Budget 2026

Tax Calculator for Salaried Persons — Pakistan 2025-26 & 2026-27

Compare tax under previous slabs (5%, 15%, 25%, 30%, 35%) with Budget 2026 FY 2026–27 proposed rates (1%, 11%, 20%, 25%, 29%, 32%). Also includes current FY 2025–26 law under Finance Act 2025.

Budget FY 2026–27 Tax Relief for Salaried Class

Per the Budget 2026 announcement: the 5% bracket is lowered to 1% and the 15% bracket to 11%. Higher bands are cut — 25% → 20%, 30% → 25%, 35% → 29% & 32% in new upper slabs. The surcharge is abolished for incomes above Rs 10 million.

Salary Increase Calculator 2026
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Budget 2026 Relief vs Previous Slabs
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FY 2025–26 (Current Law)
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Income Tax Slabs for Salaried Persons

Previous Slabs (Before Budget 2026 announcement) — Prior FBR salaried rates (5%, 15%, 25%, 30%, 35%). 10% surcharge on income tax when annual income exceeds Rs 10 million

Annual Income Slab Tax Rate / Formula Marginal Rate
Up to Rs 600,000 0% 0%
Rs 600,001 – Rs 1,200,000 5% of amount exceeding Rs 600,000 5%
Rs 1,200,001 – Rs 2,200,000 Rs 30,000 + 15% of amount exceeding Rs 1,200,000 15%
Rs 2,200,001 – Rs 3,200,000 Rs 180,000 + 25% of amount exceeding Rs 2,200,000 25%
Rs 3,200,001 – Rs 4,100,000 Rs 430,000 + 30% of amount exceeding Rs 3,200,000 30%
Above Rs 4,100,000 Rs 700,000 + 35% of amount exceeding Rs 4,100,000 35%

FY 2025–26 (July 2025 – June 2026) — Finance Act 2025. 9% surcharge on income tax when annual income exceeds Rs 10 million

Annual Income Slab Tax Rate / Formula Marginal Rate
Up to Rs 600,000 0% 0%
Rs 600,001 – Rs 1,200,000 1% of amount exceeding Rs 600,000 1%
Rs 1,200,001 – Rs 2,200,000 Rs 6,000 + 11% of amount exceeding Rs 1,200,000 11%
Rs 2,200,001 – Rs 3,200,000 Rs 116,000 + 23% of amount exceeding Rs 2,200,000 23%
Rs 3,200,001 – Rs 4,100,000 Rs 346,000 + 30% of amount exceeding Rs 3,200,000 30%
Above Rs 4,100,000 Rs 616,000 + 35% of amount exceeding Rs 4,100,000 35%

FY 2026–27 (July 2026 – June 2027) — Budget 2026 / Finance Bill 2026. Surcharge abolished under Budget 2026 proposal.

Annual Income Slab Tax Rate / Formula Marginal Rate
Up to Rs 600,000 0% 0%
Rs 600,001 – Rs 1,200,000 1% of amount exceeding Rs 600,000 1%
Rs 1,200,001 – Rs 2,200,000 Rs 6,000 + 11% of amount exceeding Rs 1,200,000 11%
Rs 2,200,001 – Rs 3,200,000 Rs 116,000 + 20% of amount exceeding Rs 2,200,000 20%
Rs 3,200,001 – Rs 4,100,000 Rs 316,000 + 25% of amount exceeding Rs 3,200,000 25%
Rs 4,100,001 – Rs 5,600,000 Rs 541,000 + 29% of amount exceeding Rs 4,100,000 29%
Rs 5,600,001 – Rs 7,000,000 Rs 976,000 + 32% of amount exceeding Rs 5,600,000 32%
Above Rs 7,000,000 Rs 1,424,000 + 35% of amount exceeding Rs 7,000,000 35%
Budget FY 2026–27 Tax Changes — Previous vs Proposed (Salaried Persons)
Annual Income Range Previous Rate Budget 2026 FY 2026–27 Change
Up to Rs 600,000 0% 0% No change
Rs 600,001 – 1,200,000 5% 1% 5% lowered to 1%
Rs 1,200,001 – 2,200,000 Rs 30,000 + 15% Rs 6,000 + 11% 15% lowered to 11%
Rs 2,200,001 – 3,200,000 Rs 180,000 + 25% Rs 116,000 + 20% 25% cut to 20%
Rs 3,200,001 – 4,100,000 Rs 430,000 + 30% Rs 316,000 + 25% 30% cut to 25%
Rs 4,100,001 – 5,600,000 Rs 700,000 + 35% Rs 541,000 + 29% 35% cut to 29% (new slab)
Rs 5,600,001 – 7,000,000 Rs 700,000 + 35% Rs 976,000 + 32% 35% cut to 32% (new slab)
Above Rs 7,000,000 Rs 700,000 + 35% Rs 1,424,000 + 35% 35% only above Rs 7M
Surcharge (> Rs 10M income) 10% on total tax Abolished Full relief
Frequently Asked Questions

