Tax year 2027 · FBR slabs
Calculate income tax on your salary for tax year 2027 (1 July 2026 – 30 June 2027). See your monthly tax, take-home pay and FBR tax slab instantly.
Updated for Finance Act 2026 Last reviewed 7 November 2026 Free, no sign-up
01 Your breakdown
Example: on a monthly salary of Rs 150,000, you pay Rs 6,000 a month in income tax. Your annual taxable salary is Rs 1,800,000, which falls in the 11% slab.
Each rate applies only to the part of your salary inside that slab. A raise never reduces your take-home pay, because only the extra amount is taxed at the higher rate.
Change your salary| Part of your annual salary | Rate | Tax |
|---|---|---|
| First Rs 600,000 | 0% | Rs 0 |
| Next Rs 600,000 (up to Rs 1,200,000) | 1% | Rs 6,000 |
| Remaining Rs 600,000 (up to Rs 1,800,000) | 11% | Rs 66,000 |
| Total yearly tax | Rs 72,000 | |
| Monthly tax (÷ 12) | Rs 6,000 |
02 Tax slabs
Salaried individuals pay no income tax on annual taxable salary up to Rs 600,000 (Rs 50,000 a month). Above that, tax rises in eight slabs from 1% to 35%, as set by the Finance Act 2026.
Annual salary in lakh (L). Enter your salary to see your slab in gold.
| Annual taxable salary | Tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 – 1,200,000 | 1% of the amount above Rs 600,000 |
| Rs 1,200,001 – 2,200,000 | Rs 6,000 + 11% of the amount above Rs 1,200,000 |
| Rs 2,200,001 – 3,200,000 | Rs 116,000 + 20% of the amount above Rs 2,200,000 |
| Rs 3,200,001 – 4,100,000 | Rs 316,000 + 25% of the amount above Rs 3,200,000 |
| Rs 4,100,001 – 5,600,000 | Rs 541,000 + 29% of the amount above Rs 4,100,000 |
| Rs 5,600,001 – 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 |
There is no surcharge on salaried income in 2026-27. These slabs come from the First Schedule of the Income Tax Ordinance 2001, as amended by the Finance Act 2026. Your slab is highlighted once you enter your salary.
The first three slabs are the same as last year. Rates are lower for annual salaries above Rs 2,200,000, and the 9% surcharge is gone.
Up to Rs 2,200,000
No change
Rs 2,200,001 – 3,200,000
23%20%
Rs 3,200,001 – 4,100,000
30%25%
Rs 4,100,001 – 5,600,000
35%29%
Rs 5,600,001 – 7,000,000
35%32%
Surcharge on tax (income above Rs 10,000,000)
9%None
03 Quick answers
Monthly salaries up to Rs 50,000 are tax-free. The table shows tax and take-home pay for common salaries in 2026-27.
For any other amount, use the salary tax calculator above.
| Monthly salary | Monthly tax | Take-home pay | Effective rate | Saving vs 2025-26 |
|---|---|---|---|---|
| Rs 50,000 | Rs 0 | Rs 50,000 | 0% | — |
| Rs 75,000 | Rs 250 | Rs 74,750 | 0.3% | — |
| Rs 100,0001 lakh | Rs 500 | Rs 99,500 | 0.5% | — |
| Rs 150,0001.5 lakh | Rs 6,000 | Rs 144,000 | 4% | — |
| Rs 200,0002 lakh | Rs 13,000 | Rs 187,000 | 6.5% | Rs 500 |
| Rs 300,0003 lakh | Rs 34,667 | Rs 265,333 | 11.6% | Rs 4,167 |
| Rs 500,0005 lakh | Rs 92,000 | Rs 408,000 | 18.4% | Rs 14,750 |
| Rs 1,000,00010 lakh | Rs 264,500 | Rs 735,500 | 26.5% | Rs 42,608 |
04 Method
You can work out your income tax in three steps: find your annual taxable salary, find its slab, then apply that slab's fixed amount and rate.
Multiply your monthly taxable salary by 12. Include basic pay, taxable allowances and bonuses. Leave out exempt allowances, such as the exempt part of your medical allowance.
Find the row in the 2026-27 slab table where your annual salary falls. For example, Rs 1,800,000 falls between Rs 1,200,001 and Rs 2,200,000.
Subtract the slab's starting point from your salary, apply the slab rate to the difference, and add the fixed amount. Divide by 12 to get your monthly tax.
Example
A monthly salary of Rs 150,000 is Rs 1,800,000 a year, in the 11% slab.
Try it with your salaryTax on Rs 150,000 a month
05 What's taxed
Taxable salary is your total pay from employment, minus allowances the law exempts. It is the figure the slabs apply to, not your basic salary alone.
These slabs apply to salaried individuals: people whose salary is more than 75% of their total taxable income. If most of your income comes from business, freelancing or rent, different rates apply and this calculator does not cover them.
Basic salary, house rent allowance, conveyance and utility allowances, bonuses, commission, overtime and leave encashment are all taxable. Benefits from your employer, such as a company car or free accommodation, are also added to your salary at values set by the law.
Some allowances are not taxed. The most common is medical allowance, which is exempt up to 10% of your basic salary when your employer doesn't also provide free medical treatment or reimburse medical bills. Check your salary slip: exempt allowances lower your taxable salary, so your actual tax can be less than the calculator shows. See all tax-free allowances, deductions and credits.
You can lower the tax you pay with:
You claim these in your income tax return on FBR's IRIS portal. If your employer deducted more tax than you owe, the return is also how you get it back.
06 Archive
Each tax year has its own slabs. Use the right year to check an old payslip, file a late return or compare years.
07 Tools
Salary tools
Mobile phones
08 Answers
Quick answers about salary tax in 2026-27. For your exact figure, use the calculator.
Calculate your taxAnnual taxable salary up to Rs 600,000 is tax-free in 2026-27. That is Rs 50,000 a month. If you earn more, you pay tax only on the part above Rs 600,000.
On a monthly salary of Rs 100,000, the income tax is Rs 500 a month (Rs 6,000 a year) in 2026-27. Your take-home pay is Rs 99,500. This assumes your whole salary is taxable.
The tax year runs from 1 July to 30 June and is named after the year it ends. Tax year 2027 runs from 1 July 2026 to 30 June 2027, and people often call it 2026-27.
No. There is no surcharge on salaried income in 2026-27. In 2025-26, salaried individuals with taxable income above Rs 10,000,000 paid a 9% surcharge on their tax.
No. Salary slabs are the same for filers and non-filers. But non-filers pay higher rates on many other things, such as property, vehicles, cash withdrawals and PTA tax on the CNIC route. You can check your filer status on FBR's Active Taxpayer List.
Under Section 149 of the Income Tax Ordinance, your employer deducts tax from each salary payment at your average tax rate for the year, based on your estimated annual salary. If your pay changes during the year, for example with a bonus or raise, the deduction is adjusted. Your employer also adjusts it for tax credits you claim, such as donations and pension fund contributions.
Your employer may include things this calculator doesn't: exempt allowances, a bonus or arrears, tax credits you have claimed, or adjustments for months already paid. If you joined mid-year, your employer also spreads the tax over fewer months.
New rates apply from 1 July each year, when the Finance Act takes effect. Most employers apply them from the July salary. If the budget is passed late, the difference is adjusted in the following months.
Last reviewed: 7 November 2026. How we calculate
Results are estimates, not tax advice. For your exact tax, check your salary certificate or ask a tax professional.