Income tax slabs in Pakistan for FY 2026-27 and FY 2025-26
Annual income up to Rs 6,00,000 is tax-free in both years. Above that, salaried income is taxed in progressive bands up to a top rate of 35%. Both years are below because both are still in use: FY 2025-26 for the return you file on last year's income, FY 2026-27 for what your employer deducts now.
Rates verified against the Finance Act 2026 (Act XLIII of 2026, gazetted 26 June 2026) on 25 September 2026. How we calculate
Income tax slabs for FY 2026-27 (tax year 2027)
Open calculator →Enacted by the Finance Act 2026 (gazetted 26 June 2026) and in force from 1 July 2026. For salaried individuals the rate changed in 4 bands, the former top band is split so 35% now starts above Rs 70,00,000, and the surcharge on salaried income above Rs 1,00,00,000 is removed. Non-salaried and AOP rates are unchanged from FY 2025-26, with the 10% surcharge above the same threshold.
Income tax slabs for FY 2025-26 (tax year 2026)
Open calculator →These rates cover income earned from 1 July 2025 to 30 June 2026, which is the income on your tax year 2026 return. Salaried income runs from 0% up to 35% above Rs 41,00,000, with a 9% surcharge on the tax once annual taxable income passes Rs 1,00,00,000. Filing that return? See the filing deadline guide.
Worked examples: salary tax in FY 2026-27 vs FY 2025-26
Gross salary with no deductions. Each rate applies only to the part of annual income inside its band. For Rs 2,00,000 a month (Rs 24,00,000 a year) under FY 2026-27: the first Rs 6,00,000 is tax-free, and the fixed amount plus 20% on the slice above the band floor gives Rs 1,56,000 for the year.
| Monthly salary | Annual income | Tax FY 2025-26 | Tax FY 2026-27 | Monthly tax FY 2026-27 | Difference / year |
|---|---|---|---|---|---|
| Rs 50,000 | Rs 6,00,000 | Rs 0 | Rs 0 | Rs 0 | no change |
| Rs 1,00,000 | Rs 12,00,000 | Rs 6,000 | Rs 6,000 | Rs 500 | no change |
| Rs 2,00,000 | Rs 24,00,000 | Rs 1,62,000 | Rs 1,56,000 | Rs 13,000 | −Rs 6,000 |
| Rs 3,50,000 | Rs 42,00,000 | Rs 6,51,000 | Rs 5,70,000 | Rs 47,500 | −Rs 81,000 |
Any other salary: the salary tax table covers every monthly salary from Rs 50,000 to Rs 10 lakh, and the calculator handles business, freelance and prior-year income.
Income tax slabs for FY 2024-25
Prior fiscal yearSalaried slabs for FY 2020-21 to FY 2023-24
Income tax slabs: common questions
What are the income tax slabs in Pakistan for FY 2026-27?
For FY 2026-27, salaried income tax is 0% up to Rs 6,00,000; 1% on Rs 6,00,001–Rs 12,00,000; Rs 6,000 + 11% on Rs 12,00,001–Rs 22,00,000; Rs 1,16,000 + 20% on Rs 22,00,001–Rs 32,00,000; Rs 3,16,000 + 25% on Rs 32,00,001–Rs 41,00,000; Rs 5,41,000 + 29% on Rs 41,00,001–Rs 56,00,000; Rs 9,76,000 + 32% on Rs 56,00,001–Rs 70,00,000; and Rs 14,24,000 + 35% above Rs 70,00,000, with no surcharge on salaried income.
What is the tax-free income limit in Pakistan for FY 2026-27?
Annual taxable income up to Rs 6,00,000 (Rs 6 lakh) is taxed at 0% for salaried and non-salaried individuals in both FY 2026-27 and FY 2025-26. That is Rs 50,000 a month.
How much income tax is due on a Rs 1,00,000 monthly salary?
A salary of Rs 1,00,000 a month is Rs 12,00,000 a year. Under the FY 2026-27 salaried slabs the annual tax is Rs 6,000 (Rs 500 a month); under FY 2025-26 it was Rs 6,000.
How much income tax is due on a Rs 2,00,000 monthly salary?
Rs 24,00,000 a year falls in the 20% band. FY 2026-27 tax is Rs 1,56,000 a year (Rs 13,000 a month), an effective rate of 6.5%. FY 2025-26 tax on the same salary was Rs 1,62,000.
What changed in the salaried tax slabs from FY 2025-26 to FY 2026-27?
The rate changed in these annual income bands: Rs 22,00,000 to Rs 32,00,000: 23% to 20%; Rs 32,00,000 to Rs 41,00,000: 30% to 25%; Rs 41,00,000 to Rs 56,00,000: 35% to 29%; Rs 56,00,000 to Rs 70,00,000: 35% to 32%. The FY 2026-27 table has 8 bands against 6 in FY 2025-26, and the top rate of 35% now starts above Rs 70,00,000 instead of Rs 41,00,000.
Which slabs apply to my tax return this year?
A return covers the tax year that ended on 30 June. Income earned from July 2025 to June 2026 (tax year 2026) is taxed under the FY 2025-26 slabs. Income from July 2026 onwards is taxed under FY 2026-27, which is what your employer now withholds against each month.
- Tax is progressive: each rate applies only to income above the band floor, so a raise never lowers take-home pay.
- Non-salaried and business income has its own, higher slab table.
- IT and software exporters under the export regime are taxed on foreign-currency receipts outside these tables; see the freelancer and IT export guide.