How Pakistan salary tax is calculated
Pakistan taxes salaried income on progressive slabs — only the part of your income inside a slab is taxed at that slab’s rate, so a raise never makes your total take-home go down. If your only income is salary and your employer deducts the full tax, that deduction is generally your final liability, though you must still file a return if you meet the FBR’s filing conditions (for example, owning certain assets or a car/property above the notified thresholds). Keep your salary slips and the annual tax certificate (section 149 certificate) your employer issues — you will need them for your return.
Is the “tax-free limit” really Rs 600,000?
For salaried individuals in FY 2026-27, yes: annual taxable salary up to Rs 600,000 is taxed at 0%. Above that, only the excess is taxed at the next slab’s rate — the first Rs 600,000 stays tax-free for everyone.
Has the surcharge been removed?
Yes. The 9% surcharge that applied when annual taxable income exceeded Rs 10 million was abolished from 1 July 2026 under Budget 2026-27. This calculator for FY 2026-27 therefore applies no surcharge at any income level — the top slab is Rs 1,424,000 plus 35% of the amount above Rs 7,000,000.