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Salary Tax Slabs — Tax Year 2027

This table is rendered directly from the rule file the calculators on this site read — not re-typed for the page. If the table is right, the calculator is right; when the next Finance Act replaces it, file, tests and pages change together. Source: FBR Circular No. 02 of 2026-27 (C. No. 1(50)S(ITP)/2026, Islamabad, 8 September 2026), section 7 - Finance Act 2026 substitution of the Table in clause (2) of Division I of Part I of the First Schedule, Income Tax Ordinance 2001 (salaried individuals). Effective 2026-07-01 · last verified 2026-11-08.

How to read it: find the band containing your annual taxable salary. Your tax = the fixed amount for that band + the band's rate × the amount above the band's floor. Example: Rs 2,400,000/year falls in the Rs 2,200,000 band → Rs 116,000 + 20% × Rs 200,000 = Rs 156,000/year = Rs 13,000/month. Run it: Salary Calculator.

Annual taxable salaryTax
Up to Rs 600,000 0%
Rs 600,001 – Rs 1,200,000 1% of the amount above Rs 600,000
Rs 1,200,001 – Rs 2,200,000 Rs 6,000 + 11% of the amount above Rs 1,200,000
Rs 2,200,001 – Rs 3,200,000 Rs 116,000 + 20% of the amount above Rs 2,200,000
Rs 3,200,001 – Rs 4,100,000 Rs 316,000 + 25% of the amount above Rs 3,200,000
Rs 4,100,001 – Rs 5,600,000 Rs 541,000 + 29% of the amount above Rs 4,100,000
Rs 5,600,001 – Rs 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

Salaried individuals only — Division I, Part I, First Schedule, Income Tax Ordinance 2001, as substituted by the Finance Act 2026. The 9% surcharge on salaried individuals above Rs 10,000,000 (section 4AB) was withdrawn by the same Act (FBR Circular No. 02 of 2026-27, section 8) and does not appear in this table.

What changed from TY2026

The Finance Act 2026 restructured the upper half of the table: the TY2026 rates of 23% and 30% became 20% and 25%, the single 35% top band was split into 29% (Rs 5.6–7.0 million), 32% (Rs 7.0 million) and 35% (above) bands, and the salaried surcharge was removed. The two lowest bands (0% to Rs 600,000; 1% to Rs 1,200,000) and the Rs 6,000 / Rs 116,000 fixed points did not move — which is why a stale table is hardest to spot at ordinary salaries: at Rs 100,000/month the old and new tables agree, and they only begin to diverge above Rs 2,200,000 a year. If your payslip was computed on a stale table, the Payslip Checker can identify which one.