How to read the income tax slabs in Pakistan
Each row is a band of annual taxable income. The tax for a band is a fixed amount plus a percentage of the income above the band’s lower limit. The fixed amount is not an extra charge: it is exactly the tax due on all the bands below, which is why you only ever use one row to compute your tax.
The same Rs 600,000 tax-free threshold applies in all three tax years shown. The main differences are how quickly the rates climb and where the top 35% rate begins, and whether a surcharge applies to incomes above Rs 10 million.
Where these tax slabs come from
Every table is read from the wording of the Income Tax Ordinance 2001, First Schedule, Part I, Division I, as amended by that year’s Finance Act, on the Federal Board of Revenue’s own website. The source link and the date it was checked are printed under each table.
Use the slabs
To turn a table into a payslip figure, use the salary tax calculator, which shows every slab’s contribution to your tax.
How to use it
- Find your tax year.
- Find the row that contains your annual taxable income.
- Add the fixed amount to the percentage of the income above the row’s lower limit.
Frequently asked questions
What is the tax-free salary limit in Pakistan for 2026-27?
The first Rs 600,000 of annual taxable income is taxed at 0%, which is Rs 50,000 a month. That threshold is the same in 2026-27 as in the two tax years before it, and above it tax starts at 1%.
Is there a surcharge in 2026-27?
No. For this tax year no surcharge is payable on salaried income; earlier years had a surcharge on income above Rs 10 million.
Where do the slabs come from?
They are read from the law itself as published by the Federal Board of Revenue: Finance Bill 2026 (published by FBR), First Schedule Part I Division I clause (2) and section 4AB. The verification date and a link to the source are shown next to the slab table (last verified 24 September 2026).
What is the highest income tax rate in Pakistan for salaried people?
35%, in every tax year shown. For 2026-27 it applies to income above Rs 7,000,000, compared with Rs 4,100,000 in 2025-26.
Are these slabs for filers only?
These are the annual slabs for salaried individuals. Different withholding rates apply to some payments for people who are not on the active taxpayer list, which are outside this table.
Slabs verified on 24 September 2026. Check the linked source before relying on them for a filing.