The income tax slabs 2026-27 for salaried people in Pakistan are lower than last year: the 23%, 30% and 35% rates were cut to 20%, 25%, 29% and 32%, the top 35% rate now starts at Rs 70 lakh, and the 9% surcharge on salaried income above Rs 1 crore is gone. Business and other non-salaried slabs did not change.
Last updated: 3 November 2026 by Ahmed.
This guide lists every slab for tax year 2027 (1 July 2026 to 30 June 2027) exactly as FBR publishes them, shows worked examples for each slab and explains who must use the salaried table and who must use the business table. All numbers below were calculated with the same formula as our income tax calculator.
Salaried income tax slabs 2026-27 (tax year 2027)
These rates apply when salary is more than 75% of your taxable income. Your employer uses them to deduct tax from your pay every month under section 149.
| Taxable income a year | Income tax |
|---|---|
| Up to Rs 6,00,000 | 0% |
| Rs 6,00,001 to Rs 12,00,000 | 1% of the amount above Rs 6,00,000 |
| Rs 12,00,001 to Rs 22,00,000 | Rs 6,000 + 11% of the amount above Rs 12,00,000 |
| Rs 22,00,001 to Rs 32,00,000 | Rs 1,16,000 + 20% of the amount above Rs 22,00,000 |
| Rs 32,00,001 to Rs 41,00,000 | Rs 3,16,000 + 25% of the amount above Rs 32,00,000 |
| Rs 41,00,001 to Rs 56,00,000 | Rs 5,41,000 + 29% of the amount above Rs 41,00,000 |
| Rs 56,00,001 to Rs 70,00,000 | Rs 9,76,000 + 32% of the amount above Rs 56,00,000 |
| Above Rs 70,00,000 | Rs 14,24,000 + 35% of the amount above Rs 70,00,000 |
There is no surcharge for salaried individuals in 2026-27. The Finance Act 2026 replaced the 9% surcharge with the words “no surcharge shall be payable”.
Income tax slabs 2026-27 for business and non-salaried individuals
Use this table if you run a business, earn from a profession or freelancing on your own account, earn rent outside the separate property regime, or if salary is 75% or less of your taxable income. Associations of persons (AOPs) such as partnerships use the same rates.
| Taxable income a year | Income tax |
|---|---|
| Up to Rs 6,00,000 | 0% |
| Rs 6,00,001 to Rs 12,00,000 | 15% of the amount above Rs 6,00,000 |
| Rs 12,00,001 to Rs 16,00,000 | Rs 90,000 + 20% of the amount above Rs 12,00,000 |
| Rs 16,00,001 to Rs 32,00,000 | Rs 1,70,000 + 30% of the amount above Rs 16,00,000 |
| Rs 32,00,001 to Rs 56,00,000 | Rs 6,50,000 + 40% of the amount above Rs 32,00,000 |
| Above Rs 56,00,000 | Rs 16,10,000 + 45% of the amount above Rs 56,00,000 |
If taxable income is above Rs 1 crore, a 10% surcharge is added on the tax under section 4AB. Read our full guide to business income tax in Pakistan 2026-27 for examples.
Income tax slabs 2026-27 vs 2025-26: what changed
| Yearly salary slab | Rate 2025-26 | Rate 2026-27 |
|---|---|---|
| Up to Rs 6 lakh | 0% | 0% |
| Rs 6 lakh to Rs 12 lakh | 1% | 1% |
| Rs 12 lakh to Rs 22 lakh | 11% | 11% |
| Rs 22 lakh to Rs 32 lakh | 23% | 20% |
| Rs 32 lakh to Rs 41 lakh | 30% | 25% |
| Rs 41 lakh to Rs 56 lakh | 35% | 29% |
| Rs 56 lakh to Rs 70 lakh | 35% | 32% |
| Above Rs 70 lakh | 35% | 35% |
| Surcharge above Rs 1 crore | 9% of tax | None |
Anyone earning up to Rs 22 lakh a year (about Rs 1.83 lakh a month) pays exactly the same tax as last year. Above that, every salaried person pays less. See how much you save at each salary in our budget 2026-27 salary tax relief guide.
