Tool
Salary Tax Calculator
Put in what you earn and see what actually reaches your account, on the slabs that took effect on 1 July 2026. Rates came down this year, so if you last checked before the budget your figure is out of date.
Tax per month
Rs 6,000
Take home per month
Rs 144,000
Effective rate
4.0%
Annual salary Rs 1,800,000
Annual tax Rs 72,000
Annual take home Rs 1,728,000
Top slab reached 11%
Your effective rate is what you actually pay across your whole salary, and it is always lower than your slab rate. Someone in the 25% band is not paying a quarter of their salary: the higher rate only touches the part of the income that sits above the threshold.
Salary tax slabs for 2026-27
Every band, with the tax due at the bottom of it and the rate that applies to income above that point.
| Annual income | Fixed tax | Rate on the excess |
|---|---|---|
| Up to Rs 600,000 | Nil | Nil |
| Rs 600,001 to Rs 1,200,000 | Nil | 1% |
| Rs 1,200,001 to Rs 2,200,000 | Rs 6,000 | 11% |
| Rs 2,200,001 to Rs 3,200,000 | Rs 116,000 | 20% |
| Rs 3,200,001 to Rs 4,100,000 | Rs 316,000 | 25% |
| Rs 4,100,001 to Rs 5,600,000 | Rs 541,000 | 29% |
| Rs 5,600,001 to Rs 7,000,000 | Rs 976,000 | 32% |
| Above Rs 7,000,000 | Rs 1,424,000 | 35% |
The mistake almost everyone makes
People see their slab rate and assume it applies to their whole salary. It does not. Each rate only bites on the income above that slab's floor, which is why a raise can never leave you worse off. Crossing into the next band costs you a higher rate on the extra rupees only, never on the ones you were already earning.
That gap is wide. On Rs 3 million a year you are technically a 20 percent taxpayer, but the effective rate is a little over 9 percent. Watch the effective rate above rather than the band you land in.
What is not in this figure
This is income tax on salary and nothing else. It does not account for exempt allowances, tax credits for pension contributions or donations, other sources of income, or the reduced rates available to teachers and researchers. If any of those apply to you, the number here will be higher than what you finally owe.
Frequently asked questions
How much salary is tax free in Pakistan?
The first Rs 600,000 a year, which works out at Rs 50,000 a month. Earn below that and you owe nothing, though you may still need to file a return.
Does the 9 percent surcharge still apply?
Not for salaried people. The Finance Act 2026 withdrew the section 4AB surcharge for salaried individuals, so nothing is added on top of the slab figure. It still applies to business income.
Why is my tax lower than my slab rate suggests?
Because the rate only applies to the part of your income above the threshold, not to all of it. Someone on Rs 3 million a year sits in the 20 percent band but pays about 9 percent of their salary overall.
Is this calculated on gross or taxable salary?
On taxable salary. If you have allowances that are exempt, or you claim deductions, subtract those first and enter what is left.
Does my employer deduct this automatically?
Yes, salaried tax is withheld at source and paid over monthly, which is why the monthly figure here is the useful one. Check it against your payslip.
What changed in the 2026-27 slabs?
Rates came down across the middle and upper bands, the old 35 percent top band was split into 29, 32 and 35 percent, and the surcharge went. Most salaried people pay less than they did last year.
Next steps
Slabs are those set by the Finance Act 2026 for tax year 2026-27, effective 1 July 2026. Pakistan Era is not a tax adviser. Check anything that matters with FBR or a practitioner.