# Income Tax Calculator Pakistan 2026-27

Source: Searchable (https://searchable.pk/tools/tax/income-tax-calculator)
Type: Calculator
Rates reviewed: 15 Sept 2026
Retrieved: 15 Sept 2026

Free salary tax calculator for Pakistan: enter your monthly salary and see income tax under the FBR 2026-27 slabs, your take-home, effective rate and slab.

Version 1.2.0. Inputs: Monthly income, This amount is, Income type, Tax year.

## Worked example (default inputs)

- Monthly income: 250000 PKR
- This amount is: monthly
- Income type: salaried
- Tax year: 2026-27

**Monthly income tax: Rs 23,000**

On Rs 3,000,000 per year you pay Rs 276,000 in tax, an effective rate of 9.2%. Your marginal rate is 20%.

### Annual

- Taxable income: Rs 3,000,000
- Tax before surcharge: Rs 276,000
- Total annual tax: Rs 276,000
- Effective tax rate: 9.2%

### Monthly

- Gross monthly: Rs 250,000
- Monthly tax: Rs 23,000
- Take-home (before other deductions): Rs 227,000

### Your slab (Tax Year 2027 (FY 2026-27))

- Rs 2,200,000 – Rs 3,200,000: Rs 116,000 + 20% of amount over Rs 2,200,000

## How it is calculated

Pakistan taxes individual income in **progressive slabs**. Only the portion of income inside each slab is taxed at that slab's rate, so moving into a higher slab never reduces take-home pay.

For salaried individuals (where salary is more than 75% of total income) the Finance Act sets a separate, lower schedule than for business individuals.

**Formula:** *tax = fixed amount for your slab + rate × (taxable income − slab floor)*.

A **surcharge** applies to the tax amount when taxable income exceeds Rs 10 million, 10% for non-salaried individuals and AOPs. Finance Act 2026 withdrew the 9% salaried surcharge from 1 July 2026, and eased the middle slabs (23% → 20%, 30% → 25%, with new 29% and 32% bands before the 35% top rate now starting at Rs 7 million).

This calculator uses annual taxable income; monthly amounts are simply divided by 12, which is how employers compute the monthly deduction under section 149 of the Income Tax Ordinance 2001.

## Frequently asked questions

**Is income up to Rs 600,000 tax free?**

Yes. The first Rs 600,000 of annual taxable income (Rs 50,000 per month) is exempt for both salaried and non-salaried individuals.

**What counts as 'salaried'?**

If your salary is more than 75% of your total taxable income, you are taxed under the salaried schedule, which has lower rates.

**Does this include the surcharge?**

Yes for business / non-salaried income above Rs 10 million (10% of the tax). Salaried individuals no longer pay a surcharge from tax year 2027; select FY 2025-26 to see the old 9% surcharge.

**Are provident fund or medical allowance deducted first?**

Certain allowances and contributions are exempt or treated separately. This calculator taxes the figure you enter; enter your taxable salary for the most accurate result.

**How often do the slabs change?**

Usually every year in the Federal Budget (June), effective 1 July. Searchable updates this tool when the Finance Act is passed and shows the review date above.

## Sources

- Finance Act 2026: First Schedule, Part I, Division I (salaried slabs revised; s.4AB surcharge withdrawn for salaried) (Federal Board of Revenue): https://fbr.gov.pk/

How to cite: "Income Tax Calculator Pakistan 2026-27", Searchable, rates reviewed 15 Sept 2026, https://searchable.pk/tools/tax/income-tax-calculator