Pakistan Salary Tax 2026-27: How Much Less You Pay Under the New Slabs

Salary tax in Pakistan changed on 1 July 2026, the start of tax year 2027. The Finance Act 2026 kept the Rs 600,000 tax-free threshold and the first three slabs, but cut the rates above Rs 2.2 million, added new brackets, moved the 35% rate up to income above Rs 7 million, and removed the 9% surcharge for salaried taxpayers.

The 2026-27 salaried slabs

• Up to Rs 600,000: 0%
• Rs 600,001 to Rs 1.2 million: 1% of the amount above Rs 600,000
• Rs 1.2 million to Rs 2.2 million: Rs 6,000 + 11% above Rs 1.2 million
• Rs 2.2 million to Rs 3.2 million: Rs 116,000 + 20% (was 23%)
• Rs 3.2 million to Rs 4.1 million: Rs 316,000 + 25% (was 30%)
• Rs 4.1 million to Rs 5.6 million: Rs 541,000 + 29%
• Rs 5.6 million to Rs 7 million: Rs 976,000 + 32%
• Above Rs 7 million: Rs 1,424,000 + 35%

Rs 300,000 a month: Rs 50,000 a year less

Under the 2025-26 slabs the same salary paid Rs 466,000 a year, so the new budget saves Rs 50,000, about Rs 4,167 a month.

Rs 500,000 a month: Rs 177,000 a year less

In 2025-26 this salary paid Rs 1,281,000, so the saving is Rs 177,000 a year. People earning up to Rs 1.2 million a year (Rs 100,000 a month) see no change: they still pay Rs 6,000 a year.

Filing this year's return

The return you file around September 2026 covers July 2025 to June 2026, which is tax year 2026 and uses the old slabs. The new rates apply to salary from July 2026 onward, and your employer should already be withholding less.

Tip: Compare your July 2026 payslip with June. If the tax deducted hasn't fallen and your salary is above Rs 2.2 million a year, ask payroll whether the new slabs have been applied.