How Pakistan Income Tax Is Calculated (Salaried, FY2026-27)
Pakistan taxes salaried individuals using progressive slabs set by the Finance Act — you only pay each rate on the portion of income within that band, similar to income tax systems elsewhere. The FY2026-27 slabs (effective 1 July 2026) reduced several middle-band rates and removed the 9% salaried-class surcharge compared to FY2025-26.
Rs 600,000 – 1,200,000: 1% of amount above Rs 600,000
Rs 1,200,000 – 2,200,000: Rs 6,000 + 11% above Rs 1,200,000
Rs 2,200,000 – 3,200,000: Rs 116,000 + 20% above Rs 2,200,000
Rs 3,200,000 – 4,100,000: Rs 316,000 + 25% above Rs 3,200,000
Rs 4,100,000 – 5,600,000: Rs 541,000 + 29% above Rs 4,100,000
Rs 5,600,000 – 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
What Changed from FY2025-26
The FY2026-27 budget cut rates across four middle brackets, split the old single top rate into three new bands (29%, 32%, 35%), moved the top-rate threshold from Rs 4.1 million to Rs 7 million, and abolished the 9% surcharge that previously applied to salaried-class income above Rs 10 million.
Salaried vs. Non-Salaried (Business) Income
These slabs apply specifically to salaried individuals, defined as those where salary makes up more than 75% of taxable income. Non-salaried individuals and Associations of Persons (AOPs) are taxed under a separate slab structure not covered by this calculator.
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📅 Last Updated: September 2026.