Tax years 2027 & 2026 · Finance Acts 2026 & 2025
Income Tax Calculator Pakistan 2026-27 & 2025-26
The short answer
For tax year 2027, taxable income up to Rs 600,000 a year is tax-free. Salaried individuals pay 1% to 35% across eight slabs; non-salaried individuals and AOPs pay 15% to 45% across six slabs, with the top rate capped at 40% for professional firms that cannot incorporate. Pension from a former employer is tax-free up to Rs 10 million and taxed at 5% on the excess. Non-salaried income above Rs 10 million also carries the section 4AB surcharge — 10% of the slab tax — while income chargeable under the salary head, including pension, is exempt. Income above Rs 150 million additionally attracts the section 4C super tax — 10% of income, reduced to 8% above Rs 500 million. Filing late or revising for 2025-26? A toggle in the calculator reproduces that year as well: six salaried slabs topping out at 35% above Rs 4.1 million, the 9% salary-head surcharge and the graduated 1%–10% super tax bands. Enter your income below — monthly or annually — to see the estimated annual and monthly tax.
Free tool · TY 2027 & TY 2026 · Finance Acts 2026 & 2025
Income tax calculator Pakistan 2026-27
Estimate federal income tax for salary, business or professional income, an association of persons, or pension — under the Finance Act 2026 slabs effective 1 July 2026. The section 4AB surcharge and the section 4C super tax are added automatically once the income crosses their thresholds. A toggle also reproduces the previous Tax Year 2026 (2025-26) under Finance Act 2025 rates for late or revised filers. It takes about five seconds — and if the result raises questions, that conversation is free too.
- Four modes: salaried, non-salaried, AOP professional firms (40% top-rate cap) and pension — monthly or annual input
- Shows slab tax, section 4AB surcharge, section 4C super tax, monthly withholding, effective and marginal rates
- Both high-income levies built in: the s. 4AB surcharge (salary exempt) and the s. 4C super tax
- Previous-year mode: 2025-26 slabs with the 9% salary surcharge and the graduated super tax bands, for late or revised filers
Salaried table applies where salary exceeds 75% of taxable income. No section 4AB surcharge (salary-head income).
Enter your annual taxable income to see the estimate.
Get an exact calculation — freeEstimate only, for Tax Year 2027 (1 July 2026 – 30 June 2027). Includes the section 4AB surcharge for non-salaried income (salary-head income, including pension, is exempt) and the section 4C super tax. Excludes tax credits, Zakat, provincial taxes and other levies. Confirm with a qualified consultant before acting.
Salaried tax slabs 2026-27 (Tax Year 2027)
These slabs apply where salary exceeds 75% of taxable income. They took effect on 1 July 2026 under the Finance Act 2026: the maximum rate stays 35%, while the three highest brackets were reduced from the previous 23%, 30% and 35% bands to 20%, 25% and 29%, and two new slabs were added at the top.
| Annual taxable income | Fixed amount | Rate on excess |
|---|---|---|
| Up to Rs 600,000 | — | 0% |
| Rs 600,001 – Rs 1,200,000 | — | 1% of amount above Rs 600,000 |
| Rs 1,200,001 – Rs 2,200,000 | Rs 6,000 | 11% of amount above Rs 1,200,000 |
| Rs 2,200,001 – Rs 3,200,000 | Rs 116,000 | 20% of amount above Rs 2,200,000 |
| Rs 3,200,001 – Rs 4,100,000 | Rs 316,000 | 25% of amount above Rs 3,200,000 |
| Rs 4,100,001 – Rs 5,600,000 | Rs 541,000 | 29% of amount above Rs 4,100,000 |
| Rs 5,600,001 – Rs 7,000,000 | Rs 976,000 | 32% of amount above Rs 5,600,000 |
| Above Rs 7,000,000 | Rs 1,424,000 | 35% of amount above Rs 7,000,000 |
Salaried tax slabs 2025-26 (Tax Year 2026)
For late or revised filers: these were the salaried slabs for tax year 2026 (1 July 2025 – 30 June 2026) under the Finance Act 2025 — six slabs, with the top rate of 35% applying above Rs 4.1 million. The Finance Act 2026 kept the lower slabs, cut the 23% and 30% bands to 20% and 25%, and added two new slabs at the top.
| Annual taxable income | Fixed amount | Rate on excess |
|---|---|---|
| Up to Rs 600,000 | — | 0% |
| Rs 600,001 – Rs 1,200,000 | — | 1% of amount above Rs 600,000 |
| Rs 1,200,001 – Rs 2,200,000 | Rs 6,000 | 11% of amount above Rs 1,200,000 |
| Rs 2,200,001 – Rs 3,200,000 | Rs 116,000 | 23% of amount above Rs 2,200,000 |
| Rs 3,200,001 – Rs 4,100,000 | Rs 346,000 | 30% of amount above Rs 3,200,000 |
| Above Rs 4,100,000 | Rs 616,000 | 35% of amount above Rs 4,100,000 |
Source: Finance Act 2025 (Pakistan), First Schedule, Part I — Division I, effective 1 July 2025 (tax year 2026). Tax equals the fixed amount plus the rate applied to the income above each slab's lower limit. In tax year 2026 the section 4AB surcharge applied at 9% of slab tax for salary-head income (including pension) and 10% for non-salaried income above Rs 10 million, and the section 4C super tax followed the graduated bands from 1% above Rs 150 million to 10% above Rs 500 million; credits, Zakat and provincial taxes are excluded.
