Income Tax Slabs 2026-27 Pakistan

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Quick answerFor FY 2026-27 (Tax Year 2027), salaried income up to Rs 600,000 a year is tax-free. Above that, eight progressive slabs apply from 1% to 35%. Business and other non-salaried individuals pay 15% to 45% above the same Rs 600,000 threshold.

Salaried individuals: FY 2026-27

These rates apply when salary is more than 75% of your taxable income. They come from Division I, Part I of the First Schedule to the Income Tax Ordinance 2001, as amended by the Finance Act 2026.

Salaried slabs, FY 2026-27 (Tax Year 2027). No surcharge applies.
Annual taxable incomeTax payable
Rs 0 – Rs 600,0000% (no tax)
Rs 600,001 – Rs 1,200,0001% of amount above Rs 600,000
Rs 1,200,001 – Rs 2,200,000Rs 6,000 + 11% of amount above Rs 1,200,000
Rs 2,200,001 – Rs 3,200,000Rs 116,000 + 20% of amount above Rs 2,200,000
Rs 3,200,001 – Rs 4,100,000Rs 316,000 + 25% of amount above Rs 3,200,000
Rs 4,100,001 – Rs 5,600,000Rs 541,000 + 29% of amount above Rs 4,100,000
Rs 5,600,001 – Rs 7,000,000Rs 976,000 + 32% of amount above Rs 5,600,000
Above Rs 7,000,000Rs 1,424,000 + 35% of amount above Rs 7,000,000

Calculate my salary tax

Business, freelancers and AOPs: FY 2026-27

These rates apply to individuals whose income is mainly from business, profession, rent or other sources, and to associations of persons (AOPs). Where taxable income exceeds Rs 10 million, a 10% surcharge is added to the tax.

Non-salaried individual and AOP slabs, FY 2026-27.
Annual taxable incomeTax payable
Rs 0 – Rs 600,0000% (no tax)
Rs 600,001 – Rs 1,200,00015% of amount above Rs 600,000
Rs 1,200,001 – Rs 1,600,000Rs 90,000 + 20% of amount above Rs 1,200,000
Rs 1,600,001 – Rs 3,200,000Rs 170,000 + 30% of amount above Rs 1,600,000
Rs 3,200,001 – Rs 5,600,000Rs 650,000 + 40% of amount above Rs 3,200,000
Above Rs 5,600,000Rs 1,610,000 + 45% of amount above Rs 5,600,000

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Salaried individuals: FY 2025-26 (previous year)

A 9% surcharge applied on top of these rates when income exceeded Rs 10 million.

Salaried slabs, FY 2025-26 (Tax Year 2026).
Annual taxable incomeTax payable
Rs 0 – Rs 600,0000% (no tax)
Rs 600,001 – Rs 1,200,0001% of amount above Rs 600,000
Rs 1,200,001 – Rs 2,200,000Rs 6,000 + 11% of amount above Rs 1,200,000
Rs 2,200,001 – Rs 3,200,000Rs 116,000 + 23% of amount above Rs 2,200,000
Rs 3,200,001 – Rs 4,100,000Rs 346,000 + 30% of amount above Rs 3,200,000
Above Rs 4,100,000Rs 616,000 + 35% of amount above Rs 4,100,000

How much do you save in 2026-27?

Monthly tax under each year's slabs (including the 9% surcharge for FY 2025-26 where it applied):

Monthly salaryFY 2025-26 taxFY 2026-27 taxMonthly saving
Rs 100,000Rs 500Rs 500Rs 0
Rs 150,000Rs 6,000Rs 6,000Rs 0
Rs 200,000Rs 13,500Rs 13,000Rs 500
Rs 250,000Rs 25,000Rs 23,000Rs 2,000
Rs 300,000Rs 38,833Rs 34,667Rs 4,167
Rs 400,000Rs 71,750Rs 62,000Rs 9,750
Rs 500,000Rs 106,750Rs 92,000Rs 14,750
Rs 750,000Rs 194,250Rs 177,000Rs 17,250
Rs 1,000,000Rs 307,108Rs 264,500Rs 42,608
Rs 1,500,000Rs 497,858Rs 439,500Rs 58,358

Salaries up to Rs 183,333 a month pay the same tax in both years. Above that, the lower middle rates and the higher threshold for the 35% rate reduce tax for every salaried person.

How to read a slab table

Each row has two parts: a fixed amount and a percentage. The fixed amount is simply the total tax on all the slabs below. It saves you from adding up every slab by hand. So for income of Rs 4,500,000 you start at the Rs 4,100,000 row, take its fixed Rs 541,000, and add 29% of the Rs 400,000 above the lower limit. That's Rs 657,000 in total.

Keep this in mind: the rate in your row is your marginal rate. It's what you pay on your next rupee, not on all your income. Your effective rate, the share of total income that goes to tax, is always lower.

Frequently asked questions

What are the income tax slabs for salaried persons in 2026-27?

0% up to Rs 600,000; 1% from Rs 600,001 to 1,200,000; 11% to Rs 2,200,000; 20% to Rs 3,200,000; 25% to Rs 4,100,000; 29% to Rs 5,600,000; 32% to Rs 7,000,000; and 35% above Rs 7,000,000. Each rate applies only to income inside that slab.

What are the tax slabs for business and non-salaried individuals?

0% up to Rs 600,000; 15% to Rs 1,200,000; 20% to Rs 1,600,000; 30% to Rs 3,200,000; 40% to Rs 5,600,000; and 45% above Rs 5,600,000. A 10% surcharge on the tax applies when income is above Rs 10 million.

Who counts as a salaried taxpayer?

You use the salaried slabs when more than 75% of your taxable income comes from salary. Otherwise the non-salaried (business) slabs apply to your total income.

When do the new slabs apply?

The FY 2026-27 slabs apply to income earned from 1 July 2026 to 30 June 2027. This is called Tax Year 2027, and the return for it is due by 30 September 2027 unless FBR extends the date.

Source: Finance Act 2026 and FBR's income tax rate card. Always check the latest FBR notification before filing.