How this calculator works
Pakistan taxes salaried income on a progressive slab basis. Each slab charges a fixed amount at its lower edge plus a percentage of the income above that edge. For tax year 2026-27, which runs from 1 July 2026 to 30 June 2027, the slabs are those set by the Finance Act 2026. The salaried slabs apply where salary is more than 75% of taxable income; a person with substantial other income is taxed under the non-salaried rules instead. Income up to PKR 600,000 is exempt. The next band charges 1% of the amount above 600,000, and the rates then rise through 11%, 20%, 25%, 29% and 32% to 35% above PKR 7,000,000. The 9% surcharge that used to apply to high salaried incomes was abolished for salaried individuals from this tax year. An employer normally withholds tax each month under section 149 of the Income Tax Ordinance, using the same slabs, so the monthly figure here is an estimate of that deduction. This calculator treats gross monthly salary as taxable salary. It does not deduct any exempt allowances, does not apply tax credits for investments or donations, does not include other income or a second employer, and does not model the super tax. Enter the taxable salary from your employer if it differs from gross pay.
Formula
Annual taxable income = monthly salary x 12. Find the slab the annual income falls in. Tax = fixed amount at the slab floor + rate x (annual income - floor). Monthly withholding = annual tax / 12. Net monthly pay = monthly salary - monthly withholding. Effective rate = annual tax / annual income.
Worked example
A monthly salary of PKR 150,000 gives annual income of PKR 1,800,000. That falls in the PKR 1,200,001 to 2,200,000 band, so the tax is PKR 6,000 + 11% x (1,800,000 - 1,200,000) = PKR 72,000 a year, or PKR 6,000 a month. Net monthly pay is PKR 144,000 and the effective rate is 4.00%. At PKR 500,000 a month the annual income is PKR 6,000,000, and the tax is PKR 976,000 + 32% x 400,000 = PKR 1,104,000.
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Frequently asked questions
Which tax year does this use?
Tax year 2026-27, set by the Finance Act 2026, running from 1 July 2026 to 30 June 2027. Rates change in most budgets, so check the latest Finance Act before relying on the result for a later year.
Is the 9% surcharge included?
No. The surcharge under section 4AB was abolished for salaried individuals from tax year 2026-27. It still applies to non-salaried income, which this calculator does not cover.
Should I enter gross salary or taxable salary?
Enter taxable salary. Some allowances are exempt or partly exempt, and some benefits are valued separately. If your employer provides a taxable salary figure, use that rather than the headline gross.
Does this include tax credits or other income?
No. Investment and donation credits, rental income, business income and foreign income are outside the model. A filer with other income needs to combine the slabs with those amounts.
Why is the monthly withholding different from the final tax?
The employer withholds an estimate during the year. If salary changes, the employer should adjust later deductions. The final liability is settled on the annual return due by 30 September after the tax year ends.