Published by Legal Point Tax Team | Legal Point Advocates & Consultants, Islamabad
فوری ٹیکس حساب — اپنی تنخواہ درج کریں، نتیجہ فوری دیکھیں
Finance Bill 2026 changed the salary tax structure for every salaried employee in Pakistan from July 1, 2026. Four bracket rates have been reduced, the 9% surcharge has been abolished, and a new slab has been introduced. This free tool lets you enter your monthly or annual salary and instantly see your correct FBR deduction, take-home pay, and exactly how much you are saving compared to last year.
If your July 2026 salary deduction is identical to June 2026, your employer has not yet applied the new Finance Bill 2026 rates. Enter your salary below to find the correct figure and the difference you are owed.
/
Table of Contents
Free Salary Tax Calculator — Pakistan 2026-27
View Full Slab-by-Slab Breakdown (Both Years)
How to Use This Calculator
Enter your monthly or annual gross salary — the total before any deductions as shown on your payslip. Select your filer status. ClickCalculate.
The tool shows three views:
- TY 2026 vs TY 2027 — side by side so you can see exactly what
changed and what your saving is from July 2026 onward - TY 2027 only — new rates currently active in your payroll
- TY 2026 only — old rates if you need to verify a past payslip
Open the slab-by-slab breakdown to see exactly which bracket applies
to each portion of your income and what tax was charged at each level.
FBR Salary Tax Slabs 2026-27
These are the official rates under Finance Bill 2026, effective July 1, 2026 (Tax Year 2027):
| Annual Taxable Income | Tax Rate | Change from TY 2026 |
|---|---|---|
| Up to Rs. 600,000 | 0% | No change |
| Rs. 600,001 – Rs. 1,200,000 | 1% on excess | No change |
| Rs. 1,200,001 – Rs. 2,200,000 | 11% on excess | No change |
| Rs. 2,200,001 – Rs. 3,200,000 | 20% on excess | ↓ was 23% |
| Rs. 3,200,001 – Rs. 4,100,000 | 25% on excess | ↓ was 30% |
| Rs. 4,100,001 – Rs. 5,600,000 | 29% on excess | ↓ was 35% |
| Rs. 5,600,001 – Rs. 7,000,000 | 32% on excess | New slab |
| Above Rs. 7,000,000 | 35% on excess | Threshold raised |
The 9% surcharge under Section 4AB has been completely abolished for salaried individuals. The top rate threshold has been raised from Rs. 4.1 million to Rs. 7 million.
For understanding Salary tax slab rates 206-2027 in detail visit :
Salary Tax Slab 2026 Pakistan — Complete FBR Guide →
Why Your Effective Rate Is Lower Than Your Bracket Rate
This is the most commonly misunderstood part of salary tax in Pakistan.
Pakistan uses a progressive slab system. This means your salary is not taxed at one flat rate. Instead it is divided into portions, and each portion is taxed at its own rate. Only the portion that falls
into a higher bracket is taxed at that higher rate.
Example: Monthly salary Rs. 350,000 (Annual Rs. 4,200,000)
| Portion | Rate | Tax |
|---|---|---|
| First Rs. 600,000 | 0% | Rs. 0 |
| Next Rs. 600,000 | 1% | Rs. 6,000 |
| Next Rs. 1,000,000 | 11% | Rs. 110,000 |
| Next Rs. 1,000,000 | 20% | Rs. 200,000 |
| Next Rs. 900,000 | 25% | Rs. 225,000 |
| Remaining Rs. 100,000 | 29% | Rs. 29,000 |
| Total annual tax | Rs. 570,000 |
Monthly deduction: Rs. 570,000 ÷ 12 = Rs. 47,500
Effective rate: Rs. 570,000 ÷ Rs. 4,200,000 = 13.6%
This person is in the 29% bracket — but only 13.6% of their total income actually goes to FBR. The calculator shows this effective rate automatically for your salary.
درست ٹیکس کاٹ رہا ہے ؟ Employer کیا آپ کا
جولائی 2026 سے Finance Bill 2026 کے نئے ٹیکس ریٹ نافذ ہو چکے ہیں۔ ہر employer کو Section 149 کے تحت جولائی کی تنخواہ سے ہی نئے ریٹ لگانے تھے۔ اگر آپ کی جولائی 2026 کی تنخواہ سے جون 2026 جتنا ہی ٹیکس کٹ رہا ہے تو آپ کے employer نے ابھی تک نئے ریٹ اپ ڈیٹ نہیں کیے۔
اوپر دیے گئے کیلکولیٹر میں اپنی تنخواہ ڈالیں اور درست کٹوتی چیک کریں۔ اگر فرق ہو تو اپنے HR ڈیپارٹمنٹ سے تصحیح کی درخواست کریں۔ اضافی کٹوتی ضائع نہیں ہوتی — 30 September 2026 سے پہلے ریٹرن فائل کر کے واپس لی جا سکتی ہے۔
اگر آپ FBR کی Active Taxpayers List پر رجسٹرڈ نہیں ہیں تو ریفنڈ کلیم نہیں کر سکتے۔ NTN رجسٹریشن اور ٹیکس ریٹرن فائلنگ کے لیے Legal Point کے ماہرین سے رابطہ کریں۔
Frequently Asked Questions
Q: Does this calculator apply to government employees after the 7% salary increase?
Yes. Enter your new gross salary including the increase. Thecalculator applies the TY 2027 slab rates automatically regardlessof sector.
Q: I am a non-filer. Do the new rates still apply to my deduction?
Yes. Your employer deducts salary tax at the same slab rateswhether you are a filer or not. What changes for non-filers is theinability to claim any refund on over-deductions, plus higherwithholding on bank withdrawals, property, and vehicle transactions.
Q: My salary is Rs. 50,000 per month. What is my tax?
Zero. Annual income of Rs. 600,000 and below is fully exempt underboth TY 2026 and TY 2027. No change under Finance Bill 2026 at thisincome level.
Q: Can I recover tax if my employer deducted at old rates?
Yes — but only if you are a registered filer on FBR’s ActiveTaxpayers List. File your Tax Year 2027 return before September 30,The excess appears as a refund claim automatically.
Need Help With Your Return or NTN Registration?
Legal Point Advocates & Consultants — Islamabad & Rawalpindi. Professional tax return filing, NTN registration, payroll compliance review, and FBR advisory for salaried employees and business owners.
Filing deadline for Tax Year 2027: September 30, 2026
📞 +92 333-7703712
🌐 legalpoint.pk
Also read on legalpoint.pk: How to Register Your NTN →
Disclaimer: Based on Finance Bill 2026 as presented June 12, 2026. Subject to final Finance Act 2026 notification by FBR. Assumes gross salary is fully taxable with no deductions. For personalized computation, consult Legal Point Advocates & Consultants. Last reviewed: June 2026.
