Understanding the Enacted 2026-27 Salary Tax Slabs
The enacted 2026-27 salaried tax structure keeps the tax-free threshold at Rs. 600,000 per year, keeps the first two taxable slabs at 1% and 11%, then reduces several upper-middle brackets and splits the previous top bracket into three ranges.
Effective law: Finance Act 2026 received presidential assent on June 26, 2026. Unless otherwise provided, it applies from July 1, 2026.
Tax-Free ThresholdRs. 600,000
Annual salary exempt from income tax.
Highest Slab35%
Applies above Rs. 7 million annually.
Tax MethodProgressive
Only slab portions are taxed at slab rate.
Finance Act Salary Tax Slabs 2026-27
Monthly salary is usually converted into annual taxable salary before applying the slab formula.
| Annual Taxable Salary | Tax Formula |
|---|---|
| Up to Rs. 600,000 | 0% |
| Rs. 600,001 to Rs. 1,200,000 | 1% of amount above Rs. 600,000 |
| Rs. 1,200,001 to Rs. 2,200,000 | Rs. 6,000 + 11% of amount above Rs. 1,200,000 |
| Rs. 2,200,001 to Rs. 3,200,000 | Rs. 116,000 + 20% of amount above Rs. 2,200,000 |
| Rs. 3,200,001 to Rs. 4,100,000 | Rs. 316,000 + 25% of amount above Rs. 3,200,000 |
| Rs. 4,100,001 to Rs. 5,600,000 | Rs. 541,000 + 29% of amount above Rs. 4,100,000 |
| Rs. 5,600,001 to Rs. 7,000,000 | Rs. 976,000 + 32% of amount above Rs. 5,600,000 |
| Above Rs. 7,000,000 | Rs. 1,424,000 + 35% of amount above Rs. 7,000,000 |
Example Salary Calculations
| Monthly Salary | Annual Salary | Annual Tax | Monthly Tax | Take-Home |
|---|---|---|---|---|
| Rs. 100,000 | Rs. 1,200,000 | Rs. 6,000 | Rs. 500 | Rs. 99,500 |
| Rs. 150,000 | Rs. 1,800,000 | Rs. 72,000 | Rs. 6,000 | Rs. 144,000 |
| Rs. 200,000 | Rs. 2,400,000 | Rs. 156,000 | Rs. 13,000 | Rs. 187,000 |
| Rs. 300,000 | Rs. 3,600,000 | Rs. 416,000 | Rs. 34,667 | Rs. 265,333 |
| Rs. 500,000 | Rs. 6,000,000 | Rs. 1,104,000 | Rs. 92,000 | Rs. 408,000 |
Official References
The rates above are taken from the gazetted Finance Act 2026.
FAQs - Salary Tax Slabs 2026-27
What is the tax-free salary limit for 2026-27?
Annual salary income up to Rs. 600,000 remains tax-free.
Are these rates final?
Yes. These rates are enacted in Finance Act 2026 and apply from July 1, 2026.
Does the top rate apply to my full salary?
No. Pakistan uses progressive slabs, so only the portion inside a slab is taxed at that slab rate.