How FBR's tax year 2027 slabs tax each slice of salary
Pakistan's tax year 2027 salaried-person table taxes slices of annual taxable income at different rates. Enter a payroll-confirmed taxable figure, or enter gross salary and a known exempt amount for the same period. Monthly inputs are annualized before applying the slabs. The result separates annual tax, the monthly equivalent and the amount left after this one tax.
FBR's 2026–27 circular publishes eight annual taxable-income bands for salaried persons. A monthly number is first multiplied by twelve because the source table is annual. The first 600,000 PKR has a zero rate; later portions enter progressively higher brackets. The displayed marginal rate is the rate on the final slice only. It is not the effective tax rate on all earnings. You can use a payroll-confirmed taxable figure directly. The gross helper subtracts only an exempt amount you supply for the same period; it cannot decide whether an allowance, bonus or employer benefit qualifies.
The slab-by-slab receipt makes the taxable slice and tax of each reached band visible, so a visitor can inspect how an annual figure becomes a monthly equivalent without treating the top marginal rate as a flat tax.
Taxable or gross entry, period and the marginal rate
Choose whether your figure is taxable salary from payroll or gross pay with a separately confirmed exempt amount. The period choice decides how the figure reaches the annual slabs.
- Monthly or annual period
- A monthly figure is multiplied by 12 before the annual slabs are applied. Picking the wrong option is the costliest slip: 150,000 entered as annual is treated as 150,000 a year and shows no tax, while the same amount entered as monthly becomes 1,800,000 a year with 72,000 PKR of tax.
- Taxable or gross salary
- Use the taxable figure from your payroll or tax certificate when available. If you select gross, enter only an exempt amount your payroll has confirmed for the same period; the helper subtracts it before tax. It does not decide which allowances are exempt. Annual taxable amounts up to 600,000 PKR fall in the zero-rate slab.
- Marginal slab rate
- This is the rate on your last rupee, not on the whole salary. At 1,800,000 a year it is 11%, yet the 72,000 PKR of tax is 4% of salary. Raising monthly taxable pay from 150,000 to 200,000 adds 84,000 PKR of yearly tax, because part of the increase lands in the 20% slab.
- Monthly equivalent
- The headline figure is annual salary minus annual tax, divided by 12. It is an average across the year, so it will not match a payslip in a month with arrears, a bonus or a withholding adjustment. At 150,000 a month it is 144,000 PKR, with 6,000 PKR of tax in an average month.
Steps
- Choose the taxable figure from payroll, or select gross salary only if you know the exempt portion confirmed by payroll.
- Select monthly or annual and enter the amount in Pakistani rupees. Gross mode subtracts the confirmed exempt amount for the same period.
- Calculate, then inspect the taxable figure, individual slab portions and monthly equivalent. Compare them with your employer's payroll details.
Reading tip: Read the slab receipt from top to bottom. Its taxable-slice amounts add to your annual input and its individual tax amounts add to the modeled annual tax. The monthly number is an annual average, which can differ from any given payslip's withholding.
Salary decisions a slab-tax estimate informs
Inspect a salary offer
Use an already-determined taxable pay figure to see annual slab tax.
Compare monthly and annual quotes
Convert a monthly taxable number to the annual table before evaluating it.
Check a slab boundary
See how only additional income in a higher band faces its marginal rate.
Budget after modeled tax
Use the average monthly equivalent as one input to a wider payroll budget.
How the calculation works
- G / A
- G is entered salary annualized; A is annual taxable salary after subtracting a payroll-confirmed exemption in gross mode.
- floor / ceiling
- Annual bounds of each published FBR salaried-person tax-year 2027 slab.
- rateᵢ
- Published rate on income within slab i, from 0% to 35%.
- T / 12
- Summed modeled annual tax / twelve months for an average monthly equivalent.
FBR sets the slab rates. Calculation Guide supplies the annualization and presentation rules; the result does not determine exemptions, credits or other payroll deductions.
What every part means
- G / A
- G is entered salary annualized; A is annual taxable salary after subtracting a payroll-confirmed exemption in gross mode.
- floor / ceiling
- Annual bounds of each published FBR salaried-person tax-year 2027 slab.
