2026-27 at a glance
| Item | 2026-27 (tax year 2027) | 2025-26 |
|---|---|---|
| Tax-free salary | Rs 600,000 a year (Rs 50,000 a month) | Rs 600,000 |
| Salaried slabs | 8 slabs, 1% to 35% | 6 slabs, 1% to 35% |
| 35% rate starts at | Rs 7,000,000 | Rs 4,100,000 |
| Surcharge on salaried income | none | 9% above Rs 10 million |
The Finance Act 2026 cut the rates in the middle bands (20% instead of 23% from Rs 2.2 million, for example), pushed the top rate from Rs 4.1 million to Rs 7 million and abolished the surcharge for salaried individuals. It applies from 1 July 2026 to 30 June 2027.
Choose a calculator
- Employees: the salary tax calculator shows the monthly tax your employer deducts, your take-home pay and how much you save compared with 2025-26.
- Salary plus business or other income: the income tax calculator applies the salaried or non-salaried rates according to the 75% rule.
How these calculators are built
The slabs come from the FBR’s withholding tax rate card for the Finance Act 2026 and the Income Tax Ordinance as amended to 30 June 2026, including the footnoted 2025-26 table used for the comparison. Tests check every slab boundary and that each fixed amount equals the previous one plus the rate on the band below.