Non-salaried individuals and AOPs used exactly the same slab table in 2025-26 as in 2026-27, and the 40% top-rate cap for professional firms prohibited from incorporating already applied. Two rules did differ: the section 4AB surcharge was payable by salaried taxpayers at 9% of the slab tax above Rs 10 million (withdrawn for salary-head income only from tax year 2027), and the section 4C super tax followed the graduated bands shown below. Example — a salaried individual with Rs 15,000,000 of taxable income in 2025-26 paid Rs 4,431,000 of slab tax plus Rs 398,790 of surcharge: Rs 4,829,790 in total, against Rs 4,224,000 with no surcharge in 2026-27.
Non-salaried tax slabs 2026-27 (individuals & AOPs)
These slabs apply to business, professional and other non-salary income, and to associations of persons. The maximum rate remains 45%.
| Annual taxable income | Fixed amount | Rate on excess |
|---|---|---|
| Up to Rs 600,000 | — | 0% |
| Rs 600,001 – Rs 1,200,000 | — | 15% of amount above Rs 600,000 |
| Rs 1,200,001 – Rs 1,600,000 | Rs 90,000 | 20% of amount above Rs 1,200,000 |
| Rs 1,600,001 – Rs 3,200,000 | Rs 170,000 | 30% of amount above Rs 1,600,000 |
| Rs 3,200,001 – Rs 5,600,000 | Rs 650,000 | 40% of amount above Rs 3,200,000 |
| Above Rs 5,600,000 | Rs 1,610,000 | 45% of amount above Rs 5,600,000 |
Proviso: where an association of persons is a professional firm prohibited from incorporating by any law or the rules of the body regulating their profession, the 45% rate is capped at 40% — the slab above Rs 5,600,000 becomes Rs 650,000 plus 40% of the amount above Rs 3,200,000.
Pension tax rates 2026-27
Pension received from a former employer is taxed under its own schedule, separately from any other income the pensioner has.
| Pension received in the year | Fixed amount | Rate on excess |
|---|---|---|
| Up to Rs 10,000,000 | — | 0% |
| Above Rs 10,000,000 | — | 5% of amount above Rs 10,000,000 |
Super tax on high incomes 2026-27 (section 4C)
In addition to slab tax, every high earning person pays a super tax on the whole of their income. The Finance Act 2026 abolished the super tax for income up to Rs 150 million (the old 1% to 7.5% bands), set 10% for income above Rs 150 million, and reduced the rate to 8% for income above Rs 500 million. Banks, oil and gas exploration companies and fertiliser sellers follow a separate schedule.
| Income in the tax year | Super tax rate |
|---|---|
| Up to Rs 150,000,000 | No super tax |
| Above Rs 150,000,000 (up to Rs 500,000,000) | 10% of the whole income |
| Above Rs 500,000,000 | 8% of the whole income |
Source: Finance Act 2026 (Pakistan), First Schedule, Part I — Division I, effective 1 July 2026 (tax year 2027). Tax equals the fixed amount plus the rate applied to the income above each slab's lower limit. The section 4AB surcharge (non-salaried income above Rs 10 million) and the section 4C super tax are added on top where applicable; credits, Zakat and provincial taxes are excluded.
Super tax bands 2025-26 (section 4C, Tax Year 2026)
In 2025-26 the section 4C super tax ran in graduated bands between Rs 150 million and Rs 500 million before reaching 10% — the Finance Act 2026 replaced them with the flat 10%-above-Rs-150-million rule shown above. As before, the rate applies to the whole of the income.
| Income in the tax year | Super tax rate |
|---|---|
| Up to Rs 150,000,000 | No super tax |
| Above Rs 150,000,000 (up to Rs 200,000,000) | 1% of the whole income |
| Above Rs 200,000,000 (up to Rs 250,000,000) | 1.5% of the whole income |
| Above Rs 250,000,000 (up to Rs 300,000,000) | 2.5% of the whole income |
| Above Rs 300,000,000 (up to Rs 350,000,000) | 3.5% of the whole income |
| Above Rs 350,000,000 (up to Rs 400,000,000) | 5.5% of the whole income |
| Above Rs 400,000,000 (up to Rs 500,000,000) | 7.5% of the whole income |
| Above Rs 500,000,000 | 10% of the whole income |
Source: Finance Act 2025 (Pakistan), First Schedule, Part I — Division I, effective 1 July 2025 (tax year 2026). Tax equals the fixed amount plus the rate applied to the income above each slab's lower limit. In tax year 2026 the section 4AB surcharge applied at 9% of slab tax for salary-head income (including pension) and 10% for non-salaried income above Rs 10 million, and the section 4C super tax followed the graduated bands from 1% above Rs 150 million to 10% above Rs 500 million; credits, Zakat and provincial taxes are excluded.
