Pakistan uses a progressive slab system for income tax. Your annual income is split into bands, and each band is taxed at its own rate, so earning more never reduces your take-home pay. For salaried individuals in FY 2026-27, the first Rs 6,00,000 a year is tax-free. Income above that is taxed in steps of 1%, 11%, 20%, 25%, 29%, 32%, and a top rate of 35% on annual income above Rs 70,00,000. There is no surcharge on salaried income this year.
This is why your effective tax rate (the share of your whole salary that actually goes to tax) is always lower than your marginal rate (the rate on your next rupee earned). Someone on Rs 2,00,000 a month, for example, has a 20% marginal rate but an effective rate of 6.5%, because only the top slice of their income reaches the 20% band.
The calculator above applies the FBR slabs for salaried, business and IT-export income across 7 tax years (FY 2020-21 to FY 2026-27). For both current tables side by side see the income tax slabs 2026-27 and 2025-26, look up any monthly salary in the salary tax guide, or work out what is left to pay mid-year with the remaining tax calculator. Filing last year's return? The income tax return deadline guide covers due dates, late-filing consequences and the IRIS steps.