Tax & Salary
Pakistan Salary Tax Slabs 2026–27
Direct answer
For 2026–27, salary tax is calculated on annual taxable salary using progressive slabs. Only the income inside each higher band is charged at that band’s marginal rate; the whole salary is not taxed at the highest rate reached.
Key takeaways
- Annual taxable salary determines the slab.
- The top rate reached is the marginal rate, not the effective rate.
- Monthly tax is an annual estimate divided by 12.
- Credits, exemptions and employer adjustments are outside the basic slab model.
How the progressive slabs work
Start with annual taxable salary. Find the row containing that amount, take the fixed tax shown for that row, then add the marginal percentage of income above the row’s floor.
Moving into a higher slab does not cause all earlier income to be taxed again at the higher rate.
Marginal rate vs effective rate
The marginal rate applies to the next rupee inside the current band. The effective rate is total annual tax divided by annual income. It is normally lower because earlier portions of income are taxed at lower rates.
Important scope
This reference explains the standard salaried-person slab calculation used by Seedha Hisab. It does not calculate tax credits, special exemptions, multiple income heads, arrears or a formal FBR assessment.
Original reference table
Salaried-person slab reference
| Annual taxable salary | Fixed tax | Rate above floor |
|---|---|---|
| Up to Rs 600,000 | Rs 0 | 0% |
| Rs 600,001–1,200,000 | Rs 0 | 1% above Rs 600,000 |
| Rs 1,200,001–2,200,000 | Rs 6,000 | 11% above Rs 1,200,000 |
| Rs 2,200,001–3,200,000 | Rs 116,000 | 20% above Rs 2,200,000 |
| Rs 3,200,001–4,100,000 | Rs 316,000 | 25% above Rs 3,200,000 |
| Rs 4,100,001–5,600,000 | Rs 541,000 | 29% above Rs 4,100,000 |
| Rs 5,600,001–7,000,000 | Rs 976,000 | 32% above Rs 5,600,000 |
| Above Rs 7,000,000 | Rs 1,424,000 | 35% above Rs 7,000,000 |
Original visual
Annual salary vs estimated annual tax
Want your own estimate?
Use the transparent calculator
Enter your figures and see the formula, assumptions and result.
Useful questions
Quick answers
Is monthly salary taxed separately?
Payroll may deduct monthly, but the slab estimate starts by annualising taxable salary and then dividing the annual result across the year.
Does entering a 20% slab mean all income is taxed at 20%?
No. The fixed amount captures lower bands and 20% applies only to income above that slab’s floor.
Sources & references
How this guide was checked
Federal Board of Revenue (FBR)
Finance Act 2026 — First Schedule, Part I, Division I
Primary legal source used for the displayed slab model.
View official sourceFound outdated information? Report a correction. Seedha Hisab publishes educational estimates, not personalised tax, legal or religious advice.
Continue learning
Editorial owner: Seedha Hisab Editorial. No invented expert reviewer or government affiliation.
Update history: 10 September 2026 — guide created or verified against the source and methodology shown above.