New Salary Tax Slabs Pakistan 2026-27 — Rates + Calculator

Q: What are the new salary tax slabs in Pakistan for 2026-27?

The Finance Act 2026 sets eight salary tax brackets: 0% up to PKR 600,000; 1% from 600,000 to 1,200,000; 11% from 1,200,000 to 2,200,000; 20% from 2,200,000 to 3,200,000; 25% from 3,200,000 to 4,100,000; 29% from 4,100,000 to 5,600,000; 32% from 5,600,000 to 7,000,000; and 35% above 7,000,000. These rates apply to income earned from 1 July 2026 through 30 June 2027.

Q: Has the 9% surcharge on income above PKR 10 million been removed?

Yes. The Finance Act 2026 scrapped the 9% surcharge that applied to salaried income above PKR 10 million under the Finance Act 2025. Salaried high earners no longer pay the extra surcharge on top of their slab tax.

Q: When do the 2026-27 tax slabs take effect?

The Finance Act 2026 slabs apply to income earned from 1 July 2026 through 30 June 2027 (tax year 2026-27). The previous Finance Act 2025 (2025-26) rates applied up to 30 June 2026.

Q: How much salary tax will I save under the 2026-27 budget?

Middle and upper-middle earners save the most because the 23% bracket dropped to 20% and the 30% bracket dropped to 25%. For example, a salary of PKR 300,000/month (3.6M/year) sees annual tax fall from about 466,000 to 416,000 — a saving of roughly PKR 50,000. A salary of PKR 500,000/month saves around PKR 177,000 a year, helped further by the removed 9% surcharge.

The federal budget for 2026-27 delivered the biggest salary tax relief Pakistan's middle-income earners have seen in years. The Finance Act 2026 cut two key rates, removed the surcharge on high incomes, and restructured the upper brackets. Here are the full slabs now in force, exactly what changed versus 2025-26, worked examples, and a free calculator to check your own number.

In force now: these rates were enacted in the Finance Act 2026 and apply to salary earned from 1 July 2026 through 30 June 2027 (tax year 2026-27). The previous Finance Act 2025 rates applied up to 30 June 2026.

Salary tax slabs for 2026-27

The structure has eight brackets. Tax is charged slab-by-slab on your annual taxable salary, with a fixed amount carried forward at the start of each higher bracket:

Salaried Tax Slabs — Tax Year 2026-27

Income Range (PKR)	Rate	Fixed Amount
0 – 600,000	0.00%	0
600,000 – 1,200,000	1%	0
1,200,000 – 2,200,000	11%	6,000
2,200,000 – 3,200,000	20%	116,000
3,200,000 – 4,100,000	25%	316,000
4,100,000 – 5,600,000	29%	541,000
5,600,000 – 7,000,000	32%	976,000
7,000,000 – ∞	35%	1,424,000

Want your exact figure for the month or year? Use the calculator — it applies these slabs automatically and shows the slab-by-slab breakdown.

Try it now

Calculate your salaried tax

Open calculator →

What changed versus 2025-26

Compared with the Finance Act 2025 (the 2025-26 slabs), the Finance Act 2026 made four headline changes:

23% bracket cut to 20%. Income between PKR 2.2M and 3.2M is now taxed at 20% instead of 23%.
30% bracket cut to 25%. Income between PKR 3.2M and 4.1M drops from 30% to 25%.
Two new intermediate brackets. The single 35%-above-4.1M band is replaced with a smoother 29% (4.1M–5.6M) and 32% (5.6M–7M) ramp, so the 35% top rate now only bites above PKR 7M.
9% surcharge removed. The surcharge on salaried income above PKR 10M under the Finance Act 2025 is scrapped entirely.

The entry brackets are unchanged: income up to PKR 600,000 stays tax-free, and the 600,000–1,200,000 band stays at 1%.

Worked examples: how much you'll save

Using annual taxable salary (monthly figure × 12), here is the difference between the previous 2025-26 rates and the 2026-27 rates now in force:

PKR 200,000/month (2.4M/year): tax falls from about 162,000 to 156,000 — roughly PKR 6,000 saved per year.
PKR 300,000/month (3.6M/year): tax falls from about 466,000 to 416,000 — roughly PKR 50,000 saved per year.
PKR 500,000/month (6.0M/year): tax falls from about 1,281,000 to 1,104,000 — roughly PKR 177,000 saved per year, helped by the dropped surcharge.

The higher your salary above PKR 2.2M, the larger the saving — both from the rate cuts and from the smoother upper brackets.

Who benefits most

Salaried professionals earning between PKR 2.2M and 7M a year see the clearest relief, since that is exactly the range where the 23% and 30% rates were sitting. High earners above PKR 10M get an additional benefit from the removed surcharge. Lower earners up to PKR 1.2M see no change — their rates were already at the floor.

Frequently asked questions

What are the new salary tax slabs in Pakistan for 2026-27?

The Finance Act 2026 sets eight brackets: 0% up to 600,000; 1% to 1,200,000; 11% to 2,200,000; 20% to 3,200,000; 25% to 4,100,000; 29% to 5,600,000; 32% to 7,000,000; and 35% above 7,000,000. They apply for tax year 2026-27.

Has the 9% surcharge on income above PKR 10 million been removed?

Yes — the Finance Act 2026 scrapped the 9% surcharge that applied to salaried income above PKR 10M under the Finance Act 2025. Salaried high earners no longer pay it on top of their slab tax.

When do the 2026-27 tax slabs take effect?

The new slabs apply to income earned from 1 July 2026 to 30 June 2027. The previous 2025-26 rates applied up to 30 June 2026.

How much salary tax will I save under the 2026-27 budget?

Middle and upper-middle earners save the most. A PKR 300,000/month salary saves about PKR 50,000 a year; a PKR 500,000/month salary saves around PKR 177,000. Lower earners up to PKR 1.2M see no change.

Are these 2026-27 salary tax rates final?

Yes. They were enacted in the Finance Act 2026 and notified by the FBR, and apply for tax year 2026-27 (1 July 2026 – 30 June 2027).

Not sure how the new budget affects you?

Book a quick consultation with a registered tax practitioner and get a clear answer for your salary, AOP, or freelance income under the Finance Act 2026.

Book a consultation →