Tax Year 2026-27 · Finance Act 2026
Income Tax Calculator
Effective tax rate
0%
Slab 1 of 8
Up to Rs 600,000
0%
Estimates only, based on the Finance Act 2026 (Finance Act 2025 for Tax Year 2025-26). Consult HiBiz Insight for advice specific to your situation.
Tax slabs
Income tax rates for 2026-27
| Annual taxable income | Tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 – Rs 1,200,000 | 1% of the amount exceeding Rs 600,000 |
| Rs 1,200,001 – Rs 2,200,000 | Rs 6,000 + 11% of the amount exceeding Rs 1,200,000 |
| Rs 2,200,001 – Rs 3,200,000 | Rs 116,000 + 20% of the amount exceeding Rs 2,200,000 |
| Rs 3,200,001 – Rs 4,100,000 | Rs 316,000 + 25% of the amount exceeding Rs 3,200,000 |
| Rs 4,100,001 – Rs 5,600,000 | Rs 541,000 + 29% of the amount exceeding Rs 4,100,000 |
| Rs 5,600,001 – Rs 7,000,000 | Rs 976,000 + 32% of the amount exceeding Rs 5,600,000 |
| Above Rs 7,000,000 | Rs 1,424,000 + 35% of the amount exceeding Rs 7,000,000 |
| Annual taxable income | Tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 – Rs 1,200,000 | 15% of the amount exceeding Rs 600,000 |
| Rs 1,200,001 – Rs 1,600,000 | Rs 90,000 + 20% of the amount exceeding Rs 1,200,000 |
| Rs 1,600,001 – Rs 3,200,000 | Rs 170,000 + 30% of the amount exceeding Rs 1,600,000 |
| Rs 3,200,001 – Rs 5,600,000 | Rs 650,000 + 40% of the amount exceeding Rs 3,200,000 |
| Above Rs 5,600,000 | Rs 1,610,000 + 45% of the amount exceeding Rs 5,600,000 |
Non-salaried individual and AOP slabs are unchanged from 2025-26 — the Finance Act 2026 did not revise them. Withholding, property, super tax and other rates are in the Tax Card 2026-27 (previous year: Tax Card 2025-26 PDF).
What changed
Salaried tax: 2026-27 vs 2025-26
| Monthly salary | Tax 2025-26 | Tax 2026-27 | Monthly saving |
|---|---|---|---|
| Rs 100,000 | Rs 500 | Rs 500 | — |
| Rs 150,000 | Rs 6,000 | Rs 6,000 | — |
| Rs 250,000 | Rs 25,000 | Rs 23,000 | Rs 2,000 |
| Rs 350,000 | Rs 54,250 | Rs 47,500 | Rs 6,750 |
| Rs 500,000 | Rs 106,750 | Rs 92,000 | Rs 14,750 |
| Rs 750,000 | Rs 194,250 | Rs 177,000 | Rs 17,250 |
Worked example · Tax Year 2026-27
Monthly salary of Rs 250,000
- Annual income: Rs 250,000 × 12 = Rs 3,000,000
- This falls in the Rs 2,200,001 – Rs 3,200,000 slab.
- Tax = Rs 116,000 + 20% × (Rs 3,000,000 − Rs 2,200,000) = Rs 276,000 per year
- Monthly tax = Rs 276,000 ÷ 12 = Rs 23,000
FAQ
Tax calculator questions
Who counts as a salaried individual?
Under the Income Tax Ordinance, you are taxed at salaried rates when salary is more than 75% of your total taxable income. Otherwise the non-salaried individual / AOP slabs apply.
Is the tax calculated on my monthly or annual income?
Tax slabs are annual. If you enter a monthly amount, we multiply it by 12, apply the annual slab and then divide the tax by 12 to show your monthly deduction.
What changed for salaried people in 2026-27?
The Finance Act 2026 increased the salaried slabs from six to eight. The 23% and 30% rates were cut to 20% and 25%, new 29% and 32% brackets were added, and the top 35% rate now applies only above Rs 7 million (previously Rs 4.1 million). Income up to Rs 600,000 remains tax-free.
Does this include the surcharge on high incomes?
No. For salaried individuals the 9% surcharge on income above Rs 10 million was abolished from Tax Year 2026-27. Surcharge for non-salaried individuals and AOPs is not included in this estimate — contact us for an exact computation.
Are allowances, deductions and tax credits included?
No. The calculator applies the slab rates to the taxable income you enter. Exempt allowances, Zakat, donations, pension contributions and other credits can reduce your actual liability.
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