Updated 11 October 2026. Budget 2026-27 restructured the income tax slabs for salaried individuals in Pakistan. The FBR says new intermediate slabs were added and that the point where the top 35% rate applies rises from Rs 4.1 million to Rs 7 million. This page shows the slab table, what changed from last year and a worked example.
Source note: The FBR’s salient features confirm the new slab structure and the Rs 7 million threshold but do not print every bracket. The table below comes from a third-party tax site that states it is based on Finance Act 2026. Confirm the figures against the FBR notification before filing.
Salaried Income Tax Slabs, FY 2026-27
| Annual income (Rs) | Fixed tax (Rs) | Rate on the excess |
|---|---|---|
| Up to 600,000 | 0 | 0% |
| 600,001 to 1,200,000 | 0 | 1% of amount above 600,000 |
| 1,200,001 to 2,200,000 | 6,000 | 11% of amount above 1,200,000 |
| 2,200,001 to 3,200,000 | 116,000 | 20% of amount above 2,200,000 |
| 3,200,001 to 4,100,000 | 316,000 | 25% of amount above 3,200,000 |
| 4,100,001 to 5,600,000 | 541,000 | 29% of amount above 4,100,000 |
| 5,600,001 to 7,000,000 | 976,000 | 32% of amount above 5,600,000 |
| Above 7,000,000 | 1,424,000 | 35% of amount above 7,000,000 |
What Changed From 2025-26
- Slabs up to Rs 2.2 million are unchanged.
- Rs 2.2 to 3.2 million: rate cut from 23% to 20%.
- Rs 3.2 to 4.1 million: rate cut from 30% to 25%.
- Rs 4.1 to 5.6 million: rate cut from 35% to 29%.
- New 32% slab for Rs 5.6 to 7 million.
- The 35% rate now starts at Rs 7 million, instead of Rs 4.1 million.
- The salaried surcharge, 9% in 2025-26, is reported as abolished from 1 July 2026. ProPakistani reported in June 2026 that the surcharge removal was planned for top earners.
Those earning around Rs 600,000 to Rs 1.2 million see little change, so the relief mostly benefits upper-middle-income earners.
Worked Example
A salary of Rs 300,000 per month is Rs 3,600,000 a year. It falls in the Rs 3.2 to 4.1 million slab: fixed tax Rs 316,000 plus 25% of the amount above Rs 3,200,000 (Rs 400,000 x 25% = Rs 100,000). Annual tax is about Rs 416,000, or roughly Rs 34,667 a month, before any rebates or other adjustments.
Tips
- Your employer deducts tax monthly. Compare your payslip with the slab table.
- Keep your tax certificate and file the annual return on time to remain on the active taxpayer list.
- Use the FBR website for the official Finance Act text.
Frequently Asked Questions
What is the maximum income tax rate for salaried people in 2026-27?
35%, now applying above Rs 7 million a year.
Is the salaried surcharge removed?
Reported as abolished from 1 July 2026, per the tax site we reviewed. Check the Finance Act.
Who benefits most?
Salaried people earning Rs 2.2 million and above, where rates were cut.
Are slabs below Rs 1.2 million changed?
No change was reported to the 1% band.
Sources
- FBR: Budget 2026-27 salient features (PDF)
- ProPakistani, 11 Jun 2026: Govt decides to provide relief to highest earning salaried class
- TaxCalcPK: Tax slabs Pakistan 2026-27 (third-party)
Last checked: 11 October 2026. Gov-programs.info is an independent information site and is not affiliated with any government body. Figures are as reported by the cited outlets; always confirm on the official portal before applying or sharing documents.