Annual income up to Rs 600,000 remains tax-free (0%) under both previous slabs and the Budget 2026 proposed FY 2026–27 structure. This equals Rs 50,000 per month with no income tax liability.

Budget FY 2026–27 lowers the 5% bracket to 1% and the 15% bracket to 11%. Higher bands are cut from 25%, 30%, and 35% to 20%, 25%, 29%, and 32%, with the top 35% rate applying only above Rs 7 million. The surcharge on incomes above Rs 10 million is proposed to be abolished.

Under the Finance Act 2025 (current law for July 2025–June 2026): 0% up to Rs 600,000; 1% on Rs 600,001–1,200,000; Rs 6,000 + 11% on Rs 1,200,001–2,200,000; Rs 116,000 + 23% on Rs 2,200,001–3,200,000; Rs 346,000 + 30% on Rs 3,200,001–4,100,000; Rs 616,000 + 35% above Rs 4,100,000. A 9% surcharge applies if annual income exceeds Rs 10 million.

Proposed slabs: 0% up to Rs 600,000; 1% (was 5%) on Rs 600,001–1,200,000; Rs 6,000 + 11% (was 15%) on Rs 1,200,001–2,200,000; Rs 116,000 + 20% (was 25%) on Rs 2,200,001–3,200,000; Rs 316,000 + 25% (was 30%) on Rs 3,200,001–4,100,000; Rs 541,000 + 29% on Rs 4,100,001–5,600,000; Rs 976,000 + 32% on Rs 5,600,001–7,000,000; Rs 1,424,000 + 35% above Rs 7,000,000.

Tax is calculated on annual taxable salary using progressive slabs. Find your income bracket, then apply: Fixed base tax + (marginal rate × amount exceeding the slab threshold). Employers deduct monthly tax at source. This calculator shows annual and monthly tax based on gross salary entered.

Rs 100,000/month = Rs 1,200,000/year. Previous slabs (5%/15%): Rs 30,000/year tax. Budget 2026 proposed FY 2026–27 (1%/11%): Rs 6,000/year — saving Rs 24,000 annually.

Rs 200,000/month = Rs 2,400,000/year. Previous slabs: Rs 180,000 + 25% × 200,000 = Rs 230,000/year. Budget 2026 proposed: Rs 116,000 + 20% × 200,000 = Rs 156,000/year — saving Rs 74,000 annually.

Previous slabs included a 10% surcharge on total tax when annual income exceeded Rs 10 million. FY 2025–26 reduced this to 9%. Budget 2026 proposes abolishing the surcharge entirely for FY 2026–27.

FY 2026–27 rates are based on the Finance Bill 2026 announced in the federal budget speech. They remain proposals until passed by the National Assembly and notified in the Finance Act.

Yes. Enter your monthly gross salary to compare tax under previous slabs versus Budget 2026 proposed FY 2026–27 rates. Pair with our Budget 2026 Salary Increase Calculator to estimate post-budget gross pay.
Disclaimer: This calculator applies FBR salaried-individual tax slabs to gross salary as fully taxable income. It excludes deductions, tax credits, exempt allowances, and other adjustments. FY 2026–27 figures are based on Budget 2026 proposals and may change after parliamentary approval. This is not tax advice — consult a qualified tax professional or FBR for official guidance.