Salary tax calculator 2026-27

Your monthly salary is multiplied by 12 to get annual taxable income. That figure is matched to its slab: you pay the slab's fixed amount plus the slab rate on the income above the slab's starting point. The yearly tax divided by 12 is the monthly deduction your employer withholds.

Finance Act 2026 spread the slabs across eight bands, lowered the middle rates, moved the 35% top rate to income above PKR 7 million, and removed the high-income surcharge for salaried individuals. Income up to PKR 600,000 a year remains tax-free.

For tax year 2025 a 10% surcharge applied to the tax of salaried individuals with taxable income above PKR 10 million; for tax year 2026 it was 9%. The calculator adds it automatically when you choose those years.