Calculator · Finance Act 2026
Salary tax calculator 2026-27
Enter your salary to see your monthly income tax and take-home pay under the 2026-27 slabs for salaried individuals, and how much you save compared with 2025-26.
Tax year
Salary entered as
For salaried individuals only. Uses the Finance Act 2026 slabs; tax credits, exempt allowances and other income are not included.
Tax year 2026-27
Income tax per month
- Take-home per month
- Rs 144,000
- Tax per year
- Rs 72,000
- Effective tax rate
- 4.00%
Your top slab is 11%. The same as in 2025-26.
An estimate for information only, not tax advice. Your employer’s withholding may differ if your salary changes during the year.
Income tax slabs for salaried individuals, 2026-27
| Yearly taxable salary | Monthly salary | Tax 2026-27 |
|---|---|---|
| Rs 0 – 600,000 | Up to Rs 50,000 | Tax-free |
| Rs 600,001 – 1,200,000 | Up to Rs 100,000 | 1% of income above Rs 600,000 |
| Rs 1,200,001 – 2,200,000 | Up to Rs 183,333 | Rs 6,000 + 11% of income above Rs 1,200,000 |
| Rs 2,200,001 – 3,200,000 | Up to Rs 266,667 | Rs 116,000 + 20% of income above Rs 2,200,000 |
| Rs 3,200,001 – 4,100,000 | Up to Rs 341,667 | Rs 316,000 + 25% of income above Rs 3,200,000 |
| Rs 4,100,001 – 5,600,000 | Up to Rs 466,667 | Rs 541,000 + 29% of income above Rs 4,100,000 |
| Rs 5,600,001 – 7,000,000 | Up to Rs 583,333 | Rs 976,000 + 32% of income above Rs 5,600,000 |
| Above Rs 7,000,000 | Above Rs 583,333 | Rs 1,424,000 + 35% of income above Rs 7,000,000 |
Finance Act 2026, tax year 2027 (1 July 2026 – 30 June 2027). Calculations checked against Dawn’s budget tax calculator on 26 October 2026. The 9% surcharge on income above Rs 10 million that applied in 2025-26 has been withdrawn.
Tax on common monthly salaries
| Monthly salary | Monthly tax 2026-27 | Take-home | Monthly tax 2025-26 |
|---|---|---|---|
| Rs 50,000 | Rs 0 | Rs 50,000 | Rs 0 |
| Rs 75,000 | Rs 250 | Rs 74,750 | Rs 250 |
| Rs 1 lakh | Rs 500 | Rs 99,500 | Rs 500 |
| Rs 1.5 lakh | Rs 6,000 | Rs 144,000 | Rs 6,000 |
| Rs 2 lakh | Rs 13,000 | Rs 187,000 | Rs 13,500 |
| Rs 2.5 lakh | Rs 23,000 | Rs 227,000 | Rs 25,000 |
| Rs 3 lakh | Rs 34,667 | Rs 265,333 | Rs 38,833 |
| Rs 4 lakh | Rs 62,000 | Rs 338,000 | Rs 71,750 |
| Rs 5 lakh | Rs 92,000 | Rs 408,000 | Rs 106,750 |
| Rs 10 lakh | Rs 264,500 | Rs 735,500 | Rs 307,108 |
Questions, answered
Salary tax questions, answered.
What are the income tax slabs for salaried persons in 2026-27?
Under the Finance Act 2026, yearly taxable salary up to Rs 600,000 is tax-free; Rs 600,001–1.2m is taxed at 1%; Rs 1.2–2.2m at 11%; Rs 2.2–3.2m at 20%; Rs 3.2–4.1m at 25%; Rs 4.1–5.6m at 29%; Rs 5.6–7m at 32%; and above Rs 7m at 35%, each on the income above the slab’s start plus a fixed amount. The full table is above.
How much tax is deducted from a Rs 100,000 monthly salary?
In 2026-27, a Rs 100,000 monthly salary (Rs 1.2 million a year) pays Rs 6,000 a year in income tax, or Rs 500 a month, leaving a take-home of Rs 99,500. The example table above shows other common salaries.
What changed for salaried people in the 2026-27 budget?
The bottom three slabs, including the Rs 600,000 tax-free limit, stayed the same. Rates were cut for income between Rs 2.2 million and Rs 7 million a year, new 25%, 29% and 32% slabs were added, the 35% top rate now starts at Rs 7 million instead of Rs 4.1 million, and the 9% surcharge on income above Rs 10 million was withdrawn.
Is income tax calculated on gross salary?
It is calculated on taxable salary: gross pay minus allowances the law exempts, such as some medical allowances within limits. Enter your taxable salary for the most accurate figure. Your salary slip or employer’s tax certificate shows it.
Can I reduce my salary tax?
Tax credits can lower your tax, for example for contributions to an approved voluntary pension scheme (VPS), within limits set by income tax law. This calculator does not include credits; ask your employer or a tax adviser about the ones you qualify for.
Is this calculator official?
No. It applies the published salaried slabs and has been checked against Dawn’s budget tax calculator, but it is an estimate for information only, not tax advice. Your final tax is determined by your return filed with the FBR.