PakIncomeTax
FY 2026–27 Income Tax Slabs — Salaried Individuals
Finance Act 2026 — effective July 1, 2026 to June 30, 2027. The top 35% threshold was raised from Rs. 4,100,000 to Rs. 7,000,000, the 2.2M–3.2M rate was cut from 23% to 20%, the 3.2M–4.1M rate was cut from 30% to 25%, two new intermediate slabs (29% and 32%) were introduced above Rs. 4.1M, and the 9% surcharge on income above Rs. 10,000,000 was abolished.
FY 2026–27 slab table
| Taxable Annual Income | Tax Rate |
|---|---|
| PKR 0 – PKR 6.00 Lac | 0% |
| PKR 6.00 Lac – PKR 12.00 Lac | 1% |
| PKR 12.00 Lac – PKR 22.00 Lac | PKR 6,000 + 11% of excess |
| PKR 22.00 Lac – PKR 32.00 Lac | PKR 1.16 Lac + 20% of excess |
| PKR 32.00 Lac – PKR 41.00 Lac | PKR 3.16 Lac + 25% of excess |
| PKR 41.00 Lac – PKR 56.00 Lac | PKR 5.41 Lac + 28.999999999999996% of excess |
| PKR 56.00 Lac – PKR 70.00 Lac | PKR 9.76 Lac + 32% of excess |
| Above PKR 70.00 Lac | PKR 14.24 Lac + 35% of excess |
Worked example — Rs. 150,000/month salary
For an annual taxable income of PKR 18.00 Lac in FY 2026–27, the tax payable works out to approximately PKR 72,000 per year (PKR 6,000/month), before any medical allowance or other exemptions.
Full slab wording (as published by FBR)
- Where the taxable salary income does not exceed Rs. 600,000, the rate of income tax is 0%.
- Where the taxable salary income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000, the rate of income tax is 1% of the amount exceeding Rs. 600,000.
- Where the taxable salary income exceeds Rs. 1,200,000 but does not exceed Rs. 2,200,000, the rate of income tax is Rs. 6,000 + 11% of the amount exceeding Rs. 1,200,000.
- Where the taxable salary income exceeds Rs. 2,200,000 but does not exceed Rs. 3,200,000, the rate of income tax is Rs. 116,000 + 20% of the amount exceeding Rs. 2,200,000.
- Where the taxable salary income exceeds Rs. 3,200,000 but does not exceed Rs. 4,100,000, the rate of income tax is Rs. 316,000 + 25% of the amount exceeding Rs. 3,200,000.
- Where the taxable salary income exceeds Rs. 4,100,000 but does not exceed Rs. 5,600,000, the rate of income tax is Rs. 541,000 + 29% of the amount exceeding Rs. 4,100,000.
- Where the taxable salary income exceeds Rs. 5,600,000 but does not exceed Rs. 7,000,000, the rate of income tax is Rs. 976,000 + 32% of the amount exceeding Rs. 5,600,000.
- Where the taxable salary income exceeds Rs. 7,000,000, the rate of income tax is Rs. 1,424,000 + 35% of the amount exceeding Rs. 7,000,000.
About FY 2026–27
Finance Act 2026 — effective July 1, 2026 to June 30, 2027. The top 35% threshold was raised from Rs. 4,100,000 to Rs. 7,000,000, the 2.2M–3.2M rate was cut from 23% to 20%, the 3.2M–4.1M rate was cut from 30% to 25%, two new intermediate slabs (29% and 32%) were introduced above Rs. 4.1M, and the 9% surcharge on income above Rs. 10,000,000 was abolished.