Income Tax Slabs 2026-27 Pakistan (Salary Tax Card)
FBR salary income tax slabs for 2026-27 Pakistan, effective 1 July 2026 — every bracket from 0% to 35% in one clear table. Not tax advice.
You heard the budget cut salaried taxes. Now you just want the actual numbers the rates that apply to your salary, in one place, without wading through a Finance Act.
Here they are. This is a plain reference to the salary income tax slabs for 2026-27 (Tax Year 2027) in Pakistan, effective 1 July 2026 — every bracket from 0% up to 35%, in one clear table, with a short note on what changed and where to work out your own figure. No advice, no promises, just the rates.
Key Takeaways
- For 2026-27 (Tax Year 2027, effective 1 July 2026), salaried income tax runs across eight bands, from 0% up to 35% (Finance Act 2026 / FBR, retrieved 2026-08-13).
- The first Rs 600,000 of annual income is tax-free — nothing is due until you cross that.
- The top 35% rate now applies only above Rs 7,000,000 a year, and the 9% surcharge (previously on income above Rs 10 million) was abolished for this year.
- These are the rates you'll be taxed under on salary earned from July 2026. The return you file this season (due 30 September 2026) is for last year — see the filing guide.
This page is general information, not tax advice. The figures below are the slab rates, not a calculation of what you personally owe — that depends on your exact taxable income and allowances. Confirm your position with FBR or a tax professional, and work out your own number with our Salary Tax Calculator.
What are the income tax slabs for 2026-27 in Pakistan?
The income tax slabs are the bands of annual income that each carry a different tax rate as your income rises into a higher band, only the portion inside that band is taxed at the higher rate. For salaried individuals in 2026-27 (Tax Year 2027), they are:
Salaried individuals — annual taxable income (Tax Year 2027, effective 1 July 2026):
| Annual taxable income (PKR) | Tax |
|---|---|
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 1% of the amount over 600,000 |
| 1,200,001 – 2,200,000 | 6,000 + 11% of the amount over 1,200,000 |
| 2,200,001 – 3,200,000 | 116,000 + 20% of the amount over 2,200,000 |
| 3,200,001 – 4,100,000 | 316,000 + 25% of the amount over 3,200,000 |
| 4,100,001 – 5,600,000 | 541,000 + 29% of the amount over 4,100,000 |
| 5,600,001 – 7,000,000 | 976,000 + 32% of the amount over 5,600,000 |
| Above 7,000,000 | 1,424,000 + 35% of the amount over 7,000,000 |
Verified 2026-08-13 against the FBR Budget 2026-27 Salient Features, the PwC Tax Memorandum on Finance Bill 2026, and Mercans' Finance Act 2026-27 alert all four cross-checks match, and each base amount equals the cumulative tax at the bottom of the previous band.
The key thing to read correctly: the rate on each row applies only to the slice of income within that band, not to your whole salary. Someone earning Rs 1,300,000 a year doesn't pay 11% on all of it — they pay the fixed Rs 6,000 from the band below, plus 11% on the Rs 100,000 that sits inside the third band. This is why your average tax rate is always lower than your top slab rate.
What changed from last year?
The 2026-27 budget lowered rates for several salaried bands rather than raising the exemption. The headline changes:
- The Rs 2.2m–3.2m band was cut from 23% to 20%, and the band above it (Rs 3.2m–4.1m) from 30% to 25% — real rate cuts for the salaried middle and upper-middle.
- The old single top band (35% from Rs 4.1m) was split into three steps — 29%, then 32%, then 35% — so the full 35% now bites only above Rs 7m a year.
- The 9% surcharge that previously applied to individuals with income above Rs 10 million was abolished for 2026-27.
- The Rs 600,000 tax-free threshold is unchanged, so anyone earning up to that still owes nothing.
If your annual taxable income is at or below Rs 2.2m (about Rs 183,000 a month), your rate is unchanged from last year; the cuts are concentrated in the bands above that.
