Salary Tax Slabs Pakistan 2026-27
The complete FBR bracket table for salaried, AOP, and freelancer income for FY 2026-27.
Salaried tax slabs (2026-27)
Applies when salary is more than 75% of total income. The Finance Act 2026 cut salaried rates for income above 2.2M (23%→20% and 30%→25%), added two new intermediate brackets (29% and 32%), moved the 35% top rate to apply only above 7M, and abolished the 9% surcharge on income above 10M.
| Annual income (PKR) | Rate on amount in this slab | Fixed tax for lower slabs |
|---|---|---|
| 0 – 600,000 | Tax free (0%) | — |
| 600,000 – 1,200,000 | 1% | — |
| 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 |
| Above 7,000,000 | 35% | 1,424,000 |
The Finance Act 2026 abolished the salaried surcharge — there is no longer an extra charge on salaried income above 10,000,000.
AOP & non-salaried tax slabs (2026-27)
Applies to associations of persons, partnerships, sole proprietors, and individuals whose salary is less than 75% of total income.
| Annual income (PKR) | Rate on amount in this slab | Fixed tax for lower slabs |
|---|---|---|
| 0 – 600,000 | Tax free (0%) | — |
| 600,000 – 1,200,000 | 15% | — |
| 1,200,000 – 1,600,000 | 20% | 90,000 |
| 1,600,000 – 3,200,000 | 30% | 170,000 |
| 3,200,000 – 5,600,000 | 40% | 650,000 |
| Above 5,600,000 | 45% | 1,610,000 |
Plus a 10% surcharge on calculated tax if income exceeds 10,000,000. Open AOP calculator →
Freelancer / IT export rates (Section 154A)
Section 154A · IT/IT-enabled services export. The Finance Act 2026 left Section 154A export rates unchanged: 0.25% (PSEB-registered, filer) and 1% (non-PSEB, filer), treated as final tax. Income via banking channels with ≥80% converted to PKR; bank issues PRC; PSEB registration via TechDestination.
Salary tax slab FAQs
What are the salary tax slabs in Pakistan for 2026-27?
For salaried individuals: 0% up to PKR 600,000; 1% on 600k–1.2M; 11% on 1.2M–2.2M; 20% on 2.2M–3.2M; 25% on 3.2M–4.1M; 29% on 4.1M–5.6M; 32% on 5.6M–7M; 35% above 7M. The Finance Act 2026 abolished the 9% surcharge that previously applied to salaried income above PKR 10 million.
Have salary tax slabs changed from 2025-26 to 2026-27?
Yes. The Finance Act 2026 cut salaried rates above PKR 2.2 million (23% → 20% and 30% → 25%), added two new intermediate brackets (29% and 32%), moved the 35% top rate to apply only above PKR 7 million, and abolished the 9% salaried surcharge. Income up to PKR 2.2 million is unchanged, and AOP / non-salaried slabs also remain unchanged.
What is the tax-free salary limit in Pakistan?
PKR 600,000 per year (PKR 50,000 per month) for salaried individuals. This basic exemption has been unchanged since 2022-23 and applies to all three tax years currently supported by FBR.
Are AOP and salaried tax slabs the same?
No. AOP / non-salaried individuals face significantly higher rates: 15% above PKR 600k (vs 1% for salaried), rising to 45% above PKR 5.6M (vs 35% above 7M for salaried).
Is there a surcharge on high salaried income?
Not for salaried individuals — the Finance Act 2026 abolished the 9% surcharge that previously applied to salaried taxable income above PKR 10 million. AOP / non-salaried taxpayers still pay a 10% surcharge on their calculated income tax above the same threshold.
Run the numbers for your salary
Knowing the slabs is one thing — seeing exact rupees on your salary takes seconds.