Surcharge on high income 2026-27 (section 4AB)
Introduced by the Finance Act 2024 and retained by the Finance Act 2026 for non-salaried taxpayers, the section 4AB surcharge is 10% of the income tax imposed under Division I of Part I of the First Schedule — that is, 10% of the slab tax only, before the section 4C super tax.
| Item | Rule |
|---|---|
| Who pays | Every individual and association of persons |
| Threshold | Taxable income exceeds Rs 10,000,000 |
| Rate | 10% of the slab tax imposed under Division I of Part I of the First Schedule |
| Exemption | No surcharge for an individual deriving income chargeable under the head “Salary” — which covers pension from a former employer |
On Rs 15,000,000 of business income, the Rs 5,840,000 slab tax attracts Rs 584,000 of surcharge; a salaried individual at the same income pays none. Mixed earners should note the proviso is broad — an individual with any salary-head income may fall within the exemption, so applicability is worth confirming before relying on the estimate.
Which slab table applies to you?
Start with the 75% rule: if income chargeable under the head “salary” exceeds 75% of your total taxable income, the salaried table applies to the whole amount. Everyone else — business owners, professionals, freelancers and landlords — is taxed on the non-salaried table, which starts at 15% instead of 1%.
Unincorporated professional practices taxed as an AOP get the 40% top-rate cap, and pension from a former employer follows its own schedule regardless of what else you earn. Mixed income is the trap: a consultant earning Rs 2.5 million with 60% salary and 40% fees pays the non-salaried rates on everything, which is why income characterisation is worth reviewing before you file.
Worked examples (Tax Year 2027)
Salaried individual, taxable income Rs 2,500,000
Slab 4: Rs 116,000 + 20% × (Rs 2,500,000 − Rs 2,200,000) = Rs 176,000 a year — about Rs 14,667 a month withheld.
Salaried individual, taxable income Rs 8,000,000
Top slab: Rs 1,424,000 + 35% × (Rs 8,000,000 − Rs 7,000,000) = Rs 1,774,000 a year.
Non-salaried individual, taxable income Rs 4,000,000
Slab 5: Rs 650,000 + 40% × (Rs 4,000,000 − Rs 3,200,000) = Rs 970,000 a year.
AOP that is a professional firm, income Rs 8,000,000
Rs 650,000 + 40% × (Rs 8,000,000 − Rs 3,200,000) = Rs 2,570,000 — Rs 120,000 less than the standard AOP table (Rs 2,690,000), because the proviso caps the top rate at 40%.
Pensioner, pension Rs 12,000,000
0% on the first Rs 10,000,000 + 5% × (Rs 12,000,000 − Rs 10,000,000) = Rs 100,000 a year.
Non-salaried individual, taxable income Rs 15,000,000
Slab tax: Rs 1,610,000 + 45% × (Rs 15,000,000 − Rs 5,600,000) = Rs 5,840,000. Section 4AB surcharge: 10% × Rs 5,840,000 = Rs 584,000. Total Rs 6,424,000 — a salaried individual at the same income pays no surcharge.
How income tax is calculated in Pakistan
Start with your total annual receipts for each income head, subtract exempt items and allowable deductions to reach taxable income, then apply the slab schedule above. Employees have this done for them: the employer computes the annual tax and withholds roughly one-twelfth from each monthly payslip under section 149 of the Income Tax Ordinance, 2001.
The withholding is adjustable, not final. When you file your annual return, credits for donations, pension contributions and Zakat reduce the liability, and any excess withheld comes back as a refund. This is why people with simple income still benefit from filing — the return is where the money comes back.
Frequently asked questions
How is income tax calculated on salary in Pakistan?
Your employer totals your annual taxable salary (salary minus exempt items), then applies the salaried slab schedule: a fixed amount plus the marginal rate on the income above the slab's lower limit. The tax is withheld monthly from your payslip under section 149 of the Income Tax Ordinance, 2001, and settled when you file your annual return. For tax year 2027 the salaried slabs run from 1% above Rs 600,000 to 35% above Rs 7,000,000.
Can I calculate tax on my monthly salary?
