THE BUSINESS EXPLORE • PAKISTAN TAX TOOL

Tax on Salary Calculator
Pakistan 2026–2027

Estimate annual salary tax, monthly withholding and net take-home pay under the Tax Year 2027 salaried slabs introduced through Finance Act 2026.

FY 1 July 2026 – 30 June 2027Eight salaried slabsPKR calculationsOne-page PDF summary

Salary and deductions

Enter monthly recurring amounts unless a field specifically asks for an annual amount.

1Salary income
House rent, utilities, conveyance or other taxable cash allowances.
Arrears, commissions or other taxable salary items.
Enter only amounts confirmed exempt under applicable law and evidence.
2Tax adjustments
Enter the tax amount, not the investment or donation amount.
Salary tax already withheld or other adjustable tax confirmed against salary liability.
3Other payroll deductions
The calculator is ready. Enter the salary details and select Calculate Salary Tax.

Step-by-Step Salary Calculation

The complete calculation updates after selecting Calculate Salary Tax.

1
Recurring salary(Basic salary + taxable allowances) × salary months
PKR 0
2
Annual taxable additionsBonus + arrears, commissions or other taxable salary
PKR 0
3
Annual gross salaryRecurring salary + annual taxable additions
PKR 0
4
Less: confirmed exempt salaryLimited to the gross salary entered
PKR 0
5
Annual taxable salaryGross salary − exempt salary
PKR 0
6
Gross tax under applicable slabTax Year 2027 slab formula
PKR 0
7
Less: eligible tax credits / rebatesLimited to gross calculated tax
PKR 0
8
Tax after creditsGross tax − eligible credits
PKR 0
9
Less: tax already deducted / paidLimited to tax after credits
PKR 0
10
Remaining annual taxTax after credits − tax already paid
PKR 0
11
Annual payroll deductionsProvident fund, EOBI, insurance, loan, pension and other deductions
PKR 0
12
Estimated annual net salaryGross salary − remaining tax − annual payroll deductions
PKR 0
Enter salary details and calculate to display the applied slab formula.

How the calculator works

  • Recurring basic salary and taxable allowances are annualised for the entered salary months.
  • Annual bonus and other taxable salary are added.
  • Only the confirmed exempt salary amount entered by the user is removed from taxable salary.
  • The Tax Year 2027 slab formula is applied to annual taxable salary.
  • Entered tax credits and tax already paid reduce the remaining tax, subject to the calculator limits.
  • Provident fund, EOBI, insurance, loan and other payroll deductions reduce net take-home pay.

Tax deductions versus payroll deductions

Tax adjustments can reduce the tax payable only where an exemption, rebate, credit or adjustable payment is legally available and properly supported.

Payroll deductions such as loan recovery or employee contributions normally reduce cash take-home pay. Entering them does not automatically reduce taxable salary.

The calculator keeps these two categories separate to avoid understating salary tax.

Pakistan salaried tax slabs — Tax Year 2027 / FY 2026–2027

SlabAnnual taxable salaryTax calculation
1Up to PKR 600,000Nil
2PKR 600,001 – 1,200,0001% of amount exceeding PKR 600,000
3PKR 1,200,001 – 2,200,000PKR 6,000 + 11% of amount exceeding PKR 1,200,000
4PKR 2,200,001 – 3,200,000PKR 116,000 + 20% of amount exceeding PKR 2,200,000
5PKR 3,200,001 – 4,100,000PKR 316,000 + 25% of amount exceeding PKR 3,200,000
6PKR 4,100,001 – 5,600,000PKR 541,000 + 29% of amount exceeding PKR 4,100,000
7PKR 5,600,001 – 7,000,000PKR 976,000 + 32% of amount exceeding PKR 5,600,000
8Above PKR 7,000,000PKR 1,424,000 + 35% of amount exceeding PKR 7,000,000
Important: This is an educational payroll estimate for a person whose income is treated under the salaried schedule. Benefits, perquisites, employer-provided assets, stock awards, arrears, exemptions, credits, multiple employers, non-salary income and employer annualisation can change the statutory result. The original law and FBR guidance prevail.

Pakistan Salary Tax Summary 2026–27

Tax Year 2027 • The Business Explore

Estimated net monthly salaryPKR 0
Annual gross salaryPKR 0
Annual taxable salaryPKR 0
Annual tax after creditsPKR 0
Tax already paidPKR 0
Remaining annual taxPKR 0
Annual payroll deductionsPKR 0
Estimated annual net salaryPKR 0
Applied slab–
TY 2027 slabAnnual taxable salaryFormula
1Up to 600,000Nil
2600,001–1,200,0001% above 600,000
31,200,001–2,200,0006,000 + 11% above 1,200,000
42,200,001–3,200,000116,000 + 20% above 2,200,000
53,200,001–4,100,000316,000 + 25% above 3,200,000
64,100,001–5,600,000541,000 + 29% above 4,100,000
75,600,001–7,000,000976,000 + 32% above 5,600,000
8Above 7,000,0001,424,000 + 35% above 7,000,000
Educational estimate only. Payroll deductions are separate from statutory deductions from taxable salary. Confirm exemptions, credits, adjustable tax and perquisites under the current law.
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