INCOME TAX SLAB 2026-2027 SALARY INDIVIDUALS
The income tax slabs for salaried individuals in Pakistan for Tax Year 2026–2027 (FY 2026–27) meaning higher rates only touch the portion of your income that falls within each specific bracket.
FBR Salary Tax Slabs (FY 2026–2027)
| Annual Taxable Salary (PKR) | Tax Rate |
|---|---|
| Up to Rs. 600,000 | 0% (Tax Free) |
| Rs. 600,001 to Rs. 1,200,000 | 1% of the amount exceeding Rs. 600,000 |
| Rs. 1,200,001 to Rs. 2,200,000 | Rs. 6,000 + 11% of the amount exceeding Rs. 1,200,000 |
| Rs. 2,200,001 to Rs. 3,200,000 | Rs. 116,000 + 20% of the amount exceeding Rs. 2,200,000 |
| Rs. 3,200,001 to Rs. 4,100,000 | Rs. 316,000 + 25% of the amount exceeding Rs. 3,200,000 |
| Rs. 4,100,001 to Rs. 5,600,000 | Rs. 541,000 + 29% of the amount exceeding Rs. 4,100,000 |
| Rs. 5,600,001 to Rs. 7,000,000 | Rs. 976,000 + 32% of the amount exceeding Rs. 5,600,000 |
| Above Rs. 7,000,000 | Rs. 1,424,000 + 35% of the amount exceeding Rs. 7,000,000 |
Key Highlights for FY 2026–27
- Tax-Free Threshold: Incomes up to Rs. 600,000 per year (or Rs. 50,000 per month) remain 100% exempt from tax.
- Surcharge Abolished: The 9% high-income surcharge on annual incomes exceeding Rs. 10 million has been removed for salaried individuals.
- Withholding Tax: Employers deduct income tax directly from your monthly salary source under Section 149 of the Income Tax Ordinance.
- Interactive Tool: You can test your exact figures using the
If you share your gross monthly salary, I can help calculate your estimated monthly tax deduction and take-home pay.
Freelancer tax rates in Pakistan for FY 2026-27
Your Pakistan Software Export Board (PSEB) registration and filer status decide which Section 154A tax rate applies to eligible IT and IT-enabled export income.
| PSEB status | Taxpayer status | Rate on income before fees | How the tax is treated |
|---|---|---|---|
| Registered | Filer (on ATL) | 0.25% | Lower PSEB rate under Section 154A |
| Not registered | Filer (on ATL) | 1% | General rate under Section 154A |
| Registered | Non-filer | 0.5% | Double the filer rate, for non-filers |
| Not registered | Non-filer | 2% | Double the filer rate, for non-filers |
For non-filers, these rates estimate what the bank may deduct. If you are not on ATL or do not meet the other Section 154A requirements, this may not be your final tax.
Business & AOP tax rates in Pakistan for 2026-27
Sole traders, partnerships (AOPs), and professionals are taxed in steps on their yearly taxable income. Each step only applies to the income inside it, so for 2026-27 the first Rs. 600,000 is tax-free.
| Yearly taxable income | Rate on this step | What you pay |
|---|---|---|
| Up to Rs. 600,000 | 0% | No tax |
| Rs. 600,001 – 1,200,000 | 15% | on income above Rs. 600,000 |
| Rs. 1,200,001 – 1,600,000 | 20% | plus Rs. 90,000 fixed |
| Rs. 1,600,001 – 3,200,000 | 30% | plus Rs. 170,000 fixed |
| Rs. 3,200,001 – 5,600,000 | 40% | plus Rs. 650,000 fixed |
| Above Rs. 5,600,000 | 45% | plus Rs. 1,610,000 fixed |
An extra 10% is added on top of the tax when taxable income is above Rs. 10 million. A sole trader who also draws a salary pays 9% of the tax for 2025-26 and nothing from 2026-27; an AOP always pays the 10%.
Professional firms that cannot become a company are capped at a 40% top rate instead of 45%. The cap was 32% for 2017-18 and absent in between.
This table is the 2026-27 one. Earlier years used different bands — pick a tax year in the calculator above to use them, and compare them side by side under “Same income across tax years”.
Farm tax rates for 2026-27
All four provinces moved to the same scale from 1 January 2025. A farmer pays nothing on the first Rs 600,000, then the steps below.
| Farm income for the year | Tax |
|---|---|
| Up to Rs. 600,000 | No tax |
| Rs. 600,001 – Rs. 1,200,000 | 15% of the amount over Rs. 600,000 |
| Rs. 1,200,001 – Rs. 1,600,000 | Rs. 90,000 + 20% of the amount over Rs. 1,200,000 |
| Rs. 1,600,001 – Rs. 3,200,000 | Rs. 170,000 + 30% of the amount over Rs. 1,600,000 |
| Rs. 3,200,001 – 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 |
Companies that farm pay a flat rate instead: 20% for a small company and 29% for any other. Above Rs 150 million of farm income, provinces add a second charge on top.