How salary tax is worked out in Pakistan
Salaried people are taxed on a progressive scale. Your yearly taxable income is split into bands, and each band has its own rate. You only pay the higher rate on the part of your income that falls inside that band. For tax year 2027 (1 July 2026 to 30 June 2027) the first Rs 600,000 a year is tax free, and the top rate of 35% starts above Rs 7 million.
This calculator takes your gross salary, adds any yearly bonus, removes any part you know is exempt, and then applies the slabs. Monthly tax is simply the yearly tax divided by 12, which is how most employers deduct it from payroll.
Worked example
A salary of Rs 250,000 a month is Rs 3,000,000 a year. Tax is Rs 116,000 on the first Rs 2.2 million, plus 20% of the Rs 800,000 above it (Rs 160,000), so Rs 276,000 a year or Rs 23,000 a month.
Good to know
- Effective rate is your total tax divided by total income. It is always lower than your top slab rate.
- Bonuses are taxed in the same year at your highest slab, so they feel heavily taxed.
- Exempt amounts such as certain medical allowances can be entered in the tax-exempt box. Ask your HR what applies to you.
- Slabs change almost every budget. Use the Edit slabs panel to update numbers as soon as new ones are announced.
Planning a purchase after tax? Try the savings goal calculator or the EMI calculator.
Frequently asked questions
What are the salary tax slabs for 2026-27?
Up to Rs 600,000 a year is tax free. Then 1% up to Rs 1.2 million, Rs 6,000 plus 11% up to Rs 2.2 million, Rs 116,000 plus 20% up to Rs 3.2 million, Rs 316,000 plus 25% up to Rs 4.1 million, Rs 541,000 plus 29% up to Rs 5.6 million, Rs 976,000 plus 32% up to Rs 7 million, and Rs 1,424,000 plus 35% above that.
Is there still a surcharge for high earners?
The 9% surcharge on income above Rs 10 million was withdrawn for salary income from tax year 2027. The calculator has an optional surcharge box, set to 0%, in case rules change or you want to test it.
Is tax charged on my whole salary or only the part above the limit?
Only the part inside each band is taxed at that band's rate. Moving into a higher slab never reduces your take-home pay below what you had before.
Do I pay tax on bonus?
Yes. A bonus is added to your income for the year, so it is taxed at your highest slab. Add it in the bonus box to see the extra tax.
What if the budget changes the slabs?
Open Edit slabs, change the limits and rates, and every result updates straight away.