How much tax will I pay on my salary?
Read your income against the table, then apply the rate only to the slice inside your band. Two quick illustrations (for reading the table — not a statement of what you personally owe):
- Rs 100,000/month = Rs 1,200,000/year. That sits at the top of the second band: 1% of (1,200,000 − 600,000) = Rs 6,000 for the year.
- Rs 200,000/month = Rs 2,400,000/year. That sits in the fourth band: 116,000 + 20% of (2,400,000 − 2,200,000) = Rs 156,000 for the year.
For your exact figure — with allowances and your real taxable income — don't do it by hand. Run your monthly salary through Pebble's Salary Tax Calculator, or read our plain walkthrough of how much tax you'll pay on your salary, which works through common salaries step by step.
When is the filing deadline, and how do I file?
These rates apply to salary earned from 1 July 2026. Separately, the annual return most people file this season is due 30 September 2026 and covers Tax Year 2026 (last year's income, under last year's rates) — a distinction that trips up almost every first-time filer.
We don't repeat the process here — our complete guide to filing your income tax return on IRIS covers registration, the step-by-step filing flow, and the deadline in full. New to the portal entirely? Start with how to register on IRIS and find your NTN. Not sure filing is worth it? See filer vs non-filer in Pakistan.
Our take: The rate table changes once a year; your habit of filing on time changes your finances every year. Bookmark the number, but don't let checking the slab become the reason you delay the return.
Frequently Asked Questions
What is the tax-free income limit in Pakistan for 2026-27?
The first Rs 600,000 of annual taxable income is taxed at 0% for salaried individuals in 2026-27 — you owe nothing until your income crosses that line. Above it, only the portion inside each higher band is taxed at that band's rate, so crossing the threshold does not tax your whole income.
What is the highest income tax rate for salaried people in 2026-27?
The top rate is 35%, and for 2026-27 it applies only to the portion of annual income above Rs 7,000,000. Income below that is taxed at the lower bands beneath it. The 9% surcharge that previously applied to individuals with income above Rs 10 million was abolished for this year.
Do these slabs apply from July 2026?
Yes. These are the Tax Year 2027 rates, effective 1 July 2026, under the Finance Act 2026. They apply to salary you earn from that date. The return you file by 30 September 2026 is for Tax Year 2026 and uses the previous year's rates.
Is the tax surcharge still applicable in 2026-27?
No. The 9% surcharge that previously applied to individuals with income above Rs 10 million was abolished for 2026-27. This is one of the year's main changes for higher earners, alongside the rate cuts in the middle bands.
Where can I calculate my exact salary tax?
Use Pebble's Salary Tax Calculator — enter your monthly salary and it applies the current slabs for you. For a worked explanation of the maths, see how much tax you'll pay on your salary in Pakistan. For anything binding, confirm with FBR or a tax adviser.
Your next step
Now you have the rates. If you'd like plain, Pakistan-specific money explainers — tax, saving, investing — as we publish them, join the Pebble newsletter and learn at your own pace. No jargon, no hype.
Last updated: 2026-08-13 · Rates effective: 1 July 2026 (Tax Year 2027). This page is refreshed with each federal budget. If you spot a figure that doesn't match FBR, please tell us — see our corrections policy.
Sources
- Federal Board of Revenue (FBR) — Budget 2026-27 Salient Features (primary source for the slab rates and the surcharge abolition). Retrieved 2026-08-13. https://www.fbr.gov.pk/
- PwC Pakistan — Tax Memorandum on the Finance Bill 2026 (salaried slab schedule, Tax Year 2027). Retrieved 2026-08-13. https://www.pwc.com.pk/
- Mercans — Pakistan Finance Act 2026-27 statutory alert (independent confirmation of the full salaried slab table, effective 1 July 2026). Retrieved 2026-08-13. https://mercans.com/