Pakistan Salary Tax Calculator 2026-27

The Pakistan Salary Tax Calculator shows exactly how much income tax is deducted from your pay under the salaried-class slabs in Division I, Part I of the First Schedule to the Income Tax Ordinance, 2001. Enter your monthly or annual taxable salary, choose the tax year, and you instantly get your annual tax, monthly deduction, monthly take-home pay, effective tax rate and the slab your income falls into. A built-in slab table highlights your bracket so you can see how the figure is built rather than trusting a black box.

For tax year 2027 (1 July 2026 to 30 June 2027), the Finance Act 2026 reshaped the upper brackets for salaried people. The tax-free threshold stays at Rs 600,000 a year and the 1% and 11% bands are unchanged, but the band from Rs 2.2 million to 3.2 million drops from 23% to 20%, Rs 3.2 to 4.1 million drops from 30% to 25%, and the old flat 35% above Rs 4.1 million is split into 29% (up to Rs 5.6 million), 32% (up to Rs 7 million) and 35% only above Rs 7 million. The 9% surcharge under section 4AB, which applied to salaried individuals earning over Rs 10 million in 2025-26, has also been withdrawn for salary income. You can switch to 2025-26 to compare the old and new deductions side by side.

Worked example: suppose your gross taxable salary is Rs 200,000 a month, or Rs 2,400,000 a year. Under the 2026-27 slabs you fall in the Rs 2.2–3.2 million band, so tax is Rs 116,000 plus 20% of the Rs 200,000 above Rs 2.2 million, which is Rs 156,000 a year or Rs 13,000 a month. Your take-home is Rs 187,000 and your effective rate is 6.5%. Under the 2025-26 slabs the same salary paid Rs 162,000 (Rs 116,000 + 23% of Rs 200,000), so the new budget saves you Rs 6,000 a year. At Rs 1 lakh a month (Rs 1.2 million a year), tax is just Rs 6,000 a year or Rs 500 a month in both years.

The calculator also has a Freelancer / IT export mode. Under section 154A, export proceeds from computer software, IT and IT-enabled services received through proper banking channels are taxed at 0.25% as a final tax if you are registered with the Pakistan Software Export Board (PSEB), and 1% in other cases, for tax years up to 2029. This is charged on the gross foreign remittance, not on profit, so it is usually far lower than salary tax on the same amount. It is a useful way for freelancers on Upwork, Fiverr or direct contracts to see why PSEB registration and routing income through a bank matter.

Remember that the slabs apply to taxable salary. Most allowances, bonuses and perquisites are taxable, while some items such as medical allowance up to 10% of basic salary (where no free medical treatment or reimbursement is provided) may be exempt. Employers withhold tax monthly under section 149 by spreading your estimated annual liability across the year, so actual deductions can differ if your pay changes mid-year. Figures here are estimates; always verify against the FBR rate card, the Income Tax Ordinance 2001 as amended, or a qualified tax adviser before filing your return on IRIS.