Pakistan Income Tax Calculator
Salary tax and take-home pay for tax year 2027 (1 July 2026 to 30 June 2027), a month and a year, slab by slab, with last year compared.
Tax year
Bonus and arrears (Rs a year)
Medical allowance up to 10% of basic pay is tax-free when your employer doesn't give free treatment.
The arrears are added on top of this and taxed at that year's slabs.
Other income (Rs a year)
If salary is 75% or less of your taxable income, all of it moves to the non-salaried (business) slabs. Leave out rent, bank profit, dividends and capital gains: they're taxed separately.
Deductions and tax credits (Rs a year)
Under the Zakat and Ushr Ordinance. Comes off taxable income.
Credit at your average rate, up to 30% of taxable income.
Credit at your average rate, up to 20% of taxable income.
Salaried tax only. Bank profit, dividends, rent and capital gains are taxed separately, mostly withheld at source.
Quick table: tax a month on common salaries
| Salary a month | Tax a month, 2027 | Was in 2026 | Take-home |
|---|---|---|---|
| Rs 50,000 | Rs 0 | Rs 0 | Rs 50,000 |
| Rs 100,000 | Rs 500 | Rs 500 | Rs 99,500 |
| Rs 150,000 | Rs 6,000 | Rs 6,000 | Rs 144,000 |
| Rs 200,000 | Rs 13,000 | Rs 13,500 | Rs 187,000 |
| Rs 300,000 | Rs 34,667 | Rs 38,833 | Rs 265,333 |
| Rs 500,000 | Rs 92,000 | Rs 106,750 | Rs 408,000 |
| Rs 1,000,000 | Rs 264,500 | Rs 307,108 | Rs 735,500 |
How your salary tax is worked out
Yearly pay → taxable income → the slab you fall in → take-home a month.
- 1
Your yearly pay
Rs 150,000 × 12
= Rs 1,800,000 - 2
Taxable income
nothing off
= Rs 1,800,000
salaried slabs - 3
Tax by slab
Rs 6,000 + 11% × Rs 600,000
= Rs 72,000 - 4
Take-home
− Rs 72,000 tax
= Rs 1,728,000
Rs 144,000 a month
Read more: the formula, a worked example, the tax year 2027 slabs and the rules
In Pakistan, tax on a salary is worked out on your income for the whole tax year (Tax year 2027: 1 July 2026 to 30 June 2027) and your employer takes it from each month's pay under section 149. The rate rises slab by slab, and each rate applies only to the part of your income inside that slab.
The formula
yearly pay = monthly salary × 12 + bonus + arrears − tax-free allowances
taxable income = yearly pay + other income − Zakat
slab tax = fixed amount for your slab + rate × (taxable income − start of your slab)
average rate = slab tax ÷ taxable income
credits = average rate × (donations up to 30% + pension fund up to 20% of taxable income)
tax = slab tax − credits, + surcharge if taxable income is over Rs 10,000,000
take-home = yearly pay + other income − tax
Worked example
A salary of Rs 150,000 a month, no bonus, no other income, Tax year 2027.
Yearly pay: Rs 150,000 × 12 = Rs 1,800,000, all taxable.
Slab: Rs 1,800,000 falls in the 11% slab that starts at Rs 1,200,000. Tax = Rs 6,000 + 11% × (Rs 1,800,000 − Rs 1,200,000) = Rs 6,000 + 11% × Rs 600,000 = Rs 6,000 + Rs 66,000 = Rs 72,000 a year, or Rs 6,000 a month.
Take-home: Rs 1,800,000 − Rs 72,000 = Rs 1,728,000 a year, which is Rs 144,000 a month. Your effective rate is 4% and your marginal rate is 11%.
Salaried slabs, Tax year 2027 (Finance Act 2026)
| Taxable income a year | Tax |
|---|---|
| Up to Rs 600,000 | Nothing |
| 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 |
| Over Rs 7,000,000 | Rs 1,424,000 + 35% of the amount over Rs 7,000,000 |
Surcharge: none for salaried people. Source: Finance Act 2026, First Schedule, Part I, Division I (fbr.gov.pk).
Salaried slabs, Tax year 2026 (Finance Act 2025)
| Taxable income a year | Tax |
|---|---|
| Up to Rs 600,000 | Nothing |
| 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 + 23% of the amount over Rs 2,200,000 |
| Rs 3,200,001 to Rs 4,100,000 | Rs 346,000 + 30% of the amount over Rs 3,200,000 |
| Over Rs 4,100,000 | Rs 616,000 + 35% of the amount over Rs 4,100,000 |
Surcharge: 9% of the tax for salaried people with taxable income over Rs 10,000,000.
