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FBR Income Tax Calculator FY 2026-27

Calculate your exact salary tax using the latest FBR slabs — effective July 1, 2026. 9% surcharge abolished. New reduced rates for middle-income earners.

✓ Updated July 2026 — Finance Bill 2026 | FBR.gov.pk
⚡ Quick Answer

On a monthly salary of Rs.100,000 (Rs.1.2M/year) in FY 2026-27, your annual income tax is just Rs.6,000 (monthly: Rs.500). Take-home pay is approximately Rs.99,500/month. The tax-free threshold remains Rs.600,000/year. The 9% surcharge has been abolished from Tax Year 2027. Key change: 23%→20%, 30%→25%, 35%→29% across four slabs.

Calculate Your Salary Tax — FY 2026-27
Your gross monthly salary before deductions
Salary tax same for both — affects other WHT
Monthly Take-Home
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After income tax
Annual Take-Home
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Yearly net salary
Monthly Tax
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Deducted by employer
Annual Tax
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Total yearly liability
Effective Tax Rate
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% of gross salary
Tax Saving vs FY26
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Annual saving on new rates

📊 Tax Bracket

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FBR Key Figures FY 2026-27

Tax-Free Threshold
Rs.600,000
Rs.50,000/month — unchanged
Surcharge
Abolished ✅
9% surcharge removed from TY2027
Max Rate
35%
Above Rs.7,000,000/year
Effective Date
July 1, 2026
Finance Bill 2026
Min Wage 2026-27
Rs.40,700
+10% increase announced
Govt Salary Raise
+7%
Federal employees FY 2026-27
FBR Income Tax Slabs FY 2026-27 — Salaried Persons NEW
Annual Taxable IncomeTax RateTax Formulavs FY 2025-26
Up to Rs.600,0000%NilNo change
Rs.600,001 – Rs.1,200,0001%1% of amount above Rs.600,000↓ was 5%
Rs.1,200,001 – Rs.2,200,00011%Rs.6,000 + 11% above Rs.1,200,000↓ was 15%
Rs.2,200,001 – Rs.3,200,00020%Rs.116,000 + 20% above Rs.2,200,000↓ was 23%
Rs.3,200,001 – Rs.4,100,00025%Rs.316,000 + 25% above Rs.3,200,000↓ was 30%
Rs.4,100,001 – Rs.5,600,00029%Rs.541,000 + 29% above Rs.4,100,000↓ was 35%
Rs.5,600,001 – Rs.7,000,00032%Rs.976,000 + 32% above Rs.5,600,000New slab ✨
Above Rs.7,000,00035%Rs.1,424,000 + 35% above Rs.7,000,000Threshold raised ↑

Effective July 1, 2026 (Tax Year 2027). 9% surcharge completely abolished. Source: Finance Bill 2026, FBR.gov.pk, Federal Budget June 12, 2026.

Take-Home Pay Examples FY 2026-27
Monthly SalaryAnnual SalaryAnnual TaxMonthly TaxTake-Home/MonthEffective Rate
Rs.30,000Rs.360,000Rs.0Rs.0Rs.30,0000%
Rs.50,000Rs.600,000Rs.0Rs.0Rs.50,0000%
Rs.100,000Rs.1,200,000Rs.6,000Rs.500Rs.99,5000.5%
Rs.150,000Rs.1,800,000Rs.72,000Rs.6,000Rs.144,0004.0%
Rs.200,000Rs.2,400,000Rs.152,000Rs.12,667Rs.187,3336.3%
Rs.300,000Rs.3,600,000Rs.358,000Rs.29,833Rs.270,1679.9%
Rs.500,000Rs.6,000,000Rs.893,000Rs.74,417Rs.425,58314.9%
Rs.700,000Rs.8,400,000Rs.1,494,000Rs.124,500Rs.575,50017.8%

FY 2026-27 rates, salaried persons, no deductions. Actual take-home may vary with Zakat, pension, or other deductions. Source: FBR Finance Bill 2026.

