Salaried tax in Pakistan is set each year in the Finance Act and applied by employers monthly, so the number that matters is the monthly deduction against a monthly salary. The figures below come from our salary tax calculator for Pakistan, which carries both the FY 2026-27 slabs and last year's for comparison.
The FY 2026-27 slabs
Tax is charged on annual taxable salary in slices, with a fixed amount for the slices below plus a rate on the slice you are in:
| Annual taxable income | Rate on this slice | Fixed amount from lower slices |
|---|---|---|
| Up to Rs 600,000 | 0% | Rs 0 |
| Rs 600,001 to 1,200,000 | 1% | Rs 0 |
| Rs 1,200,001 to 2,200,000 | 11% | Rs 6,000 |
| Rs 2,200,001 to 3,200,000 | 20% | Rs 116,000 |
| Rs 3,200,001 to 4,100,000 | 25% | Rs 316,000 |
| Rs 4,100,001 to 5,600,000 | 29% | Rs 541,000 |
| Rs 5,600,001 to 7,000,000 | 32% | Rs 976,000 |
| Above Rs 7,000,000 | 35% | Rs 1,424,000 |
The 20% and 25% bands are the change from FY 2025-26, when the same income ranges were taxed at 23% and 30%. The 9% surcharge that applied above Rs 10 million last year is also gone from the current-year table.
Six monthly salaries
| Monthly salary | Annual income | Annual tax | Monthly tax | Monthly take-home | Effective rate |
|---|---|---|---|---|---|
| Rs 50,000 | Rs 600,000 | Rs 0 | Rs 0 | Rs 50,000 | 0% |
| Rs 100,000 | Rs 1,200,000 | Rs 6,000 | Rs 500 | Rs 99,500 | 0.5% |
| Rs 150,000 | Rs 1,800,000 | Rs 72,000 | Rs 6,000 | Rs 144,000 | 4.0% |
| Rs 200,000 | Rs 2,400,000 | Rs 156,000 | Rs 13,000 | Rs 187,000 | 6.5% |
| Rs 300,000 | Rs 3,600,000 | Rs 416,000 | Rs 34,667 | Rs 265,333 | 11.6% |
| Rs 500,000 | Rs 6,000,000 | Rs 1,104,000 | Rs 92,000 | Rs 408,000 | 18.4% |
Rs 50,000 a month is exactly the Rs 600,000 exemption, so it pays nothing. Rs 100,000 a month sits at the top of the 1% band and pays Rs 500 a month. The steep part starts after that: Rs 150,000 a month is in the 11% band and the deduction jumps to Rs 6,000.
Reading the fixed amounts
Take Rs 200,000 a month, or Rs 2,400,000 a year. That is in the 20% band, which starts at Rs 2,200,000. The tax is the fixed Rs 116,000 for everything below the band, plus 20% of the Rs 200,000 inside it, which is Rs 40,000. Total Rs 156,000, or Rs 13,000 a month.
The fixed amount is what makes the effective rate in the last column so much lower than the slab rate. Someone in the 20% band pays 6.5% of their income overall, because the first Rs 2.2 million was taxed at 0%, 1% and 11%.
What counts as taxable salary
The slabs apply to taxable salary, which is gross salary less any exempt allowances. Medical allowance up to 10% of basic salary is the common exemption; provident fund contributions and some other items also reduce the base under specific rules. The calculator takes the taxable figure you give it, so if your payslip shows an exempt medical allowance, subtract it before entering the number.
Employers deduct tax monthly under Section 149 and issue a certificate at year end. The annual return reconciles the total; if the deduction was made on gross salary without adjusting for exemptions, the return is where the difference comes back.
Two more numbers on the same payslip
Sales tax is the other rate people ask about, and it is a separate system: 18% on most goods, charged on purchases rather than income. Our sales tax calculator for Pakistan adds it to a price or extracts it from an inclusive one.
And once a year, zakat: 2.5% of qualifying wealth held for a lunar year above the nisab threshold. It is not deducted from salary but is calculated on savings, gold and investments, which the zakat calculator totals with the current nisab check.