Income Tax Calculator Pakistan 2026-27
Work out your income tax for FY 2026-27 (Tax Year 2027) or FY 2025-26 (Tax Year 2026), for salaried and non-salaried income, using the slabs published in the law.
| Annual taxable income | Tax |
|---|---|
| Up to Rs. 600,000 | 0% |
| Rs. 600,001 to Rs. 1,200,000 | 1% of the amount above Rs. 600,000 |
| Rs. 1,200,001 to Rs. 2,200,000 | Rs. 6,000 + 11% of the amount above Rs. 1,200,000 |
| Rs. 2,200,001 to Rs. 3,200,000 | Rs. 116,000 + 20% of the amount above Rs. 2,200,000 |
| Rs. 3,200,001 to Rs. 4,100,000 | Rs. 316,000 + 25% of the amount above Rs. 3,200,000 |
| Rs. 4,100,001 to Rs. 5,600,000 | Rs. 541,000 + 29% of the amount above Rs. 4,100,000 |
| Rs. 5,600,001 to 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 |
No surcharge for salaried individuals: the Finance Act, 2026 replaced the 9% surcharge in the section 4AB proviso with "no surcharge shall be payable".
Legal reference: First Schedule, Part I, Division I, clause (2), as substituted by the Finance Act, 2026.
FY 2026-27 (Tax Year 2027), effective 1 Jul 2026 to 30 Jun 2027. Slabs last verified against the source text on 17 Oct 2026.
- Source: Finance Act, 2026 (Gazette of Pakistan, Extraordinary, 26 June 2026): section 4AB proviso and First Schedule, Part I, Division I, clause (2) Table
- Source: Income Tax Ordinance, 2001, FBR Income Tax Manual Part I (amended up to 30 June 2026): section 4AB and First Schedule, Part I, Division I
This calculator estimates annual income tax under the slabs above. It does not cover exempt allowances, final or separate-block taxes (such as tax on dividends, profit on debt or capital gains), withholding adjustments, or minimum taxes. Check your return on FBR IRIS or with a tax adviser.
Formula
Worked Example
A salaried employee earning Rs 200,000 a month has taxable income of Rs. 2,400,000 a year. In FY 2026-27 (Tax Year 2027) that falls in the slab "Rs. 116,000 + 20% of the amount above Rs. 2,200,000", so tax is Rs. 156,000 a year (Rs. 13,000 a month), an effective rate of 6.5%. Under the FY 2025-26 (Tax Year 2026) slabs the same salary paid Rs. 162,000 a year.
How to Interpret the Result
Your effective tax rate shows tax as a share of your whole income. It is always lower than the rate of your top slab, because the lower slabs are taxed at lower rates. Monthly tax is the annual figure divided by 12. Employers withhold tax across the year, so the amount deducted in a given month can differ.
Common Mistakes
1) Confusing the slab rate with the effective rate. 2) Using last year's slabs: rates changed on 1 July 2026. 3) Treating tax credits as deductions: donation and pension credits are worth your average tax rate times the eligible amount, not the full amount. 4) Using the salaried slabs when salary is 75% or less of taxable income. 5) Not filing a return: filing affects withholding rates on many transactions.
Learn the Method
Free lessons that explain the ideas behind this calculator:
Frequently Asked Questions
Income Tax in Pakistan, FY 2026-27 (Tax Year 2027)
Pakistan taxes individuals on a progressive slab system set out in Division I of Part I of the First Schedule to the Income Tax Ordinance, 2001. The Finance Act, 2026, gazetted on 26 June 2026, replaced the salaried table for FY 2026-27 (Tax Year 2027) (1 July 2026 to 30 June 2027). The first slab is unchanged at Rs. 600,000, rates above Rs 2.2 million were cut, two new slabs were added up to Rs 7 million, and the surcharge on salaried income was removed.
Salaried vs non-salaried
The salaried table applies when salary is more than 75% of your taxable income. Employers deduct tax from salary at source under section 149. Everyone else, including business owners, professionals and freelancers, uses the non-salaried table in clause (1), which has higher rates and keeps a 10% surcharge above Rs 10 million.
Freelancers and IT exporters
Income from exporting services is usually not taxed on the slabs. Under section 154A the bank deducts a flat tax when it converts the foreign proceeds: 0.25% or 1% depending on the service and PSEB registration. It is a final tax if the conditions are met (return and required statements filed). Use the Take Home Pay Calculator in freelancer mode to compare it with the slab tax.
Allowances and credits
- Zakat paid under the Zakat and Ushr Ordinance is a deductible allowance (section 60): it reduces taxable income.
- Donations to eligible organisations give a tax credit (section 61) at your average tax rate, on up to 30% of taxable income.
- Approved pension fund contributions under the Voluntary Pension System give a tax credit (section 63) on up to 20% of taxable income.
Why filing your return matters
Even below the taxable threshold, filing an annual return on FBR IRIS puts you on the Active Taxpayers List, which affects the withholding tax rates you pay on banking, property and vehicle transactions.
Capital Gains Tax on PSX Shares
Gains on listed shares are taxed separately from your salary or business income, under section 37A at the rates in Division VII of Part I of the First Schedule. The rate depends on when the shares were bought, how long they were held, and whether you are on the Active Taxpayers List. These rules have changed several times since 2022.
SeekhKar has not yet built a verified capital gains calculator, so this page does not quote CGT rates. Check Division VII in the current Income Tax Ordinance or your broker's CGT statement from NCCPL.
Related: Use the Take Home Pay Calculator to see your monthly pay after tax and provident fund, or the Sales Tax Calculator for GST on goods and services.