Pakistan Salary Tax Calculator (2026-27)
In Pakistan salaried people pay income tax by slab on their yearly salary: nil up to Rs 600,000, then 1%, 11%, 20%, 25%, 29% and 32% up to Rs 7 million, and 35% above, for tax year 2027 (from 1 July 2026). The 9% surcharge on high earners was withdrawn. EOBI takes 1% of the minimum wage.
| Yearly | Monthly |
|---|
· Calculated with AiStaffo
Tax and deduction rules (2026-27 (tax year 2027))
| Up to Rs 600,000 | 0% |
|---|---|
| Rs 600,001 – 1,200,000 | 1% of the amount over Rs 600,000 |
| Rs 1,200,001 – 2,200,000 | Rs 6,000 + 11% of the amount over Rs 1,200,000 |
| Rs 2,200,001 – 3,200,000 | Rs 116,000 + 20% of the amount over Rs 2,200,000 |
| Rs 3,200,001 – 4,100,000 | Rs 316,000 + 25% of the amount over Rs 3,200,000 |
| Rs 4,100,001 – 5,600,000 | Rs 541,000 + 29% of the amount over Rs 4,100,000 |
| Rs 5,600,001 – 7,000,000 | Rs 976,000 + 32% of the amount over Rs 5,600,000 |
| Above Rs 7,000,000 | Rs 1,424,000 + 35% of the amount over Rs 7,000,000 |
| Surcharge | The 9% surcharge on salaried income above Rs 10 million (section 4AB) was withdrawn from tax year 2027. |
| EOBI | Employee 1% and employer 5% of the minimum wage: Rs 400 and Rs 2,000 a month on Rs 40,000. |
Worked example
Ali earns Rs 250,000 a month (Rs 3,000,000 a year). Tax is Rs 116,000 + 20% of the Rs 800,000 above Rs 2,200,000 = Rs 276,000 a year, or Rs 23,000 a month. EOBI takes Rs 400 a month.
Take-home pay: Rs 2,719,200 a year, or Rs 226,600 a month. Under the tax year 2026 slabs the same salary paid Rs 300,000 tax, so Ali saves Rs 24,000 a year.
What changed on 1 July 2026
The Finance Act 2026 lowered the rates for middle and upper salaries: the 23% slab became 20%, the 30% slab became 25%, and new 29% and 32% slabs were added before the top 35% rate, which now starts at Rs 7 million. The 9% surcharge on salaried income above Rs 10 million was removed. Salaries up to Rs 600,000 a year remain tax-free.
For employers
Running payroll by hand (tax tables, contributions, payslips, filings) is routine work that AI workers now handle with almost no staff time. See what an employee really costs you, or book a free automation audit for your payroll.
Please note: figures follow the published 2026-27 (tax year 2027) rates as checked on 21 October 2026 for a resident employee in the standard case. Tax is worked on the whole salary as taxable; tax-free allowances (for example medical allowance up to 10% of basic in some cases), provident fund, Zakat, tax credits and other income are not included. EOBI uses Rs 40,000 as the minimum wage; your employer may use a different notified figure. This is a guide, not tax advice; your payslip can differ because of tax codes, benefits and timing.
Sources
Questions people ask
How much tax on Rs 100,000 monthly salary in 2026-27?
How much tax on Rs 200,000 monthly salary?
Is there a surcharge on high salaries in 2026-27?
What is the tax-free salary limit in Pakistan?
How much is EOBI deducted?
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