Tax Calculator - The Business Explore

Tax Year 2027

Pakistan Salary Income Tax Calculator 2026‑27

For salaried individuals · 1 July 2026 – 30 June 2027 · Slab rates as per the Finance Act 2026, with allowable deductions, exemptions and tax credits built in.

1. Salary details

Enter salary as

Gross salary (PKR)

Total cash salary including all allowances and bonuses.

Basic salary — same basis as above (PKR)

Needed only to auto-compute the medical allowance exemption (10% of basic).

Annual bonus / arrears not in the above (PKR)

Added once to annual income, not multiplied by 12.

2. Exemptions & deductions from income (reduce taxable salary)

Medical allowance received — annual (PKR)

Exempt up to 10% of basic salary; the excess is taxed automatically.

Employer provident fund contribution — annual (PKR)

Recognised PF: exempt up to the lower of 10% of (basic + DA) or Rs 150,000.

Zakat deducted at source — annual (PKR)

Deductible from taxable income under Section 60.

Approved gratuity / commutation exempt (PKR)

Enter only the portion that qualifies as exempt.

Other exempt allowances — annual (PKR)

e.g. exempt pension, specified perquisites, foreign-source exempt salary.

Other allowable deductions — annual (PKR)

Any further statutory deductible allowance available to you.

3. Tax credits (reduce the tax itself)

Charitable donations to approved institutions (PKR)

Credit u/s 61 — eligible amount capped at 30% of taxable income.

Approved pension fund / VPS contribution (PKR)

Credit u/s 63 — eligible amount capped at 20% of taxable income.

Tax already deducted / paid — annual (PKR)

Salary withholding u/s 149, advance tax on mobile, vehicle, banking, etc.

Other tax credits (PKR)

Any other credit directly reducing tax payable.

Taxable income—

Annual tax—

Monthly tax—

Monthly take‑home—

A. Computation of taxable income

Particulars	Amount (PKR)

B. Slab-wise tax computation

Annual income slab (PKR)	Rate	Income falling in slab	Tax

C. Tax payable & take-home summary

Particulars	Annual (PKR)	Monthly (PKR)

Effective tax rate: — of taxable income | On gross salary: —

D. Salary tax slabs for Tax Year 2027 — for your verification

Annual taxable income (PKR)	Monthly equivalent (PKR)	Rate	Tax payable

Notes for visitors:
1. These slabs apply where income under the head “Salary” exceeds 75% of total taxable income; otherwise the non-salaried / AOP rates apply.
2. The 9% surcharge previously charged on salaried income above PKR 10 million stands abolished, so no surcharge is added above. A 10% surcharge continues to apply to business individuals and AOPs with taxable income above PKR 10 million.
3. The tax-free threshold remains PKR 600,000 per year (PKR 50,000 per month).
4. Caps on exemptions and tax credits are applied automatically, and credits are restricted to the tax actually payable — a credit can never create a refund on its own.
5. This calculator is provided by The Business Explore for general guidance and planning only. It is not tax advice. Please confirm your final position with your tax consultant or the FBR before filing.