Income Tax Rates & Slabs in Pakistan
Salary income tax rates for every tax year from 2021-22 to 2026-27, with each year's slabs, top rate and surcharge.
Choose a tax year
01 Compare years
Salary tax rates in Pakistan by year
Every year since 2021-22 the first Rs 600,000 of salary has been tax-free. What changes from year to year is the number of slabs, the rates and where the 35% top rate starts.
| Tax year | Slabs | First taxable rate | Top rate | Salaried surcharge | Set by |
|---|---|---|---|---|---|
| 2026-27 (current) | 8 | 1% | 35% above Rs 7,000,000 | None | Finance Act 2026 |
| 2025-26 | 6 | 1% | 35% above Rs 4,100,000 | 9% above Rs 10,000,000 | Finance Act 2025 |
| 2024-25 | 6 | 5% | 35% above Rs 4,100,000 | 10% above Rs 10,000,000 | Finance Act 2024 |
| 2023-24 | 6 | 2.5% | 35% above Rs 6,000,000 | None | Finance Act 2023 |
| 2022-23 | 7 | 2.5% | 35% above Rs 12,000,000 | None | Finance Act 2022 |
| 2021-22 | 12 | 5% | 35% above Rs 75,000,000 | None | Finance Act 2019 |
Tax-free limit in every year shown: Rs 600,000 a year (Rs 50,000 a month). Select a year for its full slab table and calculator.
02 Current year
Current income tax rates in Pakistan (2026-27)
The Finance Act 2026 set eight slabs for tax year 2027 (1 July 2026 – 30 June 2027).
- The first three slabs (0%, 1% and 11%) are unchanged from 2025-26.
- The 23% and 30% rates were cut to 20% and 25%.
- New 29% and 32% slabs mean the 35% top rate now starts at Rs 7,000,000 instead of Rs 4,100,000.
- The 9% surcharge on salaried income was removed.
| 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 |
03 How rates work
Slab rate vs effective tax rate
Your slab rate is the rate on the top part of your salary. Your effective rate is the tax you pay as a share of your whole salary, and it is always lower.
Example salary
Rs 150,000
a month in 2026-27
Slab rate (marginal)
11%
on the part above Rs 1,200,000 a year
Effective rate
4%
Rs 6,000 tax on Rs 150,000
Because each rate applies only to the part of your salary inside its slab, a raise never reduces your take-home pay. See how the calculation works.
04 Over time
Tax on the same salary across years
Monthly income tax on three common salaries in each tax year. Rates rose sharply in 2024-25 and have fallen since.
| Monthly salary | 2026-27 | 2025-26 | 2024-25 | 2023-24 | 2022-23 | 2021-22 |
|---|---|---|---|---|---|---|
| Rs 100,000 | Rs 500 | Rs 500 | Rs 2,500 | Rs 1,250 | Rs 1,250 | Rs 2,500 |
| Rs 200,000 | Rs 13,000 | Rs 13,500 | Rs 19,167 | Rs 13,750 | Rs 13,750 | Rs 15,000 |
| Rs 500,000 | Rs 92,000 | Rs 106,750 | Rs 113,750 | Rs 91,250 | Rs 83,750 | Rs 74,583 |
05 Answers
Questions about tax rates
Quick answers about income tax rates for salaried people in Pakistan.
Calculate your taxWhat is the current income tax rate in Pakistan?
For salaried individuals in 2026-27, income tax rates run from 0% on annual taxable salary up to Rs 600,000 to 35% on income above Rs 7,000,000, across eight slabs. There is no surcharge on salaried income in 2026-27.
What percentage of salary is income tax in Pakistan?
It depends on your salary. On Rs 100,000 a month the tax is 0.5% of salary in 2026-27, on Rs 200,000 it is 6.5%, and on Rs 500,000 it is 18.4%. The slab rate only applies to the part of your salary inside that slab, so the overall percentage is always lower.
What is the highest income tax rate in Pakistan?
The highest rate for salaried individuals is 35%. In 2026-27 it applies to annual taxable income above Rs 7,000,000. In 2024-25 and 2025-26 it started at Rs 4,100,000.
When do income tax rates change in Pakistan?
Rates are set each year by the Finance Act passed with the federal budget, usually in June. New rates apply from 1 July, the start of the tax year.
Do non-filers pay a higher income tax rate on salary?
No. Salary slabs are the same for filers and non-filers. Non-filers pay higher withholding rates on other transactions, such as property, vehicles and cash withdrawals. You can check your filer status on FBR's Active Taxpayer List.
Sources and last update
- Income Tax Ordinance 2001, First Schedule, Part I, Division I (and the tables it replaced each year)
- Finance Acts 2022 to 2026; FBR Withholding Income Tax Rate Cards for tax years 2026 and 2027
- Federal Board of Revenue (FBR)
Last reviewed: 7 November 2026. How we calculate
Results are estimates, not tax advice.