The 2026–27 budget cut rates for salaried people and added more slabs; the 9% surcharge on salary income above Rs 10 million was withdrawn for salaried individuals. Tax is deducted monthly by your employer. Verify with the FBR before relying on these figures.
How to use the Income Tax Calculator Pakistan
- Taxable salary
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter your monthly (or yearly) taxable salary.
Tips
- Use your real spending from bank statements rather than guesses.
- Automate savings so they happen before you spend.
- Revisit your plan once a year or after any big life change.
- Keep an emergency fund before investing for long-term goals.
Common mistakes to avoid
- Underestimating irregular expenses such as car repairs, gifts and annual bills.
- Ignoring inflation for long-term goals.
- Taking on high-interest debt to fund wants.
What each result means
- Monthly income tax = [Yearly income tax]÷12
- Monthly salary = [Taxable salary]÷12
- Monthly take-home after tax = ([Taxable salary] – [Yearly income tax])÷12
- Yearly take-home after tax = [Taxable salary] – [Yearly income tax]
Example values
How the main result changes when Taxable salary changes and everything else stays at the example values above:
| Taxable salary (per month) | Yearly income tax |
|---|---|
| 75,000 | 3,000 |
| 112,500 | 22,500 |
| 150,000 | 72,000 |
| 187,500 | 126,000 |
| 225,000 | 216,000 |
| 300,000 | 416,000 |
Formula
Annual taxable income = monthly salary × 12Tax (salaried, TY2027): up to Rs 600,000 – 0%; 600,001–1,200,000 – 1% of the excess; 1.2–2.2M – Rs 6,000 + 11%; 2.2–3.2M – Rs 116,000 + 20%; 3.2–4.1M – Rs 316,000 + 25%; 4.1–5.6M – Rs 541,000 + 29%; 5.6–7M – Rs 976,000 + 32%; above Rs 7M – Rs 1,424,000 + 35%Worked example
Inputs — Taxable salary: Rs 150,000 per month.
Results — Yearly income tax = Rs 72,000.00; Monthly income tax = Rs 6,000.00; Monthly salary = Rs 150,000.00; Monthly take-home after tax = Rs 144,000.00; Yearly take-home after tax = Rs 1,728,000.00; Average tax rate = 4 %; Marginal tax rate = 11 %.
Frequently asked questions
What is the tax-free income limit in Pakistan for salaried people?
Rs 600,000 a year (Rs 50,000 a month) for tax year 2027.
How much tax on a Rs 100,000 monthly salary?
Rs 1.2 million a year → Rs 6,000 a year (Rs 500 a month).
Do these slabs apply to business income?
No – non-salaried individuals have separate slabs.
What formula does the Income Tax Calculator Pakistan use?
Annual taxable income = monthly salary × 12.