Non-salaried (business) slabs, Tax year 2027
| Taxable income a year | Tax |
|---|---|
| Up to Rs 600,000 | Nothing |
| Rs 600,001 to Rs 1,200,000 | 15% of the amount over Rs 600,000 |
| Rs 1,200,001 to Rs 1,600,000 | Rs 90,000 + 20% of the amount over Rs 1,200,000 |
| Rs 1,600,001 to Rs 3,200,000 | Rs 170,000 + 30% of the amount over Rs 1,600,000 |
| Rs 3,200,001 to Rs 5,600,000 | Rs 650,000 + 40% of the amount over Rs 3,200,000 |
| Over Rs 5,600,000 | Rs 1,610,000 + 45% of the amount over Rs 5,600,000 |
Used for everyone whose salary is 75% or less of taxable income. Surcharge: 10% of the tax when taxable income is over Rs 10,000,000.
Bonus and arrears
A bonus is part of your salary for the year it's paid, so it's taxed at your slab rates; the calculator shows how much extra tax it causes. Arrears of salary (back pay for an earlier year) can, if you choose, be taxed at the rates of the year they relate to (section 12(7) of the Income Tax Ordinance 2001): the calculator adds them to your income for that year and charges the difference.
Deductions and credits
- Zakat (section 60): Zakat paid under the Zakat and Ushr Ordinance comes off your taxable income.
- Donations (section 61): a credit at your average tax rate on donations to approved bodies, up to 30% of taxable income.
- Pension fund or VPS (section 63): a credit at your average tax rate on contributions to an approved pension fund, up to 20% of taxable income.
- Medical allowance: up to 10% of basic pay is exempt when free medical treatment isn't provided (Second Schedule).
Bank profit, dividends and filers
Profit on bank deposits and dividends are taxed separately by withholding at source, not at your salary slabs. For Tax year 2026 the usual rates for people on the Active Taxpayers List (filers) were 20% on bank profit and 15% on most dividends; people not on the list generally pay double. Your salary tax is the same whether you file or not, but filing a return keeps you on the list and keeps these other rates lower.
Pakistanis working abroad (Gulf)
If you work in the UAE, Saudi Arabia, Qatar or elsewhere and spend less than 183 days in Pakistan in a tax year, you're normally non-resident. Non-residents pay Pakistan tax only on Pakistan-source income, such as rent from a house in Pakistan or profit on a Pakistani bank account, so the Gulf salary itself isn't taxed in Pakistan. This calculator is for salary earned in Pakistan.
For general information, not tax advice. It works out a full tax year at a steady monthly salary; your employer's monthly deduction can differ in the month a bonus is paid. It doesn't cover pensioners, rent, capital gains, special reductions (for example for senior citizens, teachers or disabled people) or provincial taxes. Tax year 2027 slabs are as reported from the Finance Act 2026 (not yet seen on an FBR page). Check figures with FBR or a tax adviser before filing your return.
Common questions
How much tax is taken from a Rs 100,000 salary in Pakistan?
On a salary of Rs 100,000 a month (Rs 1,200,000 a year) the salaried slabs for Tax year 2027 give Rs 6,000 of tax a year, about Rs 500 a month, so you take home Rs 99,500 a month. On Rs 200,000 a month the tax is Rs 13,000 a month. Your employer deducts it from each month's pay.
What are the income tax slabs for salaried people in Tax year 2027?
Tax year 2027 runs from 1 July 2026 to 30 June 2027. The first Rs 600,000 a year is tax-free. Above that, rates rise slab by slab: 1%, 11%, 20%, 25%, 29%, 32%, 35%. Each slab's rate applies only to the part of your income inside it, which is why the Finance Act writes them as a fixed amount plus a rate on the excess.
Who counts as a salaried taxpayer?
You use the salaried slabs when salary is more than 75% of your taxable income. If business, freelance or other normal income makes up a bigger share, all of your taxable income is taxed at the higher non-salaried (business) slabs instead. Rent, bank profit, dividends and capital gains are taxed separately and don't count here.
Can I reduce my salary tax in Pakistan?
Yes, a little. Zakat paid under the Zakat and Ushr Ordinance comes off your taxable income. Donations to approved charities (up to 30% of taxable income) and contributions to an approved pension fund or VPS (up to 20%) give a tax credit at your average tax rate. A medical allowance up to 10% of basic pay is also tax-free.
Do Pakistanis working in the Gulf pay tax in Pakistan?
Not on their Gulf salary if they are non-resident. You are resident in a tax year if you spend 183 days or more in Pakistan. Non-residents pay Pakistan tax only on Pakistan-source income, such as rent from a property in Pakistan or profit on a Pakistani bank account.
Does being a non-filer change my salary tax?
No. The tax on your salary uses the same slabs whether or not you are on FBR's Active Taxpayers List. Being a non-filer makes many other withholding taxes higher, such as tax on bank profit and dividends (usually double), property and vehicle deals, so filing a return still saves money.
Related calculators
Made by Zulu Calculator, part of AlphaZulu LLC. Formulas are shown in full and rule figures are checked against official sources; see how we build calculators.