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Salary tax slabs 2026-27 Pakistan: how much tax you pay

The salaried income tax slabs for tax year 2027 (2026-27) in Pakistan, how to work out monthly tax, worked examples, and what employers must deduct.

Munshi Team · 18 Oct 2026 · 2 min read

Every June the budget changes salary tax, and every July staff ask the same question: how much will be cut from my salary now? Here are the salaried slabs for tax year 2027 (1 July 2026 to 30 June 2027) from the Finance Act 2026, and how to work out the tax by hand.

The salary tax calculator gives monthly tax and take-home pay straight away.

The slabs for tax year 2027

Yearly taxable salary Tax
Up to Rs 6,00,000 0
Rs 6,00,001 – 12,00,000 1% of the amount over Rs 6,00,000
Rs 12,00,001 – 22,00,000 Rs 6,000 + 11% of the amount over Rs 12,00,000
Rs 22,00,001 – 32,00,000 Rs 1,16,000 + 20% of the amount over Rs 22,00,000
Rs 32,00,001 – 41,00,000 Rs 3,16,000 + 25% of the amount over Rs 32,00,000
Rs 41,00,001 – 56,00,000 Rs 5,41,000 + 29% of the amount over Rs 41,00,000
Rs 56,00,001 – 70,00,000 Rs 9,76,000 + 32% of the amount over Rs 56,00,000
Above Rs 70,00,000 Rs 14,24,000 + 35% of the amount over Rs 70,00,000

Check FBR's notification for any later change before filing.

How to work it out

  1. Multiply the monthly taxable salary by 12.
  2. Find the slab it falls in.
  3. Take that slab's fixed amount, and add the slab's rate on the part above where the slab starts.
  4. Divide by 12 for the monthly deduction.

Worked examples

Monthly salary Yearly Yearly tax Monthly tax Take-home a month
Rs 50,000 Rs 6,00,000 0 0 Rs 50,000
Rs 80,000 Rs 9,60,000 Rs 3,600 Rs 300 Rs 79,700
Rs 1,50,000 Rs 18,00,000 Rs 72,000 Rs 6,000 Rs 1,44,000
Rs 3,00,000 Rs 36,00,000 Rs 4,16,000 Rs 34,667 Rs 2,65,333

For Rs 3,00,000 a month: Rs 36,00,000 is in the 25% slab. Rs 3,16,000 + 25% of Rs 4,00,000 = Rs 4,16,000 a year.

What employers must do

An employer deducts the tax from salary each month, deposits it with FBR and files the withholding statements. If an employee joins mid-year or gets a raise, the yearly estimate changes, so the monthly deduction should be adjusted for the rest of the year. Allowances the law exempts lower the taxable salary.

Payroll that keeps up

In Munshi HR & payroll, you enter the tax slabs once and the tax is worked out on each salary slip from the yearly salary, along with advances, loans, absent days and overtime. The bank salary file is ready at month end.

Work out your own in the salary tax calculator, or start free to run payroll for your staff.

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