How to calculate salary tax in Pakistan
- 1Choose whether to enter your salary per month or per year.
- 2Enter your taxable salary.
- 3Pick the tax year (2026-27 is the latest).
- 4Read the monthly and yearly tax, your take-home pay and your effective tax rate.
FBR salary tax slabs (2026-27)
- 01Annual income = monthly × 12 (if entered monthly)
- 02Tax = fixed amount for your slab + rate × (income − slab's lower bound)
- 030–600,000: 0% · 600k–1.2M: 1% · 1.2M–2.2M: 6,000 + 11% · 2.2M–3.2M: 116,000 + 20% · 3.2M–4.1M: 316,000 + 25% · 4.1M–5.6M: 541,000 + 29% · 5.6M–7M: 976,000 + 32% · above 7M: 1,424,000 + 35%
- 04Surcharge: none in 2026-27 (in 2025-26 it was 9% of the tax when annual income exceeded 10,000,000)
- 05Monthly tax = yearly tax ÷ 12
Pakistan taxes salary in slabs set by the FBR each year in the Finance Act. Income up to 600,000 a year is exempt. Above that, each slab adds a fixed amount plus a percentage on the part of your income inside that slab — so only the income above a threshold is taxed at the higher rate, not your whole salary.
For tax year 2026-27, the entry slab (600,000–1,200,000) is taxed at just 1%, rising through 11%, 20%, 25%, 29% and 32% to 35% on income above 7,000,000. The Finance Act 2026 lowered the middle rates (they were 23%, 30% and 35% in 2025-26), added the 29% and 32% slabs and removed the 9% surcharge that used to apply above 10,000,000.
The monthly deduction your employer makes is simply the yearly tax divided by 12. This calculator shows that, plus your take-home pay and the effective rate — the share of your whole salary that goes to tax, which is always lower than your top slab rate.
Salary tax calculation example
On a salary of 200,000 a month, the income tax is 13,000 a month.
That leaves a take-home pay of 187,000 a month.
Good to know
- Only your taxable salary counts — some allowances and tax credits can lower it; check your payslip.
- The effective rate is always lower than your top slab, because lower slabs are taxed at lower rates.
- Compare 2025-26 and 2026-27 to see how much less tax the new slabs take from your income.
Salary tax calculator — common questions
How much tax do I pay on my salary in Pakistan?
It depends on your yearly taxable salary and the FBR slabs. Up to 600,000 a year is tax-free; above that, each slab adds a fixed amount plus a rate on the income inside it, from 1% up to 35%.
What is the tax on a 200,000 per month salary?
That is 2,400,000 a year. In 2026-27 the tax is 116,000 + 20% of (2,400,000 − 2,200,000) = 156,000 a year, 13,000 a month (it was 162,000 a year in 2025-26).
Is there a surcharge on high salaries?
Not any more. The Finance Act 2026 removed it from tax year 2026-27. For 2025-26, a 9% surcharge was added to the calculated tax when annual taxable income exceeded 10,000,000 (10% in 2024-25).
Does this include allowances and tax credits?
No. It uses the slab rates on the taxable salary you enter. Allowances, tax credits and other income can change your actual liability — check with the FBR or a tax adviser.
Sources
- New tax slabs for salaried persons, FY 2026-27 (Pakistan Observer, 1 July 2026)
- Pakistan Finance Act 2026-27, in force 1 July 2026 (Mercans statutory alert)
- FBR salary income tax slabs 2025-26 (Finance Act 2025)
- Income tax calculator FY2025-26 (Business Recorder)
- FBR – Federal Board of Revenue
Formulas last reviewed: September 30, 2026 ·How we check our formulas