Breakdown
| Band (annual) | Rate | Tax in this band |
|---|---|---|
| 0 – 600,000 | 0% | Rs 0 |
| 600,000 – 1,200,000 | 1% | Rs 6,000 |
| 1,200,000 – 2,200,000 | 11% | Rs 66,000 |
Salary tax slabs 2026-27 (tax year 2027)
| Annual taxable income | Tax |
|---|---|
| Up to Rs 600,000 | No tax |
| Rs 600,001 – 1,200,000 | 1% of the amount above Rs 600,000 |
| Rs 1,200,001 – 2,200,000 | Rs 6,000 + 11% of the amount above Rs 1,200,000 |
| Rs 2,200,001 – 3,200,000 | Rs 116,000 + 20% of the amount above Rs 2,200,000 |
| Rs 3,200,001 – 4,100,000 | Rs 316,000 + 25% of the amount above Rs 3,200,000 |
| Rs 4,100,001 – 5,600,000 | Rs 541,000 + 29% of the amount above Rs 4,100,000 |
| Rs 5,600,001 – 7,000,000 | Rs 976,000 + 32% of the amount above Rs 5,600,000 |
| Above Rs 7,000,000 | Rs 1,424,000 + 35% of the amount above Rs 7,000,000 |
Source: FBR Withholding Tax Rates Card, tax year 2027 (Finance Act 2026). Compared with 2025-26, the rates on income above Rs 2.2 million are lower, two new bands were added, and the 9% surcharge on salaried income above Rs 10 million was removed.
How the tax is worked out
Multiply your monthly taxable salary by 12, find the band your annual income falls in, and take the fixed amount for that band plus the percentage on the part above the band’s start. Your employer deducts roughly one twelfth of the annual tax from each month’s salary. Bonuses, arrears or joining mid-year change the monthly deduction, and the final amount is settled when you file your return.
This is a guide, not tax advice. Deductible allowances (such as Zakat), tax credits (such as for donations or pension contributions) and other income can change what you owe; check with the FBR or a tax adviser. Related tools: percentage calculator, zakat calculator and weeks until the end of the financial year.
Frequently asked questions
How much tax is deducted from a salary of Rs 100,000 a month in 2026-27?
Rs 1,200,000 a year falls in the 1% band, so the tax is Rs 6,000 a year, or Rs 500 a month.
Is there tax on a salary of Rs 50,000 a month?
No. Annual taxable income up to Rs 600,000 (Rs 50,000 a month) is not taxed.
Is the surcharge still charged on high salaries?
Not for salaried individuals in tax year 2027. The 9% surcharge on salaried income above Rs 10 million that applied in 2025-26 was removed by the Finance Act 2026.
When are the new rates applied?
From 1 July 2026, the start of the 2026-27 financial year. Employers apply them to salaries from July 2026 onward.