs 150,000 x 12 = Rs 1,800,000.
- This falls in the slab from Rs 1,200,001 to Rs 2,200,000: Rs 6,000 plus 11% of the amount over Rs 1,200,000.
- Amount over Rs 1,200,000: Rs 600,000. 11% of that is Rs 66,000.
- Tax for the year: Rs 6,000 + Rs 66,000 = Rs 72,000.
- Tax per month: Rs 72,000 / 12 = Rs 6,000. Take-home before other deductions: Rs 144,000.
The effective rate is 4%, even though the top slice of your income is taxed at 11%. Only the part above each threshold is charged at the higher rate.
Salaried tax slabs 2026-27
These are the eight slabs in force from 1 July 2026 to 30 June 2027. The calculator highlights the slab your salary falls in.
| # | Annual taxable income | Tax |
|---|---|---|
| 01 | Up to 600,000 | 0% |
| 02 | 600,001 to 1,200,000 | 1% of the amount over 600,000 |
| 03 | 1,200,001 to 2,200,000 | Rs 6,000 + 11% of the amount over 1,200,000 |
| 04 | 2,200,001 to 3,200,000 | Rs 116,000 + 20% of the amount over 2,200,000 |
| 05 | 3,200,001 to 4,100,000 | Rs 316,000 + 25% of the amount over 3,200,000 |
| 06 | 4,100,001 to 5,600,000 | Rs 541,000 + 29% of the amount over 4,100,000 |
| 07 | 5,600,001 to 7,000,000 | Rs 976,000 + 32% of the amount over 5,600,000 |
| 08 | Above 7,000,000 | Rs 1,424,000 + 35% of the amount over 7,000,000 |
All three years side by side are on the income tax slabs page.
What Finance Act 2026 changed for salaried people
The 2026-27 budget reshaped the upper part of the salaried table. The main changes:
- Rs 2.2 million to 3.2 million: rate cut from 23% to 20%.
- Rs 3.2 million to 4.1 million: rate cut from 30% to 25%.
- Above Rs 4.1 million: the single 35% slab was split into three. Income from Rs 4.1 million to 5.6 million is now taxed at 29%, and from Rs 5.6 million to 7 million at 32%.
- Top rate: still 35%, but it now starts at Rs 7 million instead of Rs 4.1 million.
- Surcharge: the 9% surcharge on salaried people with taxable income above Rs 10 million is gone from tax year 2027.
The tax-free limit of Rs 600,000, the 1% slab and the 11% slab did not change.
2026-27 against 2025-26 at common salaries
Monthly tax under each year's slabs, for the same salary paid across all 12 months.
| Monthly salary | Tax per month 2026-27 | Tax per month 2025-26 |
|---|---|---|
| Rs 100,000 | Rs 500 | Rs 500 |
| Rs 150,000 | Rs 6,000 | Rs 6,000 |
| Rs 200,000 | Rs 13,000 | Rs 13,500 |
| Rs 250,000 | Rs 23,000 | Rs 25,000 |
| Rs 300,000 | Rs 34,667 | Rs 38,833 |
| Rs 400,000 | Rs 62,000 | Rs 71,750 |
| Rs 500,000 | Rs 92,000 | Rs 106,750 |
| Rs 1,000,000 | Rs 264,500 | Rs 307,108 |
Up to Rs 150,000 a month the two columns match. The saving starts small, Rs 500 a month at Rs 200,000, and grows quickly: about Rs 4,167 a month at Rs 300,000, Rs 14,750 at Rs 500,000 and Rs 42,608 at Rs 1,000,000. Up to Rs 50,000 a month (Rs 600,000 a year) there is no income tax on salary. For older years, open the 2025-26 calculator or the 2024-25 calculator.
Who gains the most
The biggest relief in rupees goes to the highest earners. At Rs 1,000,000 a month (Rs 12 million a year) two changes stack up: lower rates between Rs 4.1 million and 7 million, and the end of the 9% surcharge. Tax drops from Rs 3,685,290 to Rs 3,174,000 for the year.
In percentage terms, people between Rs 350,000 and Rs 500,000 a month also see a clear cut. Their effective rate falls by about two to three percentage points. For someone on Rs 150,000 or less, the budget made no difference to tax on salary.
Worked example: Rs 350,000 a month, old and new slabs
- Annual salary: Rs 350,000 x 12 = Rs 4,200,000.
- 2026-27 slab: Rs 4,100,001 to Rs 5,600,000, which is Rs 541,000 plus 29% of the amount over Rs 4,100,000.
- 29% of Rs 100,000 is Rs 29,000. Tax for the year: Rs 570,000, or Rs 47,500 a month.
