Is income up to Rs 600,000 tax free?

Yes. The first Rs 600,000 of annual taxable income (Rs 50,000 per month) is exempt for both salaried and non-salaried individuals.

What counts as 'salaried'?

If your salary is more than 75% of your total taxable income, you are taxed under the salaried schedule, which has lower rates.

Does this include the surcharge?

Yes for business / non-salaried income above Rs 10 million (10% of the tax). Salaried individuals no longer pay a surcharge from tax year 2027; select FY 2025-26 to see the old 9% surcharge.

Are provident fund or medical allowance deducted first?

Certain allowances and contributions are exempt or treated separately. This calculator taxes the figure you enter; enter your taxable salary for the most accurate result.

How often do the slabs change?

Usually every year in the Federal Budget (June), effective 1 July. Searchable updates this tool when the Finance Act is passed and shows the review date above.

Taxv1.2.0Last reviewed 15 Sept 2026

Income Tax Calculator Pakistan 2026-27

Free salary tax calculator for Pakistan: enter your monthly salary and see income tax under the FBR 2026-27 slabs, your take-home, effective rate and slab.

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How this is calculated

Pakistan taxes individual income in progressive slabs. Only the portion of income inside each slab is taxed at that slab's rate, so moving into a higher slab never reduces take-home pay.

For salaried individuals (where salary is more than 75% of total income) the Finance Act sets a separate, lower schedule than for business individuals.

Formula: tax = fixed amount for your slab + rate × (taxable income − slab floor).

A surcharge applies to the tax amount when taxable income exceeds Rs 10 million, 10% for non-salaried individuals and AOPs. Finance Act 2026 withdrew the 9% salaried surcharge from 1 July 2026, and eased the middle slabs (23% → 20%, 30% → 25%, with new 29% and 32% bands before the 35% top rate now starting at Rs 7 million).

This calculator uses annual taxable income; monthly amounts are simply divided by 12, which is how employers compute the monthly deduction under section 149 of the Income Tax Ordinance 2001.

Frequently asked questions

Is income up to Rs 600,000 tax free?: Yes. The first Rs 600,000 of annual taxable income (Rs 50,000 per month) is exempt for both salaried and non-salaried individuals.
What counts as 'salaried'?: If your salary is more than 75% of your total taxable income, you are taxed under the salaried schedule, which has lower rates.
Does this include the surcharge?: Yes for business / non-salaried income above Rs 10 million (10% of the tax). Salaried individuals no longer pay a surcharge from tax year 2027; select FY 2025-26 to see the old 9% surcharge.
Are provident fund or medical allowance deducted first?: Certain allowances and contributions are exempt or treated separately. This calculator taxes the figure you enter; enter your taxable salary for the most accurate result.
How often do the slabs change?: Usually every year in the Federal Budget (June), effective 1 July. Searchable updates this tool when the Finance Act is passed and shows the review date above.

Sources

Finance Act 2026: First Schedule, Part I, Division I (salaried slabs revised; s.4AB surcharge withdrawn for salaried): Federal Board of Revenue

Version 1.2.0 · reviewed 15 Sept 2026. Rates change with the Federal Budget and regulator notifications; we update this tool when they do. Confirm with the primary source before making financial decisions.

Topics:FBR