FY 2025-26 vs FY 2026-27 — Tax Saving Comparison
Monthly SalaryTax FY 2025-26Tax FY 2026-27Annual Saving
Rs.100,000Rs.30,000/yrRs.6,000/yrRs.24,000 saved ✅
Rs.150,000Rs.105,000/yrRs.72,000/yrRs.33,000 saved ✅
Rs.200,000Rs.192,000/yrRs.152,000/yrRs.40,000 saved ✅
Rs.300,000Rs.428,000/yrRs.358,000/yrRs.70,000 saved ✅
Rs.500,000Rs.1,043,000/yrRs.893,000/yrRs.150,000 saved ✅

💡 Tax Saving Tips — Pakistan FY 2026-27

1. Register on FBR ATL — Become an Active Filer

Register on FBR's Active Taxpayer List (ATL) at iris.fbr.gov.pk. Filers pay lower withholding tax on bank withdrawals, property transactions, and vehicle purchases. Non-filers pay significantly higher rates on these transactions even though salary tax rates are the same.

2. Claim Zakat Deduction (Section 60)

Zakat paid on savings bank accounts or other assets during the tax year is deductible from taxable income under Section 60 of the Income Tax Ordinance. Keep your bank statement showing Zakat deductions as proof when filing your return.

3. Invest in Approved Pension Fund (Section 63)

Contributions to an approved pension fund are tax deductible up to 20% of your taxable income (25% if age 41-50, 30% if above 50). This directly reduces your taxable income — highly effective at the 20% or 25% slab.

4. Education Fee Tax Credit (Section 60D)

A 5% tax credit is available on tuition fees paid for up to 3 children in Pakistani educational institutions — provided fee receipts are maintained and income is properly documented in your tax return.

5. File Your Return by October 31, 2026

File your Tax Year 2026 (FY 2025-26) return by October 31, 2026 to avoid penalties, maintain ATL status, and ensure any refund is processed. Use FBR's IRIS portal at iris.fbr.gov.pk for online filing — it is free and takes 30-60 minutes.

Frequently Asked Questions

What are the FBR income tax slabs for FY 2026-27?
FBR salaried tax slabs FY 2026-27 (effective July 1, 2026): 0% up to Rs.600,000; 1% on Rs.600,001–1,200,000; 11% on Rs.1,200,001–2,200,000; 20% on Rs.2,200,001–3,200,000; 25% on Rs.3,200,001–4,100,000; 29% on Rs.4,100,001–5,600,000; 32% on Rs.5,600,001–7,000,000; 35% above Rs.7,000,000. The 9% surcharge is completely abolished. Source: Finance Bill 2026, FBR.gov.pk.
What changed in Pakistan income tax for FY 2026-27?
Key FY 2026-27 changes: (1) Rates reduced in 4 slabs — 23%→20%, 30%→25%, 35%→29%, new 32% slab introduced; (2) 9% surcharge completely abolished from Tax Year 2027; (3) Maximum 35% threshold raised from Rs.4.1 million to Rs.7 million; (4) New slab added: Rs.5.6M–7.0M at 32%. Budget presented June 12, 2026 by Finance Minister Muhammad Aurangzeb, effective July 1, 2026.
What is the tax-free income limit in Pakistan 2026-27?
The tax-free threshold remains Rs.600,000/year (Rs.50,000/month). Income up to Rs.600,000 annually is completely exempt from income tax — unchanged from FY 2025-26. Source: FBR Finance Bill 2026.
How much tax on Rs.100,000 monthly salary in Pakistan 2026-27?
On Rs.100,000/month (Rs.1,200,000/year), annual tax is Rs.6,000 (1% on Rs.600,000 above threshold). Monthly deduction is Rs.500. Take-home is Rs.99,500/month. Effective rate: 0.5%. Compare to FY 2025-26 where the same salary attracted Rs.30,000 annual tax — a saving of Rs.24,000/year under new slabs.
Is the 9% surcharge still applicable in FY 2026-27?
No. The 9% surcharge under Section 4AB on salaried individuals earning above Rs.10 million annually has been completely abolished from Tax Year 2027 (FY 2026-27), effective July 1, 2026. High earners now pay normal progressive income tax only, with no additional surcharge. Source: Finance Bill 2026.
What is the difference between filer and non-filer for salary tax?
For salary income, filers and non-filers pay the same income tax under FBR slabs. The difference appears in other withholding taxes: non-filers pay higher WHT on bank transactions, property, and vehicles, and cannot claim tax refunds. Registering as a filer on FBR's Active Taxpayer List at iris.fbr.gov.pk is strongly recommended.

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Disclaimer: This calculator provides estimates based on Finance Bill 2026 salaried income tax slabs. Actual tax liability may differ based on deductions, credits, and employer-specific calculations. Always verify with your employer's payroll department or a registered tax consultant. Source: FBR.gov.pk — Last verified July 2026.