- Under 2025-26 rules the same income fell in the top slab: Rs 616,000 plus 35% of Rs 100,000, giving Rs 651,000, or Rs 54,250 a month.
- Saving: Rs 81,000 a year, Rs 6,750 a month.
Which year should I pick?
The chips above the calculator switch between years.
- 2026-27: pay from July 2026 onwards. Use this for your current payslip.
- 2025-26: pay from July 2025 to June 2026. Use this when preparing the return for tax year 2026.
- 2024-25: pay from July 2024 to June 2025. Use this to check old deductions.
Pakistan's tax year is named after the June in which it ends. So 2026-27 is "tax year 2027", which is the label FBR's forms use.
If most of your income comes from a business or profession, the salaried slabs do not apply; use the business income tax calculator. Professionals in Punjab also pay a yearly professional tax.
How to file a tax return in Pakistan as a salaried person
Your employer deducts tax each month, but you still need to file a return to appear on FBR's Active Taxpayers List, which lowers the withholding tax you pay on banking, property and vehicles.
What is a tax identification number?
For an individual, FBR uses your 13 digit CNIC as your National Tax Number (NTN). There is no separate number to apply for: you count as registered once you are e-enrolled on FBR's IRIS portal.
Registering on IRIS
- On the IRIS portal, choose Registration for Unregistered Person.
- Enter your CNIC, name, email address and mobile number.
- IRIS sends PIN codes to the mobile and the email. Enter both to verify, and IRIS then sends your password.
- Log in with your CNIC and password and submit the registration form (Form 181) from the Draft folder. You cannot file a return until this form is submitted.
Filing the return
The return of income (section 114) is filed online on IRIS with a wealth statement (section 116). Your employer's annual tax certificate gives the salary and the tax deducted to enter. The law sets 30 September after the end of the tax year as the due date for individuals; FBR sometimes extends it, so check its announcements before you leave it late.
This is an estimate for planning. Your employer's figure can differ if part of your pay is exempt, if you had a bonus or arrears, or if you changed jobs mid-year. Check your payslip and your annual tax certificate for the final figure. qaaf is not connected with FBR.
Questions about tax on salary
How much tax is deducted on a salary of Rs 100,000 in Pakistan?
Rs 500 a month for 2026-27. The annual salary is Rs 1,200,000, which sits at the top of the 1% slab. Tax is 1% of the Rs 600,000 above the tax-free limit, so Rs 6,000 a year. The same figure applied in 2025-26. In 2024-25 the rate for this slab was 5%, so the tax was Rs 2,500 a month.
What salary is tax free in Pakistan?
Salary up to Rs 600,000 a year, which is Rs 50,000 a month, carries no income tax in 2026-27. The same tax-free limit applied in 2025-26 and 2024-25. Above that, only the amount over Rs 600,000 is taxed, starting at 1%.
Is a bonus taxed separately?
No. A bonus is added to your salary for the year and taxed through the same slabs. That can push part of your income into a higher slab. Enter the bonus in the optional field and the calculator adds it to your annual income before working out the tax.
Why is my employer deducting more than this calculator shows?
Common reasons are taxable perks or allowances you did not include, a bonus or arrears paid in the month, or a catch-up deduction after a pay rise. Tax on salary is an annual figure, so the employer may correct earlier months. Ask payroll for the working behind your deduction.
Is there still a surcharge on high salaries?
Not for 2026-27. Finance Act 2026 removed the surcharge on salaried people with taxable income above Rs 10 million from tax year 2027. It was 9% in 2025-26 and 10% in 2024-25. The calculator adds it automatically when you select those years.
When do the 2026-27 tax slabs start?
They apply to salary for tax year 2027, which runs from 1 July 2026 to 30 June 2027. Employers should use them from the July 2026 payroll onwards. Salary paid for June 2026 or earlier still falls under the 2025-26 slabs.
What is the highest tax rate on salary in 2026-27?
35%, charged on income above Rs 7 million a year. The top slab is Rs 1,424,000 plus 35% of the amount over Rs 7 million. In 2025-26 the 35% rate began much lower, at Rs 4.1 million, and a 9% surcharge applied above Rs 10 million.
Tankhwah par kitna tax katta hai?
2026-27 mein Rs 50,000 mahana tak tankhwah par koi income tax nahin. Rs 100,000 mahana par Rs 500 aur Rs 150,000 par Rs 6,000 mahana tax katta hai. Apni tankhwah upar likhein, calculator saal ka tax nikal kar mahane ka hissa bata deta hai.
Pay and tax tools
Last reviewed 2 October 2026. Results are estimates; official notices always take precedence.
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