Income Tax Calculator Pakistan 2026-27

Addon.pk · FBR Tax Year 2026-27

Income Tax Calculator Pakistan

For salaried individuals · Finance Act 2026 slabs

FBR TAX ESTIMATE TY 2027
Annual Taxable Income Rs 0
Enter your salary above to see the bracket-by-bracket breakdown.
Total Annual Tax Rs 0
Monthly Tax (withheld) Rs 0
Effective Tax Rate 0.00%
Monthly Take-Home Rs 0
Annual Take-Home Rs 0

Estimate only, for salaried individuals under Finance Act 2026 (Tax Year 2027). Excludes zakat, medical allowance exemptions, and other deductions your employer may apply. Confirm your exact liability with FBR or a tax advisor before filing.

What is Income Tax?

Income tax is the tax the Federal Board of Revenue (FBR) charges on your income every year. For salaried persons, this tax is calculated on your total annual salary and deducted monthly at source by your company OR employer, it means already subtracted from your paycheck before you receive it, rather than paid separately at year end.

Pakistan uses a progressive slab system: your income is divided into brackets, and each bracket is taxed at its own rate. This means you do not pay one flat rate on your entire salary, only the portion of your income that falls within a higher bracket is taxed at that bracket’s rate.

How to Use Income Tax Calculator

  1. Select Monthly or Annual to match how you know your salary.
  2. Enter your gross salary amount.
  3. See your instant tax breakdown, no “Calculate” button needed, results update as you type.

Income Tax Slabs 2026 to 27 (Salaried Individuals)

As per the Finance Act 2026, effective July 1, 2026 (Tax Year 2027):

Annual Taxable IncomeTax Rate
Up to Rs 600,0000%
Rs 600,000 – 1,200,0001% of amount exceeding Rs 600,000
Rs 1,200,000 – 2,200,000Rs 6,000 + 11% of amount exceeding Rs 1,200,000
Rs 2,200,000 – 3,200,000Rs 116,000 + 20% of amount exceeding Rs 2,200,000
Rs 3,200,000 – 4,100,000Rs 316,000 + 25% of amount exceeding Rs 3,200,000
Rs 4,100,000 – 5,600,000Rs 541,000 + 29% of amount exceeding Rs 4,100,000
Rs 5,600,000 – 7,000,000Rs 976,000 + 32% of amount exceeding Rs 5,600,000
Above Rs 7,000,000Rs 1,424,000 + 35% of amount exceeding Rs 7,000,000

Note: The 9% surcharge that previously applied to individuals earning above Rs 10 million annually has been fully repealed for salaried individuals starting Tax Year 2027. It still applies to non-salaried and business income.

These slabs apply to salaried individuals only, where salary makes up more than 75% of total taxable income. Business owners, freelancers, and non-salaried earners are taxed under a separate, generally higher slab table.

Related Tools

PTA Tax Calculator Pakistan

FAQs

How is income tax calculated in Pakistan?

Your annual salary is divided into tax brackets, and each part of your income is taxed at that bracket’s rate. Your employer calculates this automatically and withholds the tax monthly from your paycheck, based on your projected annual salary.

Is income up to Rs 600,000 really tax-free?

Yes. For Tax Year 2027, salaried persons earning up to Rs 600,000 annually (Rs 50,000/month) pay zero income tax.

What is the difference between salaried and non-salaried tax slabs?

Salaried persons, where salary makes up 75% or more of their taxable income, are taxed under a lower, dedicated slab table with tax withheld monthly by their company or employer. Non-salaried individuals, business owners, freelancers, and individuals with mixed income are classified under a distinct, frequently higher slab table and are required to pay tax through advance/quarterly payments rather than monthly withholding.

Has the high-income surcharge been removed?

Yes, for salaried individuals only. Starting in the 2027 tax year, salaried taxpayers will no longer be subject to the 9% surcharge that was previously imposed on annual income exceeding Rs 10 million prior to July 2026. It remains in effect for non-salaried and business income.

When is the filing deadline for Tax Year 2027?

The anticipated filing deadline for the 2027 tax year is September 30, 2027. Confirm the exact date on the official FBR website closer to the deadline, as it is occasionally extended.

Subscribe to our Newsletter

Subscribe to our email newsletter to get the latest news delivered right to your email.
Subscribe to updated 🗞️