Tax year 2027 covers salary for 1 July 2026 to 30 June 2027. Section 74 of the Income Tax Ordinance names each tax year after the calendar year in which its closing 30 June falls, which is why fiscal 2026-27 pay is taxed under the tax year 2027 table. The Finance Act 2026 replaced that table, and FBR explained the new rates in Circular No. 2 of 2026-27, dated 8 September 2026.
Below are the eight slabs, the shortcut hidden in FBR's wording, and five salaries from Rs 75,000 to Rs 800,000 a month worked through. Every figure was checked with Calculation Guide's Pakistan Salary Tax Calculator.
The eight salaried slabs for tax year 2027
| Slab | Annual taxable income | Tax as FBR states it | Rate on the slice |
|---|---|---|---|
| 1 | Up to Rs 600,000 | 0% | 0% |
| 2 | Rs 600,001 to 1,200,000 | 1% of the amount over Rs 600,000 | 1% |
| 3 | Rs 1,200,001 to 2,200,000 | Rs 6,000 + 11% of the amount over Rs 1,200,000 | 11% |
| 4 | Rs 2,200,001 to 3,200,000 | Rs 116,000 + 20% of the amount over Rs 2,200,000 | 20% |
| 5 | Rs 3,200,001 to 4,100,000 | Rs 316,000 + 25% of the amount over Rs 3,200,000 | 25% |
| 6 | Rs 4,100,001 to 5,600,000 | Rs 541,000 + 29% of the amount over Rs 4,100,000 | 29% |
| 7 | Rs 5,600,001 to 7,000,000 | Rs 976,000 + 32% of the amount over Rs 5,600,000 | 32% |
| 8 | Above Rs 7,000,000 | Rs 1,424,000 + 35% of the amount over Rs 7,000,000 | 35% |
The fixed amount in each row is not an extra charge. It is the total tax on every slab below that row. Rs 116,000, for example, is Rs 6,000 from slab 2 plus 11% of the Rs 1,000,000 that slab 3 spans. So there are two equivalent ways to compute the tax.
The slab floor is the lower bound of the row your income falls in, such as Rs 2,200,000 for slab 4. Taxing each slice separately (0% on the first Rs 600,000, 1% on the next Rs 600,000, and so on) and adding the results gives the same figure; the calculator prints that slice-by-slice receipt.
Paragraph 8 of the same circular records a removal. Salaried individuals with taxable income above Rs 10 million no longer pay the 9% surcharge under section 4AB. The 10% surcharge on other individuals and associations of persons continues, so this table is the whole story only for income chargeable under the head Salary.
Five monthly salaries worked through
Each case starts from monthly taxable salary, multiplies it by 12 because FBR's thresholds are annual, and applies the shortcut formula.
| Monthly taxable salary | Annual | Slab reached | Working | Annual tax | Monthly tax | Monthly after tax |
|---|---|---|---|---|---|---|
| Rs 75,000 | Rs 900,000 | 2 (1%) | 1% × 300,000 | Rs 3,000 | Rs 250 | Rs 74,750 |
| Rs 150,000 | Rs 1,800,000 | 3 (11%) | 6,000 + 11% × 600,000 | Rs 72,000 | Rs 6,000 | Rs 144,000 |
| Rs 250,000 | Rs 3,000,000 | 4 (20%) | 116,000 + 20% × 800,000 | Rs 276,000 | Rs 23,000 | Rs 227,000 |
| Rs 450,000 | Rs 5,400,000 | 6 (29%) | 541,000 + 29% × 1,300,000 | Rs 918,000 | Rs 76,500 | Rs 373,500 |
| Rs 800,000 | Rs 9,600,000 | 8 (35%) | 1,424,000 + 35% × 2,600,000 | Rs 2,334,000 | Rs 194,500 | Rs 605,500 |
The bars climb far faster than the salaries do. Pay rises a little under elevenfold from the first case to the last, while tax rises from Rs 3,000 to Rs 2,334,000. Every extra rupee further up the table meets a higher rate, and the zero-rate first Rs 600,000 matters less and less as income grows.
Three numbers that are easy to mix up
- Annual tax is what the slab table defines. Every monthly figure is derived from it by dividing by 12.
- Effective rate is annual tax divided by annual taxable salary: 4.0% at Rs 150,000 a month and 17.0% at Rs 450,000. It is the share of the whole salary taken by this tax.
- Marginal rate is the rate on the last slice: 11% and 29% for those same two salaries. It is the cost of the next rupee, not of the whole salary.
Even at Rs 800,000 a month, where the marginal rate is 35%, the effective rate is 24.3%. A move in effective rate from 4.0% to 9.2% is 5.2 percentage points, not 5.2%; percent change vs percentage points explains why that wording matters. What the marginal rate means for an increment or a bonus is worked through in how a bonus or raise affects salary tax.
Pakistan Salary Tax CalculatorEnter your own monthly or annual taxable salary to see the slab-by-slab receipt for tax year 2027.Start from taxable salary, not the offer letter
The table taxes taxable income, so the calculator asks for taxable salary. Section 12 of the Ordinance defines salary broadly: pay, wages, leave pay, overtime, bonus, commission, fees, gratuity and perquisites all count unless another provision exempts them. Your payroll office applies those exemptions, so begin from the taxable figure on your payslip or salary certificate rather than a cost-to-company number.
Two practical points follow. If your pay changes during the year, one month × 12 is only an approximation; add up the actual months and enter the annual total instead. And the monthly tax in the table is an average. Section 149 tells your employer to deduct tax at your average rate on the estimated salary for the year, after adjusting for tax credits it has evidence of, so any single month's deduction can differ from these averages when the estimate changes.
What these slab figures leave out
- Tax credits, such as those under sections 61 and 63 that section 149 lets an employer adjust, which reduce the tax actually deducted.
- Income under other heads, such as business, property or capital gains, which is taxed under its own rules and is outside this calculation.
- Pension, which has its own withholding rates under section 149(1A) in FBR's rate card.
- Later amendments. These slabs are from the Finance Act 2026 as FBR explained them in September 2026; check FBR's website for any change before you file.
Treat the five cases as a check on the arithmetic of the table. Your return and your employer's computation, which know your credits and exemptions, decide the tax actually due.