Yes. Switch the input to Monthly and enter your pay per month — the calculator annualises it (× 12) against the Tax Year 2027 slabs and shows the annual tax, the approximate monthly withholding and your after-tax take-home pay. Example: a monthly salary of Rs 150,000 (Rs 1.8 million a year) carries Rs 72,000 of annual tax for a salaried individual — about Rs 6,000 a month, leaving Rs 144,000 take-home.
What is the tax-free income limit in Pakistan for 2026-27?
For tax year 2027 (1 July 2026 – 30 June 2027), taxable income up to Rs 600,000 a year — about Rs 50,000 a month — carries no federal income tax, for salaried and non-salaried individuals alike. Above that, salaried rates start at 1% and non-salaried rates at 15%. Pension from a former employer has its own rule: tax-free up to Rs 10 million a year.
I have both salary and business income — which slab table applies?
If salary exceeds 75% of your total taxable income, the salaried table applies to the whole amount; otherwise the non-salaried table applies. Mixed earners below that threshold face the non-salaried slabs, which start at 15% instead of 1% — so how income is characterised matters as much as how much you earn.
How is pension taxed in Pakistan for 2026-27?
Pension received from a former employer is taxed under its own two-line schedule introduced with the Finance Act 2025 rates: 0% on the first Rs 10 million received in a tax year and 5% only on the amount above Rs 10 million. Most pensioners therefore pay no federal income tax on pension income at all.
What is the super tax on high incomes (section 4C)?
Alongside normal slab tax, the Finance Act 2026 charges a super tax on high income persons: no super tax up to Rs 150 million of income, 10% of the whole income above Rs 150 million, and 8% of the whole income above Rs 500 million. Banks, oil and gas exploration companies and fertiliser sellers follow a separate schedule. The pre-2026 bands (1% to 7.5% on income between Rs 150 million and Rs 500 million) were abolished.
What were the tax slabs for 2025-26 (Tax Year 2026)?
For salaried individuals, tax year 2026 (1 July 2025 – 30 June 2026) had six slabs: 0% up to Rs 600,000; 1% up to Rs 1.2 million; 11% up to Rs 2.2 million; 23% up to Rs 3.2 million; 30% up to Rs 4.1 million; and 35% above Rs 4.1 million. Non-salaried slabs were the same as today, and the 40% professional-firm cap already applied. The section 4AB surcharge still applied above Rs 10 million — 9% of slab tax for salary-head income (including pension) and 10% for non-salaried income — and the section 4C super tax ran in graduated bands from 1% above Rs 150 million up to 7.5% between Rs 400 and 500 million and 10% above Rs 500 million.
What is the surcharge under section 4AB?
A 10% surcharge on the slab tax, payable by every individual and association of persons whose taxable income exceeds Rs 10 million. Introduced by the Finance Act 2024, it was withdrawn for salary-head income by the Finance Act 2026: an individual deriving income chargeable under the head 'Salary' pays no surcharge — which also covers pension from a former employer. It continues for non-salaried individuals and AOPs: on Rs 15 million of business income, the Rs 5,840,000 slab tax attracts Rs 584,000 of surcharge. The base is the slab tax only, so the section 4C super tax is not part of it.
Are professional firms taxed differently from other businesses?
Yes, if they operate as an association of persons (AOP). Where a professional firm is prohibited from incorporating by any law or the rules of its regulating body — such as law or chartered accountancy practices — the top rate of 45% is capped at 40% on income above Rs 5.6 million. On Rs 8 million of income that saves Rs 120,000 a year versus the standard AOP table.
Is this calculator the final tax I will pay?
No. It estimates federal slab tax, the section 4AB surcharge for non-salaried income above Rs 10 million, and the section 4C super tax. It excludes tax credits for donations and pension contributions, Zakat deductions, provincial taxes and any other levies. Your final liability is computed in your annual return — we review those items free of charge if you send us your documents.
How can I legally reduce my income tax in Pakistan?
Common legal levers include: claiming tax credit for eligible charitable donations, contributing to an approved pension fund, structuring permissible allowances correctly, deducting Zakat paid, and — for businesses — choosing the right legal form, since AOP professional firms enjoy the 40% top-rate cap. Filing on time as a filer also matters, because non-filers pay higher rates on many transactions. A short consultation usually finds at least one overlooked relief.
What is the difference between a filer and a non-filer?
A filer is on FBR's Active Taxpayer List because they file annual returns. Filers pay lower withholding tax on banking, vehicles, property and other transactions; non-filers pay significantly higher rates. For most salaried people, filing a return costs nothing and saves far more than the effort involved.
Want your actual tax computed — and filed?
Our tax consultants review your salary structure or business accounts free of charge, compute the exact figure including surcharges and credits, and file your return for a fixed fee quoted in writing.