FBR Tax Slabs 2026-27
Salaried Individuals
| Slab | Range (Annual) | Rate |
|---|---|---|
| #1 | Rs 0 - Rs 600,000 | 0.0% |
| #2 | Rs 600,000 - Rs 1,200,000 | 1.0% |
| #3 | Rs 1,200,000 - Rs 2,200,000 | 11.0% |
| #4 | Rs 2,200,000 - Rs 3,200,000 | 23.0% |
| #5 | Rs 3,200,000 - Rs 4,100,000 | 25.0% |
| #6 | Rs 4,100,000 - Above | 30.0% |
Non-Salaried Individuals & AOP
| Slab | Annual Income Range | Tax |
|---|---|---|
| #1 | Rs 0 - Rs 600,000 | 0 |
| #2 | Rs 600,000 - Rs 800,000 | 15% of amount > 600,000 |
| #3 | Rs 800,000 - Rs 1,200,000 | 30,000 + 20% of amount > 800,000 |
| #4 | Rs 1,200,000 - Rs 2,400,000 | 110,000 + 25% of amount > 1.2M |
| #5 | Rs 2,400,000 - Rs 3,000,000 | 410,000 + 30% of amount > 2.4M |
| #6 | Rs 3,000,000 - Above | 590,000 + 35% of amount > 3M |
Key Changes in Budget 2026-27
Salaried Class Relief
- ✅ 600K-1.2M: Rate cut from 2.5% to 1%
- ✅ 1.2M-2.2M: Rate cut from 15% to 11%
- ✅ 2.2M-3.2M: Rate cut from 25% to 23%
- ✅ 3.2M-4.1M: Rate cut from 30% to 25%
- ✅ Above 4.1M: Rate cut from 35% to 30%
- ✅ Surcharge completely abolished
Non-Salaried Increase
- ❌ Maximum rate increased to 45%
- ❌ AOP rates also increased
- ❌ More burden on undocumented income
- ✅ Retailers: 1% fixed tax on sales
- ✅ Property WHT filer: reduced to 1.25%
- ✅ Export tax: reduced to 1.25%
Calculate Your Tax Now
Use updated 2026-27 slabs to calculate your exact salary tax and take-home pay.
Understanding Pakistan's Progressive Income Tax System 2026-27
Pakistan uses a progressive income tax system for salaried individuals, meaning your entire salary is not taxed at one flat rate. Instead, your annual income is divided into slabs, and each portion is taxed at the rate applicable to that slab only. For example, if your annual income falls in the third slab, only the income above the second slab's threshold is taxed at the higher rate — the lower portions continue to be taxed at their respective lower rates. This system ensures that lower-income earners pay proportionally less tax than higher earners.
Budget 2026-27 Salary Tax Relief — What Changed
The Finance Act 2026 introduced updated salary tax slabs as part of the government's budget relief package for salaried individuals. The tax-free threshold continues at Rs. 600,000 annual income, meaning individuals earning up to Rs. 50,000 per month pay zero income tax. For incomes above this threshold, the progressive slab rates apply with updated brackets designed to provide relief to middle-income salaried workers who have faced significant inflation pressure over recent years. The 2026-27 slabs represent the FBR's confirmed rates under the Finance Act 2026 as notified in the official gazette.
How to Calculate Your Tax Using These Slabs
To calculate your income tax using the slabs above, first determine your annual gross salary (monthly salary multiplied by 12). Then identify which slab your income falls into. Apply the fixed tax amount for that slab, then add the percentage rate on the amount exceeding the lower threshold of your slab. The result is your total annual income tax liability. Divide by 12 to get your monthly tax deduction. Your employer is required to deduct this amount at source each month under the withholding tax on salary framework. Use the TaxCalc PK Salary Tax Calculator above for instant, automatic calculation without manual computation.
Filer vs Non-Filer Salary Tax in Pakistan
For salaried individuals, the primary salary income tax rates shown in the slabs above apply equally to filers and non-filers — the slab tax itself does not differentiate. However, filer status significantly affects other withholding taxes that salaried employees encounter, including tax on bank profits, tax on property transactions, and tax on vehicle purchases. Becoming an active filer on the FBR's Active Taxpayer List (ATL) through the IRIS portal is free and reduces withholding tax rates across all these transactions, resulting in meaningful savings beyond just salary tax.
FBR Tax Slabs — Frequently Asked Questions
Are these slabs final for 2026-27? Yes — the slabs shown are based on the Finance Act 2026 as confirmed and gazetted by the FBR. They apply from July 1, 2026 onwards for tax year 2026-27. Do these slabs apply to freelancers?Freelancers earning income from foreign clients may be eligible for a reduced 1% final tax under Section 154A rather than the standard slab rates — consult the WHT calculator for freelancer-specific rates. What if my employer deducts wrong tax?You can reconcile excess or insufficient tax deductions when filing your annual income tax return through FBR IRIS, either paying the balance due or claiming a refund for excess deducted.