Pakistan Salary Tax Calculator
Budget 2026–27 vs today

The Finance Bill 2026 (presented 12 June 2026) proposes two things for salaried taxpayers:

1. Lower rates in four bands. 2.2M–3.2M: 23% → 20% · 3.2M–4.1M: 30% → 25% · 4.1M–5.6M: 35% → 29% · 5.6M–7M: 35% → 32%. Income above Rs 7M stays at 35%, and the bands below Rs 2.2M (0%, 1%, 11%) are unchanged.

2. The surcharge is abolished. Currently, if your taxable income exceeds Rs 10M, a 9% surcharge is added on top of your computed tax. The Bill proposes removing it entirely — a meaningful extra cut for high earners.

⚠️ These are proposals until the Finance Act is passed by the National Assembly (usually late June). If approved, they apply to salaries from 1 July 2026 — your July payslip, not today's.

This is the most common tax myth in Pakistan. Slabs are marginal: a higher rate applies only to the rupees above the boundary, not to everything you earn.

So a raise or bonus that pushes you over a boundary can never leave you with less take-home pay. Earning one more rupee is always worth it — the higher rate touches only that rupee.

A bonus isn't taxed separately — it's added to your salary income for the year, and the total is taxed through the same slabs. Three practical effects:

1. Your bonus is taxed at your top (marginal) rate(s). If your salary already fills the lower bands, every bonus rupee lands in your highest band — so a bonus often "feels" more heavily taxed than your monthly pay. That's marginal math, not a penalty.

2. It can straddle a boundary. If your bonus crosses into the next band, only the part above the line is taxed at the higher rate. Enter your bonus above and the breakdown table shows the exact split.

3. Withholding may look odd month to month. Employers estimate your annual tax and deduct it across the year. In a bonus month they recompute the annual projection, so that month's deduction jumps. Over the full year it reconciles to the same total this calculator shows.

1. You may be looking at last year's rates. Tax Year 2025 (salaries July 2024 – June 2025, returns filed in late 2025) used much higher rates: 5% / 15% / 25% / 30% / 35% with fixed amounts of Rs 30,000 / 180,000 / 430,000 / 700,000. Those were cut sharply from July 2025. This page's “current” column is Tax Year 2026 — the rates on your payslips since July 2025 — and many online calculators and old payslips still reflect TY2025.

2. Payslip withholding ≠ this annual computation. Employers may exclude exempt items (e.g. medical allowance up to 10% of basic is tax-free) before applying the slabs, and they re-project your annual tax each month — so a single month's deduction can differ from annual ÷ 12 even when both are right. Enter your taxable salary here for the closest match.

3. Credits and rebates. Teacher/researcher rebate, Zakat, donations and similar adjustments reduce the final bill and are intentionally not modelled here (see the next section).

If after all three the numbers still disagree for a specific salary, we'd genuinely like to know — the sources for every rate on this page are linked in the footer.

These slabs apply when salary is more than 75% of your taxable income for the year. If you have major other income (business, rent), different rates may apply to it.

For honesty, this calculator does not include: tax credits and rebates (e.g. the full-time teacher/researcher rebate), Zakat or donation deductions, medical allowance exemptions, provident fund treatment, prior-year adjustments, or other income heads. Withholding on your payslip can also differ slightly from the annual computation.

It estimates income tax only — a guide, not a filing. For decisions that matter, please confirm with a tax professional or the FBR.