Salary Tax ยท Tax Year 2027

Tax on Salary in Pakistan 2026-27: Monthly Table and Examples

How much income tax is deducted from your salary each month under the 2026-27 slabs, how to work it out yourself, and why your payslip may differ.

Short answer: salaries up to Rs 50,000 a month are tax-free in 2026-27. A Rs 100,000 salary pays Rs 500 a month, Rs 150,000 pays Rs 6,000, and Rs 300,000 pays Rs 34,667.

Monthly salary tax table 2026-27

Tax for the full monthly salary treated as taxable (no tax-free allowances), with the 2025-26 figure for comparison. "After tax" is before EOBI, provident fund or other deductions.

Monthly salaryTax / monthAfter taxEffective rate2025-26 tax / month
Rs 50,000Rs 0Rs 50,0000.0%Rs 0
Rs 60,000Rs 100Rs 59,9000.2%Rs 100
Rs 70,000Rs 200Rs 69,8000.3%Rs 200
Rs 80,000Rs 300Rs 79,7000.4%Rs 300
Rs 90,000Rs 400Rs 89,6000.4%Rs 400
Rs 100,000Rs 500Rs 99,5000.5%Rs 500
Rs 125,000Rs 3,250Rs 121,7502.6%Rs 3,250
Rs 150,000Rs 6,000Rs 144,0004.0%Rs 6,000
Rs 175,000Rs 8,750Rs 166,2505.0%Rs 8,750
Rs 200,000Rs 13,000Rs 187,0006.5%Rs 13,500
Rs 250,000Rs 23,000Rs 227,0009.2%Rs 25,000
Rs 300,000Rs 34,667Rs 265,33311.6%Rs 38,833
Rs 350,000Rs 47,500Rs 302,50013.6%Rs 54,250
Rs 400,000Rs 62,000Rs 338,00015.5%Rs 71,750
Rs 450,000Rs 76,500Rs 373,50017.0%Rs 89,250
Rs 500,000Rs 92,000Rs 408,00018.4%Rs 106,750
Rs 600,000Rs 124,500Rs 475,50020.8%Rs 141,750
Rs 750,000Rs 177,000Rs 573,00023.6%Rs 194,250
Rs 1,000,000Rs 264,500Rs 735,50026.5%Rs 307,108

How to calculate salary tax step by step

  1. Find your taxable monthly salary. Start from gross pay and remove tax-free items โ€” mainly medical allowance up to 10% of basic salary.
  2. Multiply by 12 to get annual taxable salary.
  3. Find your slab in the 2026-27 salaried table.
  4. Apply the formula: fixed amount + slab rate ร— (annual salary โˆ’ slab starting point).
  5. Divide by 12 for the monthly deduction.

Monthly tax = [fixed amount + rate ร— (annual salary โˆ’ slab start)] รท 12

Worked examples

Rs 80,000 a month

Annual salary Rs 960,000 is in the 1% slab: 1% ร— (960,000 โˆ’ 600,000) = Rs 3,600 a year, or Rs 300 a month.

Rs 150,000 a month with Rs 10,000 medical allowance

Suppose basic salary is Rs 100,000, so medical allowance is tax-free up to Rs 10,000. Taxable salary is Rs 140,000 a month, or Rs 1,680,000 a year, in the 11% slab: Rs 6,000 + 11% ร— (1,680,000 โˆ’ 1,200,000) = Rs 58,800 a year, or Rs 4,900 a month โ€” Rs 1,100 a month less than if the whole Rs 150,000 were taxable.

Rs 500,000 a month

Annual salary Rs 6,000,000 is in the new 32% slab: Rs 976,000 + 32% ร— (6,000,000 โˆ’ 5,600,000) = Rs 1,104,000 a year, or Rs 92,000 a month. Under last year's slabs this salary paid Rs 106,750 a month.

Why your employer's figure may be different

  • Bonuses and increments: the employer re-estimates your yearly salary and spreads the extra tax over the remaining months.
  • Joining or leaving mid-year: tax is based on the salary you'll actually receive in the tax year, and your new employer needs your previous employer's tax certificate.
  • Tax credits and adjustments: you can ask your employer to account for certain credits (such as approved pension fund contributions) or for tax already paid elsewhere.

At the end of the year your employer gives you a tax deduction certificate. Use it when you file your return on IRIS; any over-deduction can be claimed as a refund.

FAQ

Salary tax questions

How much tax is deducted from a Rs 100,000 salary in Pakistan?
Rs 500 a month in 2026-27. Rs 100,000 a month is Rs 1.2 million a year; tax is 1% of the Rs 600,000 above the tax-free limit, which is Rs 6,000 a year.
How much tax is deducted from a Rs 200,000 salary?
Rs 13,000 a month. The yearly salary of Rs 2.4m is in the 20% band: Rs 116,000 + 20% ร— (2,400,000 โˆ’ 2,200,000) = Rs 156,000 a year.
Is a Rs 50,000 monthly salary taxable?
No. Rs 50,000 a month is Rs 600,000 a year, which is the tax-free limit for 2026-27.
Do filers and non-filers pay different tax on salary?
No. Tax on salary is worked out from the same slabs for everyone. Filer status matters for other withholding taxes โ€” bank profit, property, cash withdrawals โ€” and you still need to file a return to stay on the Active Taxpayers List.
Why does my payslip show a different tax figure?
Employers estimate tax for the whole year and spread it over the remaining months, so bonuses, increments, arrears or joining mid-year change the monthly figure. Tax-free medical allowance (up to 10% of basic) and tax credits also reduce it. The yearly total should match once all salary for the year is counted.

Last reviewed: 3 October 2026

Sources

  • Finance Act 2026 โ€” salaried rates (First Schedule, Part I, Division I)
  • Income Tax Ordinance 2001, Section 149 (deduction from salary)

Estimates for planning only โ€” not tax or religious advice. See our disclaimer, and tell us if you spot an error.