The Budget 2026-27 has introduced significant changes to income tax slabs, impacting salaried individuals across Pakistan. To help you understand your new take-home salary, we present an easy-to-use income tax calculator. This tool allows you to estimate your net income after taxes based on the latest fiscal policies.
Key Changes in Tax Slabs
The government has revised tax brackets for the fiscal year 2026-27. The new slabs aim to provide relief to low-income earners while increasing revenue from higher-income groups. Below are the updated tax rates:
- Up to PKR 600,000: 0% tax
- PKR 600,001 – PKR 1,200,000: 5% of the amount exceeding PKR 600,000
- PKR 1,200,001 – PKR 2,400,000: PKR 30,000 + 15% of the amount exceeding PKR 1,200,000
- PKR 2,400,001 – PKR 4,800,000: PKR 210,000 + 25% of the amount exceeding PKR 2,400,000
- PKR 4,800,001 – PKR 9,600,000: PKR 810,000 + 35% of the amount exceeding PKR 4,800,000
- Above PKR 9,600,000: PKR 2,490,000 + 45% of the amount exceeding PKR 9,600,000
How to Use the Calculator
To calculate your take-home salary, simply input your gross monthly or annual income. The calculator will deduct the applicable tax based on the new slabs. For example, if your annual salary is PKR 1,000,000, your tax would be 5% on the amount above PKR 600,000, which is PKR 20,000. Your net annual income would be PKR 980,000.
Additional Considerations
Note that these calculations do not include other deductions such as social security, pension contributions, or professional tax. For a precise figure, consult your employer's payroll department.
The budget also introduces a fixed tax regime for certain sectors, but for most salaried individuals, the above slabs apply. Stay informed and plan your finances accordingly.
