TaxToolSet's Pakistan salary calculator is built for Tax Year 2027, which runs from 1 July 2026 to 30 June 2027. This guide explains the salaried-individual rate table that calculator uses, where those figures come from, and which facts still need to be checked on the official source before you rely on a number.

This is general information, not tax advice and not an FBR determination. TaxToolSet is independent of the Federal Board of Revenue.

Which table applies to you

The salaried rate table is not automatic just because you receive a salary. In the TaxToolSet rule set, the salaried progressive bands apply where income chargeable under the head salary exceeds 75% of taxable income. That condition is stored on the TY2027 salary rule set and is also stated on the public salary calculator and the tax-slabs page.

If salary is not more than 75% of taxable income, the general individual table can apply instead. That table is different, and a 10% surcharge on computed income tax applies when general/non-salaried taxable income exceeds PKR 10 million. The salary rule set sets salaried_surcharge_rate to 0: the salaried surcharge was removed while the general section 4AB surcharge continues. Do not apply the PKR 10 million surcharge to a case that is correctly on the salaried table.

Sources: TaxToolSet Pakistan Salary Tax TY2027 and Non-Salaried Individual Income Tax TY2027 rule sets (PakistanVerifiedTaxDataSeeder); legal locators First Schedule, Part I, Division I, clause (2) (salaried) and clause (1) (general); section 4AB (general surcharge); Finance Act 2026 as the amending authority.

The official salaried slabs for Tax Year 2027

Finance Act 2026 substituted the table in First Schedule, Part I, Division I, clause (2). The same bands are in the FBR withholding tax rate card for Tax Year 2027 (section 149 salary) and in TaxToolSet's published salary rule set.

Taxable income Tax
Does not exceed PKR 600,000 0%
Exceeds PKR 600,000 but does not exceed PKR 1,200,000 1% of the amount exceeding PKR 600,000
Exceeds PKR 1,200,000 but does not exceed PKR 2,200,000 PKR 6,000 + 11% of the amount exceeding PKR 1,200,000
Exceeds PKR 2,200,000 but does not exceed PKR 3,200,000 PKR 116,000 + 20% of the amount exceeding PKR 2,200,000
Exceeds PKR 3,200,000 but does not exceed PKR 4,100,000 PKR 316,000 + 25% of the amount exceeding PKR 3,200,000
Exceeds PKR 4,100,000 but does not exceed PKR 5,600,000 PKR 541,000 + 29% of the amount exceeding PKR 4,100,000
Exceeds PKR 5,600,000 but does not exceed PKR 7,000,000 PKR 976,000 + 32% of the amount exceeding PKR 5,600,000
Exceeds PKR 7,000,000 PKR 1,424,000 + 35% of the amount exceeding PKR 7,000,000

Sources:

The rate card itself carries FBR's disclaimer that the original statute prevails if the card and the law differ. Use the Act and the Ordinance if there is any contradiction.

How to read a band

Each row after the first combines a fixed amount with a percentage of the income above that band's floor. The fixed amount is the tax on the income up to that floor.

Worked example, using only the official formula. Suppose taxable income for the year is PKR 1,800,000, and the salaried table applies.

  • PKR 1,800,000 sits in the third band (above 1,200,000 and not above 2,200,000).
  • Tax = PKR 6,000 + 11% × (1,800,000 − 1,200,000).
  • 11% of PKR 600,000 is PKR 66,000.
  • Tax = PKR 72,000.

A second check: taxable income of PKR 500,000 does not exceed 600,000, so tax is PKR 0.

Enter your own figure in the Pakistan Salary Tax Calculator. The tax slabs page renders the same TY2027 salary and general tables from the same rule sets.

What "taxable income" means here

The table is applied to taxable income, not automatically to gross pay. Allowances, exemptions, deductions and other income can change the figure that goes into the bands. TaxToolSet does not invent exemptions that are not in a published rule set.

The monthly figure shown by the quick salary calculator is annual tax divided by 12. Actual employer withholding under section 149 can differ where tax credits, prior employment, adjustments or other facts apply.

Medical allowance: the 10% of basic cap

TaxToolSet also implements a medical-allowance exemption rule for TY2027. When that option is used, medical allowance not exceeding 10% of basic salary is treated as exempt where free medical treatment, hospitalization, or reimbursement of medical or hospitalization charges is not provided under the terms of employment.

The legal locator stored on that rule is Second Schedule, Part I, clause (139)(a). The quick calculator, if the medical option is selected, assumes the total entered is basic salary plus medical allowance equal to 10% of basic, so basic is derived as total ÷ 1.10. Packages that also include house rent, utilities, bonuses or perquisites should use the Advanced Salary Calculator instead of forcing that assumption.

If your employment terms do include free treatment, hospitalization or reimbursement, do not assume this exemption applies. Check the clause and your contract.

What this guide does not calculate

  • Provincial professional taxes, social security, or EOBI. [VERIFY] any interaction with your payroll if those appear on a payslip.
  • Tax credits, zakat, deductions for investment or donations, or double-employment adjustments, unless a published TaxToolSet rule covers them.
  • The due date for the return or for employer withholding statements. Those dates change by circular and are not hardcoded in the salary rule set. [VERIFY] the current FBR due date that applies to you.
  • Special regimes, reduced rates, or exemptions that are not in the TY2027 salary or medical rule sets.

How to use the calculator with this table

  1. Confirm the period is Tax Year 2027 (1 July 2026 to 30 June 2027), or open a historical salary page if you need an earlier year.
  2. Confirm that salary is more than 75% of taxable income if you are using the salaried table.
  3. Decide whether the medical-allowance option is factually available.
  4. Enter the income the tool asks for, then compare the result with your employer certificate and the official table above.
  5. If the package is more than basic-plus-medical, switch to the advanced salary calculator.

The current-year tool stays on the live salary URL. Earlier years remain on separate archive URLs so an older rate is not silently replaced.

Sources