Income tax calculator 2026-27
Salary or business income tax for tax year 2027, with monthly deduction, take-home pay and a slab-by-slab breakdown.
Your income
Salaried means salary is more than 75% of your taxable income. Business rates also apply to AOPs and to individuals with rent, freelance or professional income.
| Band | Rate | Tax |
|---|
Rates: Finance Act 2026 and FBR withholding tax rate card, tax year 2027 (1 July 2026 – 30 June 2027). Estimates for guidance only, not advice on your case. Exemptions, credits and special regimes can change the result.
Salaried tax slabs, tax year 2027
These rates apply to salary paid from 1 July 2026 to 30 June 2027, as set by the Finance Act 2026. The Act also withdrew the surcharge on salary income.
| Taxable income (Rs) | Fixed tax | Rate on excess |
|---|---|---|
| 0 – 600,000 | Rs 0 | 0% |
| 600,000 – 1,200,000 | Rs 0 | 1% |
| 1,200,000 – 2,200,000 | Rs 6,000 | 11% |
| 2,200,000 – 3,200,000 | Rs 116,000 | 20% |
| 3,200,000 – 4,100,000 | Rs 316,000 | 25% |
| 4,100,000 – 5,600,000 | Rs 541,000 | 29% |
| 5,600,000 – 7,000,000 | Rs 976,000 | 32% |
| 7,000,000 – and above | Rs 1,424,000 | 35% |
Business individuals and AOPs
Non-salaried individuals and associations of persons are taxed on these slabs. A 10% surcharge on the tax applies where taxable income exceeds Rs 10 million.
| Taxable income (Rs) | Fixed tax | Rate on excess |
|---|---|---|
| 0 – 600,000 | Rs 0 | 0% |
| 600,000 – 1,200,000 | Rs 0 | 15% |
| 1,200,000 – 1,600,000 | Rs 90,000 | 20% |
| 1,600,000 – 3,200,000 | Rs 170,000 | 30% |
| 3,200,000 – 5,600,000 | Rs 650,000 | 40% |
| 5,600,000 – and above | Rs 1,610,000 | 45% |
How to read your result
- Effective rate is your total tax divided by your income.
- Top slab rate is the rate on your last rupee of income, which matters when you consider a raise or bonus.
- Your employer deducts salary tax monthly under section 149. If too much was deducted, you can claim it back when you file your return.
Common questions
Is this the tax my employer will deduct?
Close to it. Employers spread the annual tax across the year under section 149, so mid-year changes, bonuses or arrears can change the monthly amount. Allowances that are exempt or taxed separately are not included here.
Did the surcharge on salaried people end?
Yes. Under the Finance Act 2026 the surcharge no longer applies to salary income for tax year 2027. It still applies to other individuals and AOPs above Rs 10 million taxable income.
Which slabs apply if I have salary and rental income?
If salary is more than 75% of your taxable income, salaried rates apply to the whole. Otherwise the business rates apply. Rental income may also be taxed separately. We can work this out with you when we file.
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