Salary Tax Calculator
Enter your monthly or annual salary to see exactly what your employer withholds under section 149, what you take home, and how the figure is built up slab by slab. Updated for the Finance Act 2026.
Rates verified 2026-10-10 against the Finance Act 2026 for Tax Year 2027 (1 July 2026 - 30 June 2027).
Implements section 149 of the Income Tax Ordinance, 2001.
Rs 1.5 lakh
Before any tax or deductions.
⚡ Calculations update automatically as you type
Monthly tax withheld
Rs 6,000
Monthly take-home
Rs 1,44,000
Annual income tax
Rs 72,000
Annual take-home
Rs 17,28,000
- Effective rate
- 4%
- Marginal rate
- 11%
- Gross salary
- Rs 18,00,000
Tax as a share of your gross salary
Tax on your next rupee earned
Annual, before deductions
Your tax, slab by slab
Pakistan taxes income progressively, so only the portion inside each band is charged at that band’s rate.
| Income slab | Rate | Your income here | Tax |
|---|---|---|---|
| 0 – 6,00,000 | 0% | Rs 6,00,000 | Rs 0 |
| 6,00,000 – 12,00,000 | 1% | Rs 6,00,000 | Rs 6,000 |
| 12,00,000 – 22,00,000 | 11% | Rs 6,00,000 | Rs 66,000 |
| Total income tax | Rs 72,000 | ||
Where your salary goes
Budget Comparison: TY 2027 vs TY 2026
Comparing Finance Act 2026 against the prior tax year on the same salary.
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Bilingual Tax Glossary(ٹیکس کی بنیادی اصطلاحات)
Quick guide to standard Pakistani tax terms in Urdu and English.
This is an estimate for general information, not professional tax advice. It does not account for every allowance, exemption or provincial levy that may apply to you. Confirm your position with the FBR or a qualified tax practitioner before acting on it.
Frequently asked questions
- How much salary is tax free in Pakistan in Tax Year 2027?
- Annual salary up to Rs 6,00,000 is completely exempt from income tax, which works out to Rs 50,000 per month. Tax only applies to income above that threshold, and even then only at 1% for the first slab.
- When does Pakistan's tax year start and end?
- Pakistan's tax year runs from 1 July to 30 June and is named for the year it ends in. So Tax Year 2027 covers 1 July 2026 - 30 June 2027, and its rates were set by the Finance Act 2026.
- What are the salary tax slabs for Tax Year 2027?
- There are 8 slabs. Income up to Rs 6,00,000 is exempt, then rates rise progressively from 1% to a top rate of 35% on income above Rs 70,00,000. Importantly, each rate applies only to the portion of your income inside that slab, not to your whole salary.
- Is there still a surcharge on high salaries?
- No. The 9% surcharge that applied to salaried individuals earning over Rs 1 crore was abolished by the Finance Act 2026. Note that non-salaried individuals and AOPs do still pay a 10% surcharge above that threshold.
- Does my provident fund contribution reduce my tax?
- No. Contributions to a recognised provident fund do not reduce your taxable salary under the Income Tax Ordinance, so your tax is unchanged. They do reduce your take-home pay, which is why this calculator shows them separately in your net pay rather than deducting them from taxable income.
- Do filers and non-filers pay different salary tax?
- No — the salary tax slabs under section 149 are identical either way, and your employer withholds the same amount. Being a non-filer costs you elsewhere: on property transactions, cash withdrawals, vehicle registration and rent received, where the rates are doubled or worse.
- How much tax will I pay on Rs 1,50,000 a month?
- On Rs 1,50,000 a month — Rs 18,00,000 a year — your annual income tax is Rs 72,000, so your employer withholds Rs 6,000 each month and you take home Rs 1,44,000. That is an effective rate of 4%.
How salary tax is calculated in Pakistan
Pakistan taxes salary progressively. That means the rate attached to a slab applies only to the part of your income that falls inside that slab — never to your whole salary. This is the single most common misunderstanding about Pakistani income tax, and it matters: crossing into a higher slab does not suddenly re-tax everything you earned below it.
Only the slice of income inside each band is taxed at that band’s rate.
The arithmetic for each slab is published in the First Schedule to the Income Tax Ordinance, 2001 in the form “a fixed amount plus a percentage of the excess”. The fixed amount is simply the total tax already accumulated on the slabs beneath you.
A worked example
Take a salary of Rs 1,50,000 a month, or Rs 18,00,000 a year. That falls in the Rs 12,00,000–Rs 22,00,000 slab, charged at Rs 6,000 plus 11% of the excess:
- Excess over Rs 12,00,000 = Rs 6,00,000
- 11% of that = Rs 66,000
- Plus the fixed Rs 6,000 = Rs 72,000 for the year
- Divided by 12 = Rs 6,000 withheld each month
Note the effective rate: 4%, far below the 11% marginal rate, because most of this salary is taxed at 0% and 1% in the slabs below.
A detail most calculators get wrong
The slabs read “exceeding X but not exceeding Y”, so an income sitting exactly on a boundary belongs to the lower slab. A salary of precisely Rs 6,00,000 is taxed at 0%, not 1%. We test every boundary explicitly for this.
What this calculator does not include
This is federal income tax on salary only. It does not cover provincial professional tax, EOBI contributions, social security, or any employer-specific deduction. Nor does it cover the withholding taxes you may face as a non-filer on property, banking and vehicle transactions — for those, use the filer vs non-filer calculator.