- rateᵢ
- Published rate on income within slab i, from 0% to 35%.
- T / 12
- Summed modeled annual tax / twelve months for an average monthly equivalent.
Calculate it step by step
FBR lists annual thresholds. The optional subtraction uses only the payroll-confirmed amount entered by the visitor; monthly inputs are annualized by twelve.
For the open-ended final slab, all taxable salary above 7,000,000 PKR is in that slice.
The monthly figure is an average after modeled income tax only, not actual take-home pay.
Source-derived: the salaried-person thresholds and percentages in FBR Circular No. 2 of 2026–27, paragraph 7, summarizing the Finance Act 2026 amendment to clause (2), Division I, Part I of the First Schedule. The same circular states that the previous 9% surcharge on salaried individuals above 10 million PKR was withdrawn. Product-defined: accepting monthly or annual pay, optionally subtracting an entered payroll-confirmed exempt amount from gross pay, annualizing monthly figures by twelve, summing slab slices and displaying monthly averages. Input caps are technical safeguards, not FBR eligibility bounds.
See how Calculation Guide tests examples and handles calculation limits.
See it in practice
- Salary figure available
- Taxable salary from payroll
- Period of your salary input
- Monthly salary
- Salary for selected period
- 150000 PKR
150,000 PKR taxable monthly → A = 1,800,000. Tax = 600,000×1% + 600,000×11% = 72,000 PKR. (1,800,000−72,000)/12 = 144,000 PKR monthly after modeled income tax.
- Annual taxable salary entered or annualized1,800,000 PKR
- Modeled annual income tax72,000 PKR
Interpretation & limitations
How to read your result
For 150,000 PKR taxable salary per month, annual taxable salary is 1,800,000 PKR. Tax is 1% of the 600,000 PKR slice from 600,000 to 1,200,000 (6,000 PKR), plus 11% of the next 600,000 PKR (66,000 PKR), totaling 72,000 PKR for the year. Annual after this modeled tax is 1,728,000 PKR, or an average of 144,000 PKR per month.
Where this estimate stops
Current as of this tax-year specification; future laws or FBR clarifications can change the result. Eligibility for the salaried-person table, classification of exemptions, tax credits, reliefs, mixed income, bonuses, payroll withholding timing and non-income-tax deductions are not determined here. A monthly equivalent is not a paycheck guarantee or filing advice. Verify unusual cases against current FBR guidance or a qualified tax professional.
Frequently asked questions
01Can I enter my gross salary?
Yes, if you also know the amount payroll has confirmed as exempt for the same period. The calculator subtracts that amount before applying slabs; it does not classify allowances or benefits for you.
02Why is the highest slab rate not applied to all my salary?
Only the portion above each slab floor is multiplied by that slab's rate; lower slices keep their lower rates.
03What happens at exactly 600,000 PKR annual taxable salary?
The amount stays in the zero-rate band; modeled annual tax is zero.
04How much tax is due at exactly 1,200,000 PKR?
The modeled slab tax is 6,000 PKR from the 600,000 PKR slice taxed at 1%.
05Does the old 9% salaried surcharge still appear here?
No. FBR Circular No. 2 of 2026–27 says Finance Act 2026 withdrew that surcharge for salaried individuals.
06Why might my payslip show another deduction?
Employer withholding timing and other payroll items can differ from this annual slab-only calculation.
07Should I enter a month that included a bonus?
Not as a monthly figure. The tool multiplies a monthly entry by 12, so one bonus month would be treated as if it were paid every month. Add the bonus once to the year's other taxable salary and enter that total with the annual option.
Sources & references
Articles that use this calculator
- FBR Salary Tax Slabs for Tax Year 2027, With Five Worked SalariesFor tax year 2027, the first Rs 600,000 of annual taxable salary is untaxed and each later slice is taxed at 1% to 35%. A taxable salary of Rs 150,000 a month pays Rs 72,000 a year, an effective rate of 4%.
- Can a Raise or Bonus Lower Your Take-Home Pay in Pakistan?No. Under the tax year 2027 salaried slabs, each rate applies only to income above its slab floor, so at most 35 paisa of each extra rupee goes in this tax and the rest always adds to take-home pay.