What is the difference between effective and marginal rate?

Marginal rate is the rate on your next rupee of income (your top slab). Effective rate is total tax divided by total income — always lower because earlier income is taxed at lower rates.

Is there a surcharge on high salaries?

No. The 9.0% high-income surcharge that applied in Tax Year 2026 (on taxable income above PKR 10,000,000) was abolished for salaried individuals under Finance Act 2026, effective Tax Year 2027. Select an earlier tax year to see it applied.

Do these slabs apply to business income too?

These are the salaried-individual slabs. Business individuals/AOPs and companies have different rate structures. Use this calculator for salary income estimates.

Pakistan Income Tax Calculator 2026–27

Pakistan-focusedFormula explained

Tax Year 2027Rates reviewed: 16 June 2026Enacted lawVerify with FBR

This is the Pakistan income tax calculator for Tax Year 2027 (FY 2026–27). Enter your annual or monthly taxable income and it applies the enacted FBR salary slabs to show your annual tax, monthly tax, income after tax, and your effective and marginal rate — instantly, with the full slab build-up.

Apni salary daalein aur FBR tax, effective rate aur net salary dekhein.

Saved on this device only — no account needed.

Tax Year 2027 · FY 2026–27

Status:: Enacted — Finance Act 2026
Effective:: 1 July 2026 – 30 June 2027
Last verified by CalcuPK:: 15 July 2026

Enter income as

Annual taxable income

PKR

Taxable income is your salary after exempt allowances.

Tax year

Income tax

Annual taxPKR 156,000 — approx. 1.56 lakh

Monthly taxPKR 13,000

Income after taxPKR 2,244,000 — approx. 22.44 lakh

Effective rate6.5%

Marginal rate20.0%

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Your inputs are calculated in your browser and are not stored by CalcuPK.

Annual breakdown

Income after taxPKR 2,244,000

Income tax paidPKR 156,000

Effective tax rate

6.5%

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How to use this calculator

1Enter your taxable income (annual or monthly).
2Select the relevant tax year.
3Review your annual and monthly tax, plus effective and marginal rates.
4Compare an earlier tax year to see how much your tax changed.

Formula & how it works

For income in a slab, tax is:

Tax = fixed amount + slab rate × (income − slab threshold)

FBR salary slabs (Tax Year 2027 (Jul 2026 – Jun 2027))

PKR 0 – PKR 600,000: No tax
PKR 600,000 – PKR 1,200,000: PKR 0 + 1.0% of excess
PKR 1,200,000 – PKR 2,200,000: PKR 6,000 + 11.0% of excess
PKR 2,200,000 – PKR 3,200,000: PKR 116,000 + 20.0% of excess
PKR 3,200,000 – PKR 4,100,000: PKR 316,000 + 25.0% of excess
PKR 4,100,000 – PKR 5,600,000: PKR 541,000 + 29.0% of excess
PKR 5,600,000 – PKR 7,000,000: PKR 976,000 + 32.0% of excess
Above PKR 7,000,000: PKR 1,424,000 + 35.0% of excess

Pakistan Income Tax Calculator (Tax Year 2027)

This is the broad Pakistan tax calculator for salary income: enter an annual or monthly figure and it applies the enacted FBR slabs for Tax Year 2027 to return your income tax, income after tax, and your effective and marginal rate. Because the system is progressive, only the portion of income inside a higher band is taxed at the higher rate — a raise never reduces your take-home pay.

Which regime this uses: the calculator applies the salaried-individual slab schedule. Business individuals, AOPs and companies are taxed on different rate structures and are out of scope here.

Worked examples — annual taxable income (Tax Year 2027)

Income tax only, before provident fund, EOBI or tax credits:

Annual income tax — Tax Year 2027
Annual taxable income	Annual tax	Monthly tax	Income after tax	Effective rate
PKR 1,200,000	PKR 6,000	PKR 500	PKR 1,194,000	0.5%
PKR 2,400,000	PKR 156,000	PKR 13,000	PKR 2,244,000	6.5%
PKR 4,000,000	PKR 516,000	PKR 43,000	PKR 3,484,000	12.9%
PKR 7,000,000	PKR 1,424,000	PKR 118,667	PKR 5,576,000	20.3%
PKR 12,000,000	PKR 3,174,000	PKR 264,500	PKR 8,826,000	26.5%

What changed for Tax Year 2027

Finance Act 2026 revised the salaried-individual slabs from Tax Year 2026: lower marginal rates in the middle bands, new bands up to PKR 7,000,000 before the 35% top rate applies, and the 9.0% high-income surcharge abolished for salaried individuals. Switch the tax year in the calculator above to compare an earlier year.

Related Pakistan tax & salary tools

Salary Tax Calculator — monthly-salary focused, with take-home and payroll withholding.
Net Salary Calculator — full take-home after provident fund and EOBI.
Salary Tax Calculator 2025–26 — the previous tax year on its own page.
Pakistan Salary Tax Slabs guide — the full slab table and formula explained.
Tax Year Comparison — your tax across two tax years, side by side.

Official sources

Slabs are taken from FBR — Finance Act 2026 (PDF) (the controlling enacted law) and the FBR Finance Acts archive. Always verify the final figure with the FBR before filing.

Frequently asked questions

Pakistan uses progressive slabs. Each slab's rate applies only to income within that band, plus a fixed amount carried from lower slabs. Your effective rate is therefore lower than your top (marginal) rate.

Assumptions used

Slabs reflect Tax Year 2027 (Jul 2026 – Jun 2027) salaried-individual rates (Finance Act 2026; verify with FBR).
No high-income surcharge for Tax Year 2027 — it was abolished for salaried individuals under Finance Act 2026.
Input is treated as taxable income (after exempt allowances).
Monthly tax = annual tax ÷ 12.

Built for Pakistan users

Supports PKR, local terminology and Pakistan-specific assumptions. Verify with FBR or a qualified tax professional before filing.

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This calculator is for general informational purposes only and should not be treated as tax, financial or legal advice. Rules may change. Please verify with the FBR or a qualified tax professional.