How the 2026-27 salary tax slabs work
Pakistan taxes salary on the year, not the month. The tax year runs from 1 July 2026 to 30 June 2027. Your employer estimates your annual salary, works out the tax on it, and deducts one twelfth each month. The Finance Act 2026 set these slabs for salaried individuals:
| Annual taxable salary | Tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 to Rs 1,200,000 | 1% of the amount over Rs 600,000 |
| Rs 1,200,001 to Rs 2,200,000 | Rs 6,000 + 11% of the amount over Rs 1,200,000 |
| Rs 2,200,001 to Rs 3,200,000 | Rs 116,000 + 20% of the amount over Rs 2,200,000 |
| Rs 3,200,001 to Rs 4,100,000 | Rs 316,000 + 25% of the amount over Rs 3,200,000 |
| Rs 4,100,001 to Rs 5,600,000 | Rs 541,000 + 29% of the amount over Rs 4,100,000 |
| Rs 5,600,001 to Rs 7,000,000 | Rs 976,000 + 32% of the amount over Rs 5,600,000 |
| Above Rs 7,000,000 | Rs 1,424,000 + 35% of the amount over Rs 7,000,000 |
Each slab taxes only the part of your salary above its starting point, plus a fixed amount for the slabs below it. Moving into a higher slab never reduces your take-home pay. The Finance Act 2026 also withdrew the 9% surcharge that salaried people used to pay on income above Rs 10 million a year.
Worked example: Rs 150,000 a month
A monthly salary of Rs 150,000 is Rs 1,800,000 a year. That falls in the slab from Rs 1,200,001, so the tax is Rs 6,000 + 11% of the amount over Rs 1,200,000: Rs 72,000 a year, or Rs 6,000 a month. Take-home pay before any EOBI or provident fund deduction is Rs 144,000 a month, an effective tax rate of 4.0%.
EOBI is not 1% of your salary
The Employees’ Old-Age Benefits Institution collects 6% a month for each insured employee: 5% from the employer and 1% from the employee, both calculated on the minimum wage, not on actual salary. Two people on very different salaries pay the same EOBI. The calculator asks for the minimum wage your employer uses, because the base is revised from time to time and should be checked with EOBI before you rely on a figure.
Provident fund
If your employer runs a provident fund, a fixed percentage of your basic salary is deducted and the employer usually adds a matching amount. The rate depends on the scheme’s rules, so enter your own basic salary and rate. The calculator deducts your share from take-home pay; it does not change the tax figure.
What this salary calculator for Pakistan assumes
- Salary is your only income, and the same amount is paid for all 12 months.
- No tax-exempt allowances, tax credits or adjustable tax paid elsewhere.
- No bonus, arrears or change of salary during the year, all of which change the monthly deduction.
It is a quick check, not tax advice. For a filing or a payroll run, confirm with your tax advisor. MatrixHR keeps tax slabs, EOBI and provident fund rules in a rule set versioned by effective date, so a new budget applies from the day it starts. Read how a second approver protects that run in our payroll approval controls guide.
Salary after tax at common amounts
Each page shows the full breakdown for one monthly salary, with last year’s figures beside it.
- Rs 50,000
- Rs 60,000
- Rs 70,000
- Rs 80,000
- Rs 90,000
- Rs 100,000
- Rs 125,000
- Rs 150,000
- Rs 175,000
- Rs 200,000
- Rs 250,000
- Rs 300,000
- Rs 350,000
- Rs 400,000
- Rs 500,000
- Rs 600,000
- Rs 700,000
- Rs 800,000
- Rs 900,000
- Rs 1,000,000
Sources
- FBR Circular No. 2 of 2026-27 (Finance Act 2026), 8 September 2026, para 7 and the note on section 4AB — last verified 22 October 2026
- FBR Circular No. 01 of 2025-26 (Income Tax), para 5; salaried surcharge of 9% above Rs 10 million per FBR Circular No. 2 of 2026-27 — last verified 22 October 2026
- EOBI, Contributions — last verified 22 October 2026