Worked examples for each salaried slab
These examples apply the income tax slabs 2026-27 to common yearly salaries, so you can see the tax at every level.
| Yearly salary | Monthly salary | Tax a year | Tax a month | Effective rate | Less than 2025-26 |
|---|---|---|---|---|---|
| Rs 9,00,000 | Rs 75,000 | Rs 3,000 | Rs 250 | 0.3% | Rs 0 |
| Rs 18,00,000 | Rs 1,50,000 | Rs 72,000 | Rs 6,000 | 4% | Rs 0 |
| Rs 30,00,000 | Rs 2,50,000 | Rs 2,76,000 | Rs 23,000 | 9.2% | Rs 24,000 |
| Rs 36,00,000 | Rs 3,00,000 | Rs 4,16,000 | Rs 34,667 | 11.6% | Rs 50,000 |
| Rs 50,00,000 | Rs 4,16,667 | Rs 8,02,000 | Rs 66,833 | 16% | Rs 1,29,000 |
| Rs 65,00,000 | Rs 5,41,667 | Rs 12,64,000 | Rs 1,05,333 | 19.4% | Rs 1,92,000 |
| Rs 90,00,000 | Rs 7,50,000 | Rs 21,24,000 | Rs 1,77,000 | 23.6% | Rs 2,07,000 |
| Rs 1,20,00,000 | Rs 10,00,000 | Rs 31,74,000 | Rs 2,64,500 | 26.5% | Rs 5,11,290 |
How to read the income tax slabs 2026-27: Rs 36 lakh example
Rs 36 lakh falls in the Rs 32 lakh to Rs 41 lakh slab. Tax = Rs 3,16,000 (fixed amount) + 25% of (Rs 36,00,000 − Rs 32,00,000) = Rs 3,16,000 + Rs 1,00,000 = Rs 4,16,000 a year, or Rs 34,667 a month. The fixed amount is simply the total tax on all the lower slabs.
Salaried or non-salaried: the 75% rule
Under the income tax slabs 2026-27, you use the salaried table only if your salary is more than 75% of your total taxable income. If you earn Rs 20 lakh salary and Rs 10 lakh from a side business, salary is 67% of Rs 30 lakh, so the business table applies to all Rs 30 lakh.
In that case tax is Rs 5,90,000 instead of Rs 2,76,000 on the salaried table. Keeping salary above 75% of your income makes a big difference.
Do non-filers pay higher income tax on salary?
No. Salary tax under section 149 is deducted at the same income tax slabs 2026-27 for filers and non-filers. The rule that doubles withholding for people not on the Active Taxpayers List does not apply to salary. It does apply to bank profit, National Savings profit, property and vehicle deals, so it still pays to become a filer.
Key facts about the new tax year
- Tax year 2027 runs from 1 July 2026 to 30 June 2027. The return for it is due by 30 September 2027 unless FBR extends the date.
- Income up to Rs 6,00,000 a year is tax free for every individual.
- Under the income tax slabs 2026-27, salaried rates fell in four slabs; the top 35% rate now starts at Rs 70 lakh instead of Rs 41 lakh.
- The 9% surcharge on salaried income above Rs 1 crore was removed.
- Business and AOP slabs are unchanged, and their 10% surcharge above Rs 1 crore stays.
Want your exact figure with bonus and allowances? Use our free income tax calculator. It also works backwards from the take-home pay you want.
FAQs
What are the income tax slabs 2026-27 for salaried persons?
Up to Rs 6 lakh: 0%. Rs 6-12 lakh: 1%. Rs 12-22 lakh: 11%. Rs 22-32 lakh: 20%. Rs 32-41 lakh: 25%. Rs 41-56 lakh: 29%. Rs 56-70 lakh: 32%. Above Rs 70 lakh: 35%. Each rate applies only to income inside that slab.
Is there any surcharge on salary in 2026-27?
No. Under the income tax slabs 2026-27 there is no surcharge for salaried people. The Finance Act 2026 removed the 9% surcharge that salaried people earning above Rs 1 crore paid in 2025-26.
Did the business income tax slabs change in 2026-27?
No. Non-salaried individuals and AOPs pay 0% up to Rs 6 lakh, then 15%, 20%, 30%, 40% and 45%, with a 10% surcharge above Rs 1 crore, the same as 2025-26.
From when do the income tax slabs 2026-27 apply?
From 1 July 2026, for tax year 2027. Employers should have adjusted monthly deductions from July 2026 salaries.
How much tax on Rs 1 lakh monthly salary in 2026-27?
Rs 500 a month (Rs 6,000 a year). Rs 1 lakh a month is Rs 12 lakh a year, and only the Rs 6 lakh above the tax-free limit is taxed at 1%.
This guide is for general information only and is not tax advice. Your final tax can differ if you have other income, tax credits or adjustable withholding taxes. Confirm with FBR or a tax adviser before you file.
Related Guides
- Income tax calculator 2026-27 (salary and business)
- Tax on salary in Pakistan: monthly table
- Budget 2026-27 salary tax relief: how much you save
- Business income tax in Pakistan 2026-27
- How to become a filer in Pakistan
- Bank profit rates in Pakistan
- Best investments for monthly income