Pakistan Income Tax Calculator 2026-27

What Changed in the 2026-27 Tax Slabs

Pakistan's Budget 2026-27, presented on June 12, 2026, brought real relief for salaried taxpayers — the first meaningful cut in several years. The tax-free threshold stays at Rs. 600,000 a year, but the rates above it were reduced across the board: the old 23% bracket dropped to 20%, and the old 30% bracket dropped to 25%. The top 35% band, which previously started at Rs. 4.1 million, now only kicks in above Rs. 7 million, with two new intermediate bands (29% and 32%) added in between. The 9% surcharge that used to apply on income above Rs. 10 million has also been fully abolished for salaried individuals.

How This Calculator Works

Enter either your monthly or annual gross salary above. The calculator annualizes your income (if monthly), applies Pakistan's progressive slab system — meaning each portion of your income is taxed only at the rate for that specific bracket, not your entire salary at one flat rate — and shows your total annual tax, the equivalent monthly deduction, and what you'd actually take home.

2026-27 Salary Tax Slabs (Salaried Individuals)

• Up to Rs. 600,000: 0% (tax-free)
• Rs. 600,000 – 1,200,000: 1% of the amount above Rs. 600,000
• Rs. 1,200,000 – 2,200,000: Rs. 6,000 + 11% of the amount above Rs. 1,200,000
• Rs. 2,200,000 – 3,200,000: Rs. 116,000 + 20% of the amount above Rs. 2,200,000
• Rs. 3,200,000 – 4,100,000: Rs. 316,000 + 25% of the amount above Rs. 3,200,000
• Rs. 4,100,000 – 5,600,000: Rs. 541,000 + 29% of the amount above Rs. 4,100,000
• Rs. 5,600,000 – 7,000,000: Rs. 976,000 + 32% of the amount above Rs. 5,600,000
• Above Rs. 7,000,000: Rs. 1,424,000 + 35% of the amount above Rs